The similarity is that you are insuring against a specific event with a lot of caveats. As a silly example, if you insure your house against fire damage and then light it on fire yourself intentionally, you're not getting anything. The insurance policy may not even cover accidental fire damage if it was due to your own negligence, e.g. operating an unsafe fireplace.

Given all these terms and stipulations, it's easy for the insurance company to say the policy doesn't cover the specific event that led to your loss, even if it should. Which is when you have to take them to court. So in the interest of keeping the insurance business an actual legitimate business people trust, you have oversight.

Because people who need insurance are already suffering from a loss. Having to sue the insurance company for fraud would be just adding insult to injury, and would be unattainable for many people who cannot afford to open lawsuits. Pre-emptively putting mechanisms in place so you don't have to go to court to get your insurance claims handled makes insurance work with society.