They will need millions in reserves you are absolutely right. However, lets look at this realistically, most people aren't going to file claims the day after they get insurance at least i never have with any type of insurance i ever had. Also they will probably collect the first months premium in advance, which means they will have hundreds and hopefully thousands of customers paying in advance. Not to mention they will have the backing of RXNB as well as the millions they still have that they havent touched yet.