I think the only thing we see eye to eye on is our dislike for Jon Jones, Sideways. I cannot believe what I'm reading right now.
You are suggesting the UFC do away with it's insurance policy because fighters are getting injured and having to pull out of fights? How is it fair for the fighters who will have to pay out of their pocket for injuries they sustain in training camps preparing for a fight? Fighters pulled out of fights before the insurance policy was in place. Your solution suggests the insurance policy for fighters creates an incentive for fighters to drop out of fights which is wrong. Fighters want to fight because they get paid per fight, per show, they miss out on a potential bonus, on marketing, they age etc.
Fighters are pulling out of fights because they have to, not because they want to.
Ironically that same thought crossed my mind mentioned by the OP. It's the business in me that was doing the talking. In reality that would make the entire organization take a step back. The best approach would be to add reasonable clauses as mentioned in my earlier post. Preventive measures are always the best. There's positive and negative reinforcements that can be applied here.
Sign the contract, fight injured or whatever ailment you have and get an automatic bonus OR cancel and the UFC deducts their fight purse. Simple. With nothing at stake fighters will continue to pull out. Again it doesn't have to be too drastic. Just enough to get the point across. The UFC is still in a learning curve.
I just hope Dana has a heart monitor cuz he must deal with some serious stress on a daily basis.
Marcus Aurelius: Tell me again, Maximus, why are we here?
Maximus: For the glory of the Empire, sire.
Baked, not fried... the healthy choice.