These technology related laws, regulations and policies are crucial to our industry and team

HIPAA:

Lutkevich (2020), advises that HIPAA (Health Insurance Portability and Accountability Act) is a U.S. law enacted in 1996 to protect the privacy and security of medical information. It addresses data privacy, ensuring that healthcare providers, insurers, and others handling medical data follow strict guidelines to safeguard patient information. HIPAA was introduced to maintain continuous health insurance coverage for individuals changing or losing jobs and to standardize electronic health transactions to reduce healthcare costs. Additional goals include preventing fraud and abuse in healthcare, and improving access to long-term care services and health insurance.

HIPAA is crucial in the insurance industry because it protects sensitive health information, ensuring that personal medical data remains private and secure. This is especially important for health insurers, who handle vast amounts of confidential patient information. HIPAA compliance helps prevent unauthorized access to this data, reducing the risk of breaches and cyberattacks, which can lead to financial losses and reputational damage.

GLBAA:

According to Kagan (2022), the Gramm-Leach-Bliley Act (GLBA) of 1999 modernized the financial industry by repealing parts of the Glass-Steagall Act, which had previously prevented commercial banks from offering services like investments and insurance. By allowing banks to provide a broader range of financial services, including insurance, the GLBA enabled financial institutions to diversify their offerings. A key provision of the act requires banks to disclose their information-sharing practices to customers, enhancing transparency. This regulation is important in the insurance industry because it allows financial institutions to integrate insurance products with banking and investment services, creating more comprehensive financial solutions for consumers. At the same time, it enforces safeguards to ensure the protection of customer data and privacy.

FTCA:

According to Wikimedia (2024), the Federal Trade Commission Act (FTCA) of 1914 was established to promote business reform and protect consumers from deceptive practices, such as misleading advertisements and unfair pricing. It was part of a broader movement to regulate businesses and ensure transparency. The FTCA works in conjunction with the Sherman Antitrust Act and the Clayton Antitrust Act to safeguard competition, ensuring businesses operate efficiently, keep prices fair, and maintain high-quality standards. The Federal Trade Commission (FTC), created by the act, was granted authority to issue “cease and desist” orders to curb unfair trade practices and to penalize companies for false advertising or deceptive behavior.

In the insurance industry, the FTCA is important because it helps maintain a competitive market, preventing insurers from engaging in unfair practices that could harm consumers. By ensuring transparency in marketing and business operations, it helps protect policyholders and ensures that insurers operate fairly, fostering trust and efficiency in the industry.

ECPA:

As indicated by Galvan (2024), the Electronic Communications Privacy Act (ECPA) governs the interception, access, and disclosure of electronic communications, ensuring privacy protections for real-time and stored communications. It includes the Wiretap Act, which prohibits intercepting communications without a court order; the Stored Communications Act (SCA), which regulates access to stored emails and electronic data; and the Pen Register Act, which controls the capture of dialing and routing information. The ECPA outlines legal processes for government access to data, requiring subpoenas, court orders, or search warrants based on the type of communication being accessed. Businesses must also comply with consent requirements when monitoring employee communications, and failure to adhere to these regulations can result in severe legal penalties and reputational damage.

In the insurance industry, ECPA compliance is crucial for protecting sensitive client information, such as emails, transaction records, and personal communications. Insurers handle vast amounts of private data, and adhering to the ECPA helps maintain customer trust, ensuring privacy is safeguarded while avoiding legal and financial risks. Proper compliance with ECPA regulations is essential for managing communications responsibly and preventing unauthorized access, which could lead to lawsuits, fines, and reputational harm.

CCPA:

Marks (2019) observes that the California Consumer Privacy Act (CCPA), signed into law in 2018, grants California residents new rights regarding how their personal information is collected, used, and shared by businesses. The CCPA allows consumers to request disclosure of the specific personal information businesses hold about them, request deletion of this data, and take legal action in the event of a data breach. The law applies to businesses that meet certain thresholds, such as generating over $25 million in annual revenue, handling data from 50,000 or more consumers or devices, or deriving significant revenue from selling personal data.

The CCPA is particularly important in the insurance industry, as insurers frequently handle sensitive personal information like Social Security numbers, financial data, and employment details. Compliance with the CCPA is crucial to avoid substantial penalties, legal action, and reputational damage. Insurers must implement safeguards to ensure they meet consumer data rights requirements, protect personal information, and handle any data requests or breaches appropriately. Failure to comply can result in fines, lawsuits, and damage to consumer trust, making CCPA adherence essential for insurers operating in or dealing with California residents.