The Law of Large Numbers

Insurance companies operate based on the law of large numbers. This means that the greater the number of people who invest in insurance the greater the probability that the actual loss will equal the expected loss...In other words, if you can get a large number of people to buy insurance, many people will pay in covering the cost of the workers and buildings required to keep an insurance company going along with paying out to the few people who are able to actually manage to take advantage of this insurance. Also the CEO can take a huge cut call themselves a "job creator" and ignore the fact the company exists solely for the purpose of exploiting people who simply could not afford to pay for something in the first place.
That is how the law of large numbers works.