Insurance companies do their business on law of “Average loss probability”. For example, let us say, a company ensures passengers travelling in a train without ticket (Worse imagine insuring thieves). That is, if a passenger is caught, he pays the ticket value and fine & produces same to the company after the completion of journey & gets back all the money.
Is the insuring company in loss? No, Company insures 100s of such daily commuters and calculates roughly the probability of a passenger being caught. Accordingly he charges the premium, which also includes maintenance of office, payment to insurance agents, bribes to police, its profit, ability & willingness of the insured to pay, etc.
Here it is illegal but other insurances, like vehicle, health, theft, accident, etc are legal and thrive on our “uncertainty” of jobs, life, care of family, inability to bear medical expenditure, legal requirements, etc!
Just to understand the futility of such insurance and how it creates a class of parasites, agents, marketing skill, huge wastage we must see a Socialist Society. Here there is no unemployment, health & education is free, in case of demise of an earning member of a family, there are other members who are working or the society/state looks after the grieving family!!! Loss of property is not likely, as private property is abolished, however if personal belongings are lost or damaged, once again the society will bear it.
There is no legal, ethical, social, economic compulsion for insurance. In fact the whole society is insured! Personal insurance becomes absurd!
Socialism is needed not only to free the productive forces, proletarian class, working women, Dalits, Tribes but also to abolish parasitism!

Comment by Damodar India: The entire edifice of Insurance industry is based on uncertainty of capitalism, an average salaried person takes insurance to cover himself and the family in event of social turbulence (insurance against home loan) like job loss or against the non existent social policy in event of death (term insurance). In fact in Socialism one of the first thing would be abolition of insurance, when there would be no social risk there would be no requirement of its mitigation. A probable slogan in Socialism could be a life without insurance.