Most health and life insurance carriers were non profit before the mid to late 90's. Yes, they made a profit(and they wanted to) but the profit was kept it in house. What did they do with this profit? They paid claims or when healthcare cost went up say 10% they only had their policy holders have a 8% increase because they used the profits to help offset the increase or they just kept it for a rainy day.
When they went "For Profit" via a NYSE stock exchange, much of the profits they make now have to pay off shareholders each quarter via dividends-the shareholders expect a check each quarter of course. This was fine when the stock market was going up and up every year but it has been a failure when the market declined or stayed stagnant.
When the market declines the shareholders still expect their divedned check so if the money is not there the insurers increase their premiums or decrease their level of care or both.
Thanks for explaining.