Is there really a measureable chance of some CAA official accessing a pilot's logbook, auditing the entries, cross-referencing those to a separate audit of an aircraft's insurance, and then pursing a case against the pilot?
If so, there are even more resources being wasted than I think most people would imagine, both in terms of the CAA reviewing at pilot log books (also a waste of resources) and auditing aircraft insurance. Locally we have no aircraft insurance requirement, never had one, probably never will have one, and it makes no difference whatsoever. Aircraft owners typically cover the aircraft for their own reasons, and if they don't they usually are making a sound personal decision based on what they do with the aircraft.
I haven't even mentioned the resources being wasted in discussing whether you can log PIC time in an uninsured aircraft!