Handling Consumer Data Is Tricky
How insurers treat sensitive consumer data is a tricky issue for regulators and lawmakers. “There is a lot of concern among some regulators that the data is finding its way” into the wrong hands, said Iowa Insurance Commissioner Doug Ommen during the LIMRA 2019 Annual Conference. He said trust is the key to good business relationships between carriers and consumers.
“Companies have to own the responsibility of what data they’re going to use,” Ommen said. “Regulators will work with the carriers to rise to a level of comfort from the carrier side. If companies do this right, there won’t be a need for regulation. You, the carriers, can either do it right, or you can do it wrong.” Still, despite the potential for devastating data breaches, Ommen is cautious about using the hammer of regulation.