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My worst imagination is labelling you and selling your label to the companies they supply to, and how wrongly those companies can use that data, example: google search "prostate cancer" or searching for symptons associated with prostate cancer - label telling probable prostate cancer developing with this user - insurance companies denying insurance to you or making it too expensive. Now extrapolate this to what your searches probably tell about you or your state, and multiply by the websites you visit, the time you spend reading article/tweet/forum/post about a certain subject, where and how you comment those articles, etc, and being labeled according to their perceived likes/hates/problems about yourself.
This. I remember that one video by LTT where he tried searching for a flight and he got a way higher price on the standard browser compared to the one with no personal accounts/cookies.
If I use search engines, be it to find opinions on a topic or as you said an insurance, I want those sorted by factors like the date it's been created and maybe the reputability of the source. Not what the algorithm thinks I want to see or I should see in "its" opinion.
My worst imagination is a nefarious entity using our data to determine if we are a threat or try and categorize people for some kind of psyop manipulation.
Something like Captain America Winter Soldier but more realistic. Even things like Cambridge Analytica show it is not that far fetched.
While social media companies and amazon may not have the desire to do those things, they sure make it easier for others by greedily collecting the data.
That doesn't happen. These companies don't sell user data and never have, they make money by being the only ones with your data through targeted advertisements. It's not in their interest to sell it.