There has always been a virtuous cycle in the insurance industry, where appropriately applied insurance helps drive safer behaviour that lowers the risk of loss. Think household insurance that won’t pay out if you leave your front door open, and offers lower premiums the better locks you have.
Similarly consider travel insurance that doesn’t cover laptops in checked luggage. The terms of insurance products are structured to encourage behaviour that reduces the risk of loss, which in turn makes it possible to insure against a wider range of risks at acceptable cost.