Having worked in the insurance industry, and spent a fair amount of time chatting to the underwriting team about what goes into their models, they do on the who

Having worked in the insurance industry, and spent a fair amount of time chatting to the underwriting team about what goes into their models, they do on the whole use this data in a straight forward way - if you drive well, you'll get a lower rate. If you drive badly they're going to charge you for the privilege. Don't get me wrong, there's definitely a bit of "but we can charge more" baked into the pricing models, but that tends to go in as a completely separate "we can charge more" line item within the internal model. This if nothing else is because in the UK the Financial Conduct Authority have an extensive list of things you can not price on, regardless of whether your models show they're indicative of a greater risk. The FCA don't care if you're charging more than you have to, but they will tear you a new one if you're shown to be breaking the rules.