This is different from insurance in that insurance has very few, but large payouts shared by many small cost subscriptions. But it is like insurance in that it

This is different from insurance in that insurance has very few, but large payouts shared by many small cost subscriptions. But it is like insurance in that it is a (likely very) large upfront cost for Apple that needs to be shared by many small subscriptions. If no one has to pay for it until they need it, the venture from Apple's side goes in the red. Disclaimer: Speculating on the likely economy of it, I don't know.