The exemptions are the first hurdle. Airlines are getting sick of compensation and often won’t pay until the day before the court date. And in some countries you must follow a procedure and depend on government officials, but they may ghost you for a year (maybe in cahoots or legitimately backlogged)

I always get downvoted for saying anything negative about EU consumer protection…but the protections are so well known and claimed, that it’s hurting airlines financially so they devise strategies. The politicians know this. Absolutely they do. The protections are only as good as how easy they are to claim

And anyway we are basically paying for this insurance anyway through increased fares and fees and baggage costs etc.