The fact that sportives are timed and in some cases prizes awarded for finishing places, etc. might actually breach the non-competitive rule though so they have a point.
Fair. I was thinking of Italy but some UK sportives award different medals for different finishing times (Gold medal, time is under 6hrs, that kind of thing) so it would then depend on how their insurers define "competitive".
The fact that sportives are timed and in some cases prizes awarded for finishing places, etc. might actually breach the non-competitive rule though so they have a point.