Not in this case because she used fake names to initiate the contracts to avoid detection.

Yes, but I'd compare it to - or even say that it is a form of - arbitrage.

The payouts on these flights should cause the insurance company - instead of adding terms clauses - to increase the price by recognising some of the same patterns she has, and thus reducing the difference in price (/value) between the 'markets'.

Sure, but trading with insider information is illegal in most regulated financial markets.