I would think Insurance companies understand their business better than most industries &lt; you loose a lot of money fast if you do risk wrong.<p>They don&#x27;t expect profit from all their accounts, not a priori. However they <i>choose</i> to do business only with those account which they <i>believe will be</i> profitable. If They expect to loose money from an account, they&#x27;ll choose not to do business with you.<p>We can debate if this is moral or not (some religions state it&#x27;s not, i.e. the Amish as it is a form of gambling and discourages charity) but that&#x27;s the game.