"Justifying lower insurance rates" is just algorithmic bias described from the perspective of someone it doesn't (currently) harm. See also: credit scoring, insurance claim acceptance, job applications, etc., etc.

You only get offered a discount if most other customers are being compelled to pay full (or even increased) prices for the same offering. Otherwise revenue goes down and company leadership finds itself finding other ways to cut costs and increase profits.

Because I don't trust that that location data won't end up in the wrong hands.