Re: What type of claims are being paid out?
"If there was no chance that a policy could ever pay out more than the premium then nobody would buy insurance at all."
I beg your pardon? Does e.g. Payment Protection Insurance ring any bells?
In general in the late 20th and early 21st century, punters don't *buy* insurance, they are (mis-)sold it by commission based salespeople of all kinds, and Boards of Directors who see an opportunity for a personal fast buck.
If technology comppanies and systems *had* to work properly (anything from airport terminals to "smart motorways" and a whole load of other stuff e.g. cheap outsourcers, cheap hardware, and maybe even antisocial media outfits and now so=called AI companies)
Who pays for Boeing management's incompetence and lies?
Who pays to insure the nuclear power cult?
Etc.