I guess I'm just surprised they even bother trying to mask an obvious shake down under the euphemism "insurance" when it's such a trope. Obligatory Sopranos clip of old school mobsters trying to sell "protective insurance" to a Starbucks: https://www.youtube.com/watch?v=_Gsz7Gu6agA

I assume it's to discredit the current international insurance scheme for shipping that doubles as a method of enforcing sanctions.

It lets people not look up. And given the slightest opportunity an awful lot of people will take the don't look up answer.