Have you ever had more than a minor annoyance result from some company's use of your data? I understand the instinct and ick factor, but I've rarely seen an actual practical consequence.
That data (your profile) is yours, and yours alone. No one has the right to package it and sell it without your consent. Now, it is possible that you may feel gregarious and offer up your data; but that would be by choice.
That doesn't make any sense.
Causing accidents to increase premiums would be pointless and actually cause them to lose money (premiums are almost never more than the actual cost of an accident).
Think of it this way: You have 5 people who pay $100 a month. After 3 months ($1500 profit), Alice causes an accident that costs $500. The insurance company pays for $400 of that and raises Alice's premium by $25. Now, their profit for those 3 months is $1100, but they're also now making $125 a month. That $400 insurance payout is paid for from Alice, Bob, Charlie, David, and Eve's insurance payments totaling $80/person/(3months).
Raised copays are the reason some people don't submit claims. It's a question of "Do I want to pay $300 now, or an extra $25 a month for 2 or 3 years?"
But to say that their profit model is based around causing accidents or paying as little as possible is a complete lie. Sure, insurance companies can be greedy, but their profit model is making money off people who don't have accidents. Paying lesser amounts is just an added "bonus" they get when accidents happen. It's greedy, but that's not the profit model.
That is kind of the point.
If I'm stricken with a terminal illness, health insurance won't do much for me. Life insurance could mean the difference between my family being OK or really struggling.