Citing the U. S. Privacy Study Commission,

The real danger is the gradual erosion of individual liberties through the automation, integration, and interconnection of many small, separate record-keeping systems, each of which alone may seem innocuous, even benevolent, and wholly justifiable.

The whole report is public, and it specifically addresses insurance in this context: https://aspe.hhs.gov/report/personal-privacy-information-soc...