That's because the system is setup so that the payouts go from a pool of money that would otherwise be "profit" for the company. If the company's "profit" is independent of the payouts, maybe this would help. Probably have a separate pool of the money from where to settle claims. You could split up the premium into two parts:

1) The money for the payout pool. No profit should be extracted from here.

2) Money that you will invest and thus earn profit from.

You could use actuarial science to make sure that you have enough collections to statistically be able to pay out every claim. And in this model, the company would have no incentive to NOT payout