They live in a rarified world. They do not understand ordinary people and are in fear that ordinary people spend all their time in green-eyed envy of the wealthy. They cannot comprehend that most people, even poor people, have more important things in their lives. They fear farmers with pitchforks, if I may use a metaphor.
They are aware that their security is no match for the hordes, so they supplement their protection with conspicuous virtue. They make a big deal about being virtuous and caring about the little people, hoping to stave off and attack.
It doesn't matter if it solves no problem as long as it is conspicuous. It doesn't matter what it costs. However much they give away, it is a small price for security and peace of mind.
In other words, they have no idea what people are really like, and they live in a kind of weird combination of luxury and fear.
Peter Lewis, at least, made his money exploiting the bad fortune of others. His Progressive insurance company offerred pool insurance to drivers who were not accepted by other companies. So, first pass a law requiring it, then soak the customers. At one point Progressive was charging me $900/mo to insure two cars, after State Farm declined to renew after two little snow accidents.