In 2014, the NAIC formed a Cybersecurity Task Force to undertake an ambitious agenda of work products, following the disclosure of a massive security breach at the health insurer Anthem. The Task Force developed a set of regulatory principles, proposed a “Bill of Rights” for consumers, and set out to develop a model law addressing data security issues for insurers and other regulated entities. The Task Force also enhanced financial exam standards to focus on cybersecurity issues and developed a supplement to the annual statement to collect information on insurers’ writing of cybersecurity insurance.
The NAIC Cybersecurity Task Force development of both data security standards and security breach protocol measures has involved addressing many issues including: 1) the breadth of definitions regarding personal information and cybersecurity breach event; 2) the inclusion of a harm trigger to determine when notice to regulators and consumers is required; and 3) the obligation to ensure proper measures and practices of third-party service providers.
NAMIC has engaged in every initiative undertaken by the Cybersecurity Task Force by continually stressing the need for regulatory measures to be risk-based and scalable to match the needs and abilities of entities of varying size and complexity, and to be workable from a compliance perspective.
June 19, 2020 Enacted HB 614 substantially adopts the provisions of NAIC’s Insurance Data Security model law. Read more
June 18, 2020 The NAIC Property and Casualty Insurance (C) Committee met by conference call on June 10. As reflected on its agenda, the meeting covered several topics including risk retention groups, the private passenger auto insurance study, and... Read more
June 18, 2020 The NAIC Artificial Intelligence Working Group exposed on June 15 a version of its draft principles concerning artificial intelligence usage by insurers. The direction of the document changed significantly on the last call held on... Read more
June 18, 2020 The Statutory Accounting Principles (E) Working Group met on June 15 to vote on a proposal to determine how insurance companies are to account for premium refunds issued in response to COVID-19. Ultimately the working group determined that all... Read more
June 18, 2020 The NAIC Casualty Actuarial and Statistical (C) Task Force exposed on June 12 for final comments its latest draft of a white paper on predictive analytics and modeling used in property/casualty homeowner and... Read more