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Many of the cameras have been installed in homes and businesses by people trying to improve security.
There's are streams from over 11,000 cameras in the United States alone, with tens of thousands of others from places like Brazil, Japan, and the Czech Republic.
For example, a standard Google search for "Axis 206M" (a 1.3 megapixel IP camera by Axis) yields pages of spec sheets, manuals, and sites where the camera can be purchased.
Change the search to "intitle: ' Live View / - AXIS 206M,'" though, and Google returns 3 pages of links to 206Ms that are online and viewable.
Insecam seems to be using similar techniques to aggregate as many of these cams together as possible.
While some are obviously meant to be publicly available, others appear to have been illegally accessed — as admitted on the website's homepage, which says it has "been designed to show the importance of the security settings." But from the ads littering the homepage, it may just be an opportunity to profit off of voyeurism.