There's nothing inherently wrong with that, but many of these require dubious "checkbox security" procedures and practices.
Unfortunately, there's no point in arguing with an insurance company or a contract or a certification organization, certainly not when you're "just" the engineer, IT guy, or end user.
There's also little point in arguing with your boss about it either. "Hey boss, this security requirement is pointless because of technical reason X and Y." Boss: "We have to do it to get the million dollar contract. Besides, more security is better, right? What's the problem?"