From the insurance company's perspective, it's a $1 million bet they are taking that no one will be able to achieve it. From the participant's perspective it's a $1 ticket to a $1 million lottery. From Zucker's perspective a business (I would call it a scheme) for making money. Quite interesting.

On a related note, Ansari X PRIZE (for the first private space flight) was partly funded through a similar deal with an insurance company.