Yes, the argument is that the entity providing the insurance is surely earning more income that they are paying out since in addition to payouts, they also have overhead costs and must be profitable. Said another way, their customers are paying more than they receive, on average. That's a mathematical and economical certainty.

You are right that it might still feel better to you to pay regularly instead. That's subjective.

Knowing that you will likely end up paying less in the long term if you don't pay the insurance might help getting over that feeling, but that's a personal choice in the end.