SC Gov Signs Insurance Data Security Bill
South Carolina Gov. Henry McMaster (R) signed the South Carolina Department of Insurance Data Security Bill into law. South Carolina will be the first in the nation to pass a cybersecurity bill that requires insurers to establish a strong and aggressive cybersecurity program to protect their companies and their consumers from a data breach. Officials say this law will be a model for other states to adopt as data security becomes an issue for every industry.
South Carolina Insurance Director Raymond G. Farmer chaired the National Association of Insurance Commissioners Cybersecurity (EX) Working Group that drafted the law. “South Carolina is now the first in the nation to pass a comprehensive data security insurance law,” said Farmer. “This sets South Carolina apart and shows we are dedicated to keeping insurance information safe.”
The law creates rules for insurers, agents and other licensed entities covering data security, investigation and notification of breach. This includes maintaining an information security program based on ongoing risk assessment, overseeing third-party service providers, investigating data breaches and notifying regulators of a cybersecurity event.