As a safe driver, I welcome these types of discounts based on good driving habits. If you do something associated with risk, like a sudden stop, then you should change your behavior.
Because of this, these systems typically are used exclusively to offer discounts against the baseline insurance premium and they can only lower the premium relative to the assumed default risk. It's all carrot, no stick.
https://www.nationwide.com/personal/insurance/auto/discounts... "Can SmartRide increase my premium? No. This is a discount program."
https://www.usaa.com/insurance/safedriving "Will my driving information impact my insurance rates? No. We will only use your driving information to calculate your discount."
Insurance companies are willing to offer these steep -- 40% -- discounts because bad driving is so extremely expensive and damaging. The added signal of driver behavior patterns can allow the insurance company to lower their rates by almost half. Almost half!
As an aside, these are the types of insurance premium reductions we should expect, or better, when self driving cars first become a reality.
Who does tell you that I drive dangerously in the road?
Maybe I bring my car in a circuit every now and then to have fun.
There will be a day when this would not be optional anymore