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Does travel insurance have to pay out if your destination country kidnaps you and sends you to a prison in El Salvador or Cuba?
Not sure -- but it's plausible that the media/bubbles are hyping up that sort of event, even if it's an outlier. Like there are millions of visits to the US from Canada on a regular basis -- one lady got put in a detention area, as a result of having wonky paper work on a longer term work visa (something most regular tourists/travellers don't have to worry about).
As far as I know, travel advisories aren't issued as a result of 'cost to insurance companies', but rather danger/risk to citizens travelling to those countries, imposed by governments. Travel insurance providers look at those, and determine risk/coverage based on that sort of information. So no explicit warning, implies there's no significant risk, for most visitor types.
Advising something like "If you use X as a gender, make sure to carry additional paperwork/figure out additional rules", isn't something that's going to cause a "generic" family to worry about going to Disney Land.