You wrote:

you know Allstate isn't going to be looking for social media information that HELPS your claim.

But from the article:

As for use cases for social media during the insurance claims process, Carpe Data cited two examples. The first one was where a customer was paralyzed. A social media search helped confirm the information more quickly through pictures of the customer in a wheelchair, which ultimately led to the claim being settled and paid out faster.

It's presumably in Allstate's interest to identify fraud, but also to process claims as efficiently as possible, no?