Feels like many insurance companies have replaced humans with a simple printf("No payout"). They only pay in the rare case when someone manages to raise a social media shitstorm.
A thing you might find useful to look at: loss ratios. Loss ratio is industry jargon for claims paid plus claims-related expense over premium income. GEICO's, for example, is 82.1: for every $1 in premium they take in, they pay 82 cents in claims.
The industry is regulated to a degree that few are, in both the US and Japan (and many, many other countries). If your loss ratio is too low, your friendly neighborhood insurance regulator will not look favorably upon that fact.