It was my general understanding that insurance companies charged its customers a premium for insurance policies which they in turn reinvested to cover the eventual payouts. The more efficiently they did that, the more money they made.
Apparently they’re not satisfied with that anymore. Now, they see the “deep pockets” of the tobacco industry coupled with a hyped-up public hysteria about smoking and have targeted the tobacco industry to further line their pockets with increasing profits.
Read more Insurance Companies Profit from Smoking