It is about a.) avoiding criminal liabilities for frauds by the insurance company b.) facilitating desirable fraud by employees while keeping plausible deniality.

It is super hard to build class cast action and suing companies for denied insurance claims is also quite hard - and super expensive. Besides, the current management dont need it to go on forever, they just need it to go on for now. If company gets to pay fine 20 years later and you already pocketed the bonuses and salary, why would you care?