To do this you can only make money if the insurance is priced at more than the chance of it happening. Or the reinsurer wouldn't be able to offer any insurance either, & the float wouldn't exist because it would be paid back in claims.

Insurance runs on the same premise of making money a casino does. If there was no casino edge, there would be no cash for the casino 'float' back into bets.

Given a market in a steady state, as long as your (return+premium) rate is higher than your expected payout, you're still ok. So your premium-expected_payout could be negative and you could hopefully still keep the lights on, no?