I work in the insurance industry, and you seriously misread their motivation. Surcharges for violations are not a profit source for the industry, far from it. They exist to try and equalize the risk associated with bad drivers and if you crunch the numbers on premiums vs. claims you'll find that they barely manage to break even on some of these drivers even with the surcharges. Additionally, it takes at least two small violations or one really big one (speeding >25mph, reckless driving, DWI, fleeing an officer, etc.) before the surcharges even start in most jurisdictions. The first minor violation is a mulligan in every jurisdiction I've ever worked, with every carrier I've ever represented.
Another point to consider is that a lot of drivers with violations will slip through the cracks and never get surcharged. Most insurance carriers do not run your license at each renewal, since they pay a fee to DMV for each report they request. It's a randomized process, occurring every X+[random fudge factor] number of renewals. Some events (coverage changes, moving) will trip a report regardless of how long it has been since the last one, though this is carrier specific and each has its own way of handling such occurrences.
You aren't obligated to report violations to your insurance company either. You can't lie to them if they ask (as they will on an application for new business) but you're under no obligation to volunteer the information during your policy period or even at renewal in most states. If you get a conviction the safest thing to do is nothing. Don't make any coverage changes, don't shop for new insurance, just pay your renewal when it comes and keep your mouth shut. The odds are good it falls off your drivers license before they run your report, and even if they do find it you've got a better than 50/50 shot at it happening towards the end of the surcharging period. Surcharges aren't retroactive, if they surcharge for 36 months (typical for minor violations) but don't find out about it until 30 months after the fact you're only going to be on the hook for one policy period.