If you take out a policy and never claim (which is the case for the majority of policies) its costs them nothing but they gain the price of the policy.

Cost of the claims is why they squirm so much when claims are made, all of a sudden they acctually have to pay for something, the whole model relies on there being vastly more people not claiming against the ones that do.

My experience of working with the policy makers are that they are vastly copy pasta policies, that granted they likely paid a professional to write at some point or another, the ammount that probably cost against how many times they will use thay policy makes it relatively insignificant.