[onion2k]

There are a couple more things wrong here.

LEOs have access to tools that the public and corporations don't have access to, and the law prevents them having access to. By paying a LEO to access those tools the insurers are circumventing the will of the people.

Also, by paying LEOs to investigate a particular crime that means the insurer is effectively getting to pick who is investigated and who isn't. They should be able to deny a claim, and report what they believe is fraud, but the insurer shouldn't be telling law enforcement who to look in to. That's law enforcements decision alone, and payments muddy the water.

Paying for law enforcement is a bad idea. It changes the incentives too much.