Accounting Standard Updates
Data Privacy Protection Among Priorities on NAIC Agenda for Spring Meeting
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As the NAIC prepares for its National Spring Meeting in Louisville starting March 21, anticipation is high for one of the organization’s key priorities for 2023 – privacy protection and the emerging state laws intended to protect consumers of insurance services.
Data Privacy Protections
The Privacy Protections (H) Working Group will meet at the Louisville, KY, event to accomplish two tasks:
- Draft a new Privacy Protections Model Act to replace previous NAIC models, and
- Discuss the development of a research paper on state insurance privacy protections regarding the collection, data ownership and use rights, and disclosure of information gathered in connection with insurance transactions that states can use to support their implementation efforts related to adopting the new Privacy Protections Model Act.
To date, 21 states have enacted Insurance Data Security laws based on NAIC model legislation, and similar legislation is pending in three additional states. One state (New York) has enacted its own data security law that impacts the insurance industry.
Data security has generally been a major concern of the insurance industry and state legislators for more than a decade, but as artificial intelligence (AI) and machine learning technologies become more sophisticated and accessible, industry regulations and public policy must adapt to new risks and realities.
The Privacy Protections (H) Working Group is one of five working groups within the NAIC’s Innovation, Cybersecurity & Technology (H) Committee, formed in 2021. The other four working groups are:
- Big Data & Artificial Intelligence
- Innovation & Technology in Regulation
The discussion of data security will take place in the context of the NAIC’s larger focus on its six key priority areas for 2023:
- Climate Risk/Natural Catastrophes and Resiliency
- Data/Artificial Intelligence, Cybersecurity, and Innovation
- Insurer Financial Oversight and Transparency
- Long-Term Care Insurance (LTCI)
- Marketing of Insurance Products
- Race and Insurance/Protection Gaps and Financial Inclusion
View agendas and learn how you can participate remotely in the NAIC National Spring Meeting, which is a hybrid event.
JLK Rosenberger will attend the National Spring Meeting in Louisville, and we will report back to you afterward about any specific initiatives introduced.
We’re Here to Help
If you have questions about the NAIC meeting next week or privacy security for your insurance entity, JLK Rosenberger can help. Call us at 818-334-8645, or click here to contact us. We look forward to speaking with you soon.