The problem is not in this specific case (those insurance companies won't go bankrupt), but with the system. When you don't have a proper administration you can't really cooperate as effectively as with proper administration. This is the symptom, not the problem.

Imaging the price of less cooperation - when taken to the extreme the insurance company won't accept to insure people trekking there. The price will go up. This will hurt both the industry and the trekkers.

Proper administration > profit

The article does talk about guides deliberately adding stuff to people's food to make them sick. It goes a bit beyond that.