Payouts cut into the profit margins, so insurance companies will pay as little as they can get a way with legally. When paid anon in monero, it's even easier for them to take the money and run (or operate as a ponzi scheme or whatever else).

On the other hand the insurance company must ensure that their customers claims are correct, so that they do not get scammed. I'd assume they demand proof, which does require a lot of personal info.