How is the insurance company taking a concentrated risk? My auto insurance co is betting that more people will drive safely and not make claims than the value o

How is the insurance company taking a concentrated risk? My auto insurance co is betting that more people will drive safely and not make claims than the value of claims paid out. They distribute, not concentrate, their risk. They accept that there will be some people who have claims larger than what they have paid in, but that risk is distributed over a large pool.