Most insurance carriers have what is called reinsurers. Which means another carrier or syndicate will assume the risk after the claims reach a certain value.
Funny how the insurance companies are doing just fine. It's not complicated, if no money is going out (payment of claims), those companies keep that money. Then they pull out of the market. Yep, it's legal. Insurance companies have always done this little dance. Always.
Remember it is the one item, you voluntarily pay for and have to fight like hell to get them to provide the service which is to pay for legitimate claims.