> Insurers will always set premiums so that you're on the losing side of probability. Their real product is protecting you from the damage of going negative.

This is also a legal requirement as underselling the cost of the underlying risks can put your company at risk of insolvency.

States hate having insurance companies go bust in case of a real emergency so there are liquidity, zip underwriting and other preventive measures to keep companies kicking because the alternative causes the state to eat the costs.