Yes exactly. They make money by a) charging enough in fees to cover the risk and b) limiting the amount they have to pay out. Just look at how health insurance

Yes exactly. They make money by a) charging enough in fees to cover the risk and b) limiting the amount they have to pay out. Just look at how health insurance works: without government regulation, most of the day to day healthcare you actually need isn't covered under the terms of the insurance. For example, contraceptives.