Insurance is expensive. Most houses don't burn down. A small percent get burglarized. If you can self-insure, more power to you. If you do take a loss, take it and don't complain—it was your choice.
In some cases, grey market equipment is much cheaper, and only a small percentage of cameras are defective. If you buy from shady suppliers, there is every chance that the camera was damaged or defective. It was returned and offered for sale without being fixed.
On the other hand, cameras that are sold as refurbished by the company, are generally gone over by technicians and actually may be more reliable than new equipment. You can save lots of money buying grey market, but you can also run out of luck. It all depends upon how sophisticated a gambler you are. If you can toss a dead camera in the trash without trying to create an international incident on every forum you have access to, by all means take the gamble. In many cases, it will work out fine. Just realize that it is a gamble, and even the most experienced gamblers lose on occasion.
"A sucker is born every minute." If you get snookered by a scamming dealer who relies upon your greed, and then you rage against the manufacturer, you only humiliate yourself. You are equally a scumbag. You went for the cheap route, willing to trade in stolen property or damaged goods, and you expect legitimate buyers who buy from authorized dealers to subsidize your greed.
No camera is fixed for free—part of the price of my X-Pro1 is to fix defective—but not damaged or stolen—cameras. Camera ownership is not an entitlement. Scamming scumbag sellers are not the responsibility of camera manufacturers. Greed and stupidity—even in the most egalitarian societies—provokes sympathy only from equally greedy low-life demanding that I must pay more for my legitimate purchases to subsidize their greed. Why should honest photographers be taxed to support exploitative scammers with no conscience and a totally unwarranted sense of entitlement?
No one is a better friend to a photographer than a legit camera dealer. It would take a book to list all the services above and beyond the call of duty I have enjoyed over more than half a century as a shooter. You may think you are paying a premium, but often it is the best deal the world has to offer.