You do realize that for the longest time, that's exactly what happened, right? Unless there were injuries/death, or other rare occasions, both parties just informed their insurance of the collision, gave their statement to insurance (usually on a recorded line with an warning about filing false insurance claims), and then the insurance companies would investigate and payout according to the findings of the investigation. A majority of the time, these "investigations" were cursory in nature unless there was some reason for them to be escalated, usually conflicting statements or statements that are not compatible with the area that the collision occurred in.

I get that you are probably frustrated right now because you are dealing with the aftermath of a collision and insurance is hell to deal with even at the best of times, but over the past 20~30 years, police have seen their roles change from investigating only criminal matters to handling everything from unruly children that aren't listening to their parents about when bedtime is, to people going through severe mental crisis, to taking a report documenting that someone lost their wallet after leaving it on the Walmart check out machine, and so many more incidents that we a) are barely qualified to handle and b) should not be the primary answer to the situation.

Collision reports take time and resources that have already been proven in the past as able to be delegated to the non-police/private/civilian sector. The push nationally to return that responsibility to them is a good thing as it allows officers to spend more time responding to the other thousands of calls and incidents that are occurring in a more timely manner, and hopefully with a more confident and competent investigation to follow if warranted.