It's not a conspiracy at all. There are plenty of cases where insurers are already pushing the boundaries, and sometimes operating in grey areas, to obtain medical information which is highly valuable to their under writing. Here's an example of the grey area...
you're browsing history could be valuable to a medical insurer. If you had a recent history of looking up a costly illness or disease then you could have your policy adjusted.
I normally find these sorts of people are the type to try and weasel their way of any difficult situations they might find themselves in.
If you've got nothing to hide then the government should **** right off and leave us alone.