The argument they're making here is a little subtle, but it tracks. They're not claiming Google will hand out a user's biometrics to insurance companies or other parties. They're claiming Google will offer biometrically-based signal as an ad discrimination channel. At that point, they don't have to hand out the data to allow insurance companies to discriminate; insurance companies could set up targeted ads for Cadill…
That targeted ads might cause these kinds of problems is a side effect of this.