Insurance fraud is checked for in real life. In EVE every insurance is paid out, including fraud attempts of players who wish to convert their ships into ISK.
Insurance in EVE cannot pay much more than the value it is now, unless Concord starts checking for elaborate fraud attempts. I doubt it’s worth it for CCP to make a fool-proof plan that can always distinguish if someone lost their ship on purpose or not. I doubt it’s even possible.
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Paying Insurance only if you had your Safety on Green and being in HighSec would be a good start. 
That just heavily restricts insurance but does nothing against self-destructing your ships for profit that would happen if insurance paid out any significant number that people would be happy with.
aren’t you suppose to leave the game ?
I guess that would be the smart
I didn’t say it should pay more than the ship+fit is worth. It must always be capped at like 75% of the average EIV of the last 3 months at least, to prevent market manipulation.
Also losses from self-destruct obviously shouldn’t pay insurance.
And don’t care what “would make ppl happy”, because the majority of “ppl” is just stupid. It care for what makes sense in the lore of this universe. And the current system does not.
indeed
Creating a system with checks and balances isn’t hard. A self destruction wouldn’t give a payout obviously. That just wouldn’t make sense.
People can easily self-destruct in many other ways though, from PvE (flying into NPCs) to PvP (killing their own alts) for insurance payout.
CCP simply cannot let insurance cover more than a part of the cost of a ship if they want to avoid this exploitive ‘insurance fraud’ behaviour.
Thats hard to believe because, as suggested, the payout would always be lower than the items destroyed plus it wouldn’t pay if you voluntarily enter any PvP mode or area (like making a duel or leaving HighSec). That means the “Alt” could only “gank” the players ship to get the insurance, which would add even more costs (Gankship, Secstatus rebuy). So if the payout is always capped, where does the profit come from?
Not even mentioning your accounts are all connected via the launcher so it wouldn’t be hard to refuse a payout when killed by a character on the same IP or one that’s connected via same launcher.
This is why VPN’s, Virtual Machines, and laptops exist…
CCP, in their infinite wisdom, gave us the ability to have unlimited accounts using unlimited anonymous email addresses. There’s literally nothing they could do about it…
Then I kill one of my friend’s and they kill one of mine.
Or I just undock and sit at the gate in front of our Keepstar for a minute, I’d be killed too.
Bottomline is that it’s really easy to get killed on purpose, which means that paying people more or anything close to their loss for such an action is a bad idea, as it basically would be an NPC sell order to turn your ship into ISK anywhere in the game without the need of an expensive market module or NPC station.
“Easy to get killed”? Not if you restrict insurance to high-sec 
Like others said: restrict insurance to “safe” places and it starts to make sense.
Please stop repeating this on every occasion, it has been debunked already. Physical PCs can be identified regardless of whatever setup of VPNs and VMs you use, by fingerprinting hardware components. The client can access certain device’s Serial Numbers like any ‘hardware check tool’ can and unless you know exactly which one(s) EVE would be looking for, it’s close to impossible to spoof them all to display different values. And only a single ‘match’ would already compromise you and link the accounts for any detection algorithm.
‘Restrict insurance to safe places’?
You might as well delete capital insurance then.
Also even in HS you can easily get yourself killed. Just find a drifter hole, attack some Edencom, Trigs or Autothysian Lancers. Or go AFK in front of Jita with no defences.
Dying in EVE is easy, espevially if you’re trying to do so intentionally.
That is not really relevant in this context, as you could just as easily get a friend who definitely is not you or on your PC kill your alt to claim insurance.
So even if CCP could technically recognise your alt that won’t stop people from insurance fraud.
You still don’t answer the question why people would even do it if no profit can be made because the payout is always lower than the value of the items?
And of course capital insurance should be removed. It’s an hilariously stupid concept to insure them right before jumping them into a dreadbomb where they will most likely die. What kind of insurance would ever pay for that? If they want to make these losses less hurtful, lower the construction costs.
iCloud relay makes it trivial