That probably also includes the lawyers for when a policy holder gets sued by either another insurance company, or an individual. Also, claim expenses, since apparently you can't do math accounts for 15.778% (5240/33210) of revenue (from claims), not 40%.
In any case, they didn't make money on the claims themselves as was stated. If you think that they have too much overhead, that may be a valid argument. Perhaps they could lay off some of their employees to lower it, close down some offices, etc. However, the ease in which I can get a hold of my agent, and the way claims are handled, is exactly why I personally use them. The last thing I want to do when I have a claim to file is to deal with paperwork, and runarounds delaying getting my stuff fixed/repaired and getting back to my life again. You, may choose another company who has less overhead, but more headaches when you have to deal with them for a reduced price. The choice is of course up to you.
I merely picked out one example of one insurance company (in this case, the numbers I gave was for the auto division of state farm), but the claim that they make a ton of profit is pure garbage.