I think another important aspect is that those who flaunt one rule (I can fake my licence, for example) are predisposed to breaking any of the other "rules".
Surely now the insurers are formally aware of this situation they will apply pressure for the authorities and the airlines to get this sorted?
I recall a large airline carrier in about the 1980s (Korean?) that had a run of accidents which, shall we say, should not have happened. The insurance companies refused to insure them unless action was taken. Experienced expat training captains were employed in their training department and they laid the law down and said airline had no more accidents.