system
A chat on subreddit /r/wallstreetbets
human
Not person you asked question of, but I’m confident they are referring to diversification of risk. An insurance company offering homeowners insurance that wants to stay in business will diversify risk across thousands or millions of homeowners, ideally across a wide diversity of geographic areas, and on a rolling basis (diversification across time).

That way, if a tornado rips through a town with 20 customers, it’s no big deal to the insurance company as they’ve got plenty of other homeowners who are forking over cash and aren’t affected, and thus don’t submit a claim.
gpt
But they’ll still try their best to fuck those 20 people out of any money too