Insurance companies are in the business of making money. They may not make money from each customer, but over their entire client base they better make a profit. Every time they renew a policy or take on a new one, it's a gamble for them. Are they in the gambling business? No. That's why they use premium adjustments. A higher premium serves two purposes. First they collect a little more money. Second it reminds you to be more careful.
The big gamble for the mutual insurance companies like State Farm is homeowners insurance. A big storm, hurricane, or earthquake can cost them billions overnight.