Why would it be fixed? Insurance companies aren’t willing to invest in oversight, and everyone else profit, there is no incentive for changing the system.
Nepal is a low income and high corruption country, where the government and formal business structures are unstable enough that 'tipping' becomes common even for government investigators...
It's basically a way for everyone to get more tourists dollars, which is one of Nepals primary exports.
My travel health insurance lately warns of Egyptian hospitals and doctors trying to charge absurd amounts for simple procedures for tourists, and pressuring them to pay, arguing they can get it back from their insurance. Similar story.
Why don't they just charge [more] for a mountain license? A few thousand per hiker would probably be tolerated by people who view the hike as a lifetime achievement kind of thing.
There’s far more tourists in Nepal who are trekking than mountaineering. And those tourists are going to be much more price sensitive. It’s not just wealthy Americans, but people from all over the world - India, China, middle income countries etc. All those people are spending money in tea houses and hiring local guides.
They do charge quite a lot for mountain climbing permits but trekking is mostly just walking from village to village along the usual paths the locals use.
If the cost to an individual insurance company is low enough (in the few millions) and they're not really at risk of it suddenly exploding, and the cost for them to mitigate is also in the millions (or risks killing a customer), they're unlikely to improve. Fight Club, but the other way around.
However, if they all gang up together they might do something - but that can cause other issues (a local insurer becomes the only insurance available, etc).
Just include helicopter rides in the ticket. These aren't adventures anymore - just "natural" theme parks for monied elites that need talking points and social media posts flexing their wealth. Does Six Flags charge your insurance for security to drive you back to your car?
It's basically a way for everyone to get more tourists dollars, which is one of Nepals primary exports.