Many CFI's care more about covering their arses from "theoretical" insurance company non payment in case of an incident / accident. As clubs become larger they think more about this aspect of liability.
From my experience this leads to flying of the lowest denominator. The insurance company become the "bad guys" who can be blamed for a number of the CFI's decisions not to permit something or other......"well it's only because the insurance company won't pay out if we had an incident".
Unfortunately at some !clubs" the insurance company becomes the INVISIBLE CFI.