> Generally i think companies leverage data to ratchet rates upwards, not offer unsolicited discounts. Why invest in infrastructure that will reduce profit?

Because it's a competitive market, and if they don't offer competitive rates, other insurers will take all their market share.

I'm really not seeing how this isn't obvious. If there's a clearly more efficient way of doing insurance rates, companies can either adopt it, or die at the hands of the ones who do.