Hello, the security folks in those companies made those up. "cyber insurance" is hogwash. That entire branch has been taken over by useless middle manager types who know to type up checklists in Word but have no understanding of anything.
A breach can turn out into enough money being lost, in credibility, canceled orders, or lawsuits, big enough to close shop, or having to fire those that thought security rules were dumb.
Also anyone with security officer title, in many countries has legal responsibilities when something goes wrong, so when they sign off software deliverables that go wrong, is their signature on the approval.