>>5434514 Essentially, yes.
^ this
Also, insurance companies accumulate ginormous pools of capital which they need to invest when not paying out claims. This gives them enormous economic leverage. The bigger pool of capital you have to invest, the more you can control the direction of markets and specific market assets. If you can control the direction, then you can bet long and bet short at appropriate times with derivatives for massive leverage multiplier effect, to suck the money away from the outsiders, no matter which way the market moves.
It's not really capitalism at that point; it becomes oligarchy.