What do we mean by Insurance in general.

This auto and home insurance company that I choose not to mention the name, has increased my auto insurance by 15%. I was surprised because I couldn't tell why. I couldn't control my impulse so I made a call for further explanation. The way he explained why they raised the premium wasn't satisfactory to me. He pointed to the hurricanes in 2008 as the major reason because they had to pay for claims that required backing up from the members. This really didn't make sense to me. I asked what happens to the overwhelming monthly premiums collected from the insured and what is the point of insuring people if the insurance company is not prepared for major events such as hurricanes. The point I am trying to make is, insurance companies collect premiums all year round while major incidents do not happen all year round. By default, in such cases there should be resources that the insurance company has to consult for such emergencies. Then, it can pay off any incurred loans in a long run. This is what I know by an insurance company. It came to my recollection immediately when I thought about what could cause this kind of disparity from the traditional meaning of insurance. The companies in general may be overspending the accumulated premiums for something that may have nothing to do with paying claimants other than required skilled man power. It is probably what may be known as a corporate welfare. I am not one of them but I wished I were when such a jump to my premium comes as a surprise. At least I could have some dependable income to pay the insurance company. Sometimes I wonder when things that never sounded right in the old days are becoming acceptable to the extent of the insurance agent telling me without guilt, the unsubstantiated reasons why they increased my premium. Or Am I wrong?