Ah, classic mistake here.

If bargaining power is asymmetric between the insurer and the buyer, then the extra information is used for additional price discrimination (eg. Its better for you if the picture is never taken regardless who you are).

So the question is: does the insurer or the insured have the bargaining power here? Competition helps, but is only one part of it.

Seeing that insurers seem very profitable in the US, a decent proxy for bargaining power, I'd argue this is a bad thing for the consumer.