Insurance (of any kind) is just one massive scam opportunity for scammers, overbillers and exaggeraters to make a killing. Everyone is out to make the most money out of it, and not just the insurers.
IANAIU, but I heard an explanation regards insurance business on the radio which seemed compelling; that there’s no real incentive for an insurance industry to limit or reduce payouts, as it’s all cashflow, and recoverable from the captive audience clients via next years premuims. Now, I’m no accounting genius, but that seems to make sense to me, and the only net losers are the premium payers, in the end. So as far as a ‘scam’ is a scheme designed to extract maximum cash out of the scammee, if probably agree that it is an elaborate, legalised scam.