A lot of insurance companies have caps on profit, either as part of their structure or by regulation. Often the cap is structured as a percentage above covered losses, so administrative costs, including executive salary expense are effectively limited. In health insurance, this can lead to cost inflation, but I haven't really seen that in home and auto --- the market of service providers is so different.

Certainly, they're in business to make money, and helping customers is just part of the process, not their goal.

But --- it's in the customers' interest for the company to be accurate about accepting and denying claims. If the company accepts claims that should be denied, that means higher premiums. If the company denies claims that should have been paid, that may result in the company having to pay those claims after appeal/lawsuit and possibly with penalties; penalties get paid by the pooled insureds one way or another.

Insurance fills a need and is not just an evil company doing evil. Most insurance covers risks of loss that the insured would be unable or unwilling or at least unhappy to cover themselves. For most homeowners, if their house burns down, they would be unable to rebuild without insurance, unless there was clear liability from a person or company with big pockets.