@carmel
I expect that the insurance companies don't really have much of a say.
It would be impossible for them to examine and risk-assess each and every flight every day and in all conditions, so the only practical way would be for them to cover all flights 'provided they are being operated "in accordance the regulations in force".
It's very unlikely that they have any form of veto.
If heavens forbid something went wrong they might try to recover losses from the authorities _if_ they could prove they were negligent in setting the regulations.