Due to an increase in cyber threats in the insurance sector, Bill Lee the Governor of Tennessee has passed an Insurance Data Security Law that will help buyers protect their personal, medical, and financial information from falling prey to hackers.
Precisely speaking, the law strengthens the ongoing rules that the insurance carriers in Tennessee are following to protect their customer information respectively.
All these days, they have been no specific standards formulated to the insurance companies, for protecting the information of their customers.
However, the situation is going to change on a drastic note from now on as firms providing insurance should identify all sorts of threats in advance that could lead to data breaches. Also, they need to have a dedicated staff for the development and implementation of security programs based on individual risk assessments.
Now, to those businesses that offer cyber insurance, they need to investigate victimized companies in-depth and then notify the insurance commissioner about the incident. However, this law will only apply to firms that involve more than 250 Tennesseans to the core.
Suggestions to make any amendments to the law are being invited through proper channels and the law is said to come into effect from July 1st, 2021.
By the way, the latest laws will be based on the present legislation being executed by the National Association of Insurance Commissioners (NAIC).
NOTE- Tennessee Insurance Data Security Law has been in discussion for the past two years and was drafted as per the inputs given by a team of experts of NAIC as they were asked to take Cybersecurity and consumer data protection on a serious note by President Donald Trump in Oct’19.
