Exactly, data of incidents never makes it to the insurance company in the first place. They only get like monthly stats of your general driving skills - just had a look in the contract, it's just a single percent value that they get.

Besides, the legal requirements for denying coverage in Germany are pretty high.

If you're crashing with 130 in a 30 zone, you won't need digital evidence.

Your car already records data like your speed prior to a crash if anyone cared enough to go retrieve it.

True, and I believe that accident investigators are very good at accurately deducing a vehicle's speed from the accident scene. My concern here is that as an organisation the insurance company is motivated to find ways to not pay you. Providing this information to them is giving them another thing to turn to, to refuse your claim.

Not all cars. My 2017 VW has a clear message in the manual that it does not have a data recorder.

Sounds like a "bad" thing for them to do, from our perspective. But what if this actually caused those drivers to drive below the speed limit. On some level, this just easily solved a problem that's been plaguing city governments for decades if not a whole century. They've tried fines, tickets, speed-cameras, traffic-stops, police presence on the roads, etc. An entire industry has spawned off to cater for all this "societal fluff" of trying to get people to not do things by metaphorically "spanking" them. And here we have a semi-reasonable solution to the problem that's cheap, self-enforcing, and all it requires is for us to have some level of trust for the tracking devices/data/company.