Insurance companies can access large amounts of data about people. This chapter asks a provocative question: should this always be assessed negatively? To answer this, the chapter surveys various theories behind consumer law: protection of autonomy, higher efficiency, broader choice, lower prices, and socialization of risk. It then analyzes the uses to which companies can put data: product creation, consumer acquisition, risk assessment, influencing policyholders’ behavior, complaint handling, and fraud detection, from the point of view of these normative theories. The results nuance the conventional wisdom that the law must always be skeptical of consumer data collection by insurance companies; however, it also outlines what practices are inherently problematic. The chapter ends by discussing the possible legal reactions to data collection and use by the insurers, divided into political choices at the table and steps that the law requires to be taken.