They will lose money, only people who drive very little will buy the insurance. Hopefully for their sake they are good drivers.
It is believed that infrequent drivers are the worst. Driving skills must be maintained, and that requires a lot of driving in diverse conditions. Low mileage drivers are usually at loss once they leave the known area - and occasionally they have to do that to see a doctor, to meet people at an airport, etc. That's where they may get in trouble. You often need to know some intersections and roads to drive safely instead of diving for an exit across three lanes of freeway and 50 feet of distance. Just today I was on a road (that I know well) that has 50 mph speed limit and a traffic light carefully hidden behind a turn and a bunch of trees. You can't see the light until it's upon you. If you know the road it's not a problem.