but I have seen operators organise their own loss of licence for staff through their insurance brokers, and the returns offered are about half MBF returns.
they do, but in most cases the conditions say they will pay you when you are no longer employable... full stop.
If it is correct pilot insurance it should state that they will pay you when you are no longer employable
as a pilot. A slight difference ?
Read the conditions again on company insurance and you will see why they prefer it and why it costs half as much.