This is FUD. Like any small insurance company that doesn’t want to go bankrupt within a decade, they’re reinsured (in their case, through Lloyd’s of London) to deal with exactly that sort of scenario.
The way they operate is simple: - They keep a flat 25% of premium payments. - The remaining 75% is used to pay out claims and to purchase reinsurance. Anything left over at the end of the year from this pot gets paid out to charities that their customers select.
My insurer pays out a dividend if there is anything leftover in that "pot" at the end of the year. Nice to get a discount.
We gave you an atomic bomb, what do you want, mermaids? -- I. I. Rabi to the Atomic Energy Commission