Why don't we have insurance ?

In the last few days, one of the major challenges faced by our industry has been the spike in cancellations and its financial consequences. Whilst the cancellation charges have to obviously be borne by the clients, travel agents endure immeasurable stress in their endeavour to keep these to the minimum or get them waived completely. And of course, clients expect this from their travel agents, even though they usually are fully aware of the cancellation polices in their booking terms.

Most times, international suppliers will advise agents to recover these cancellation charges from the clients travel insurance. Problem is - that our travel insurance does not cover these charges. International travel insurers offer appropriate coverage for eventualities such as trip cancellation and trip curtailment. Some even offer insurance against supplier bankruptcy. 

A few Indian travel insurers do cover trip cancellation and trip curtailment. However they offer a small and inconsequential percentage of the total sum insured. 

Any theories on why this is the case ?