The life insurance industry protects 90 million American families with financial products that reduce risk and increase their financial security. Life insurers have historically respected and maintained the privacy and security of the personal information they receive from their customers. It is part of what consumers deserve and receive as they purchase financial products from life insurers that reduce risk and increase their financial security.
Federal and state privacy laws provide a rigorous regulatory framework that enhances life insurers’ commitment to protecting the confidentiality, as well as the security, of customers’ personal information.
- life insurers’ customers are informed when information is collected about them for underwriting;
life insurers are subject to laws that limit their disclosure of consumers’ personal information;
life insurers’ customers are notified if the security of their personal information is breached.
Life insurers’ enduring commitment to safeguarding customer information helps explain the industry’s strong support for a multitude of federal and state privacy laws.
As society and work change, life insurers are committed to solutions that protect all Americans, regardless of where and how they work, their life stage, or the economic status of their household. Subjecting life insurers to laws that may be more appropriately considered for other industries will likely result in duplication or conflicts with existing requirements on insurers. This may jeopardize insurers’ ability to most effectively and efficiently serve prospective and existing customers, who may not be able to obtain coverage or have their claims under existing policies paid as quickly as they would have otherwise.
Given the complexity of the current regulatory structure, coupled with new and growing privacy and security challenges, it is essential that the consideration of the need for, and the substance of, any new privacy or security law applicable to life insurers be given careful and thoughtful consideration.
Publications and Resources
Privacy issue brief, 02/11/2019