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Cybersecurity Research Paper

Decent Essays

Insurance Regulators Adopt Cybersecurity Rules

The growing risk of cyber attacks has prompted the National Association of Insurance Commissioners (“NAIC”) to adopt new “Cybersecurity Guiding Principles.” The principles are intended to protect consumers by providing the insurance industry with guidelines for protecting client information and identifying risks to data.

The update comes after recent cyber attacks on Anthem Blue Cross Blue Shield and Premera Blue Cross that resulted in the dissemination of private data. According to Premera Blue Cross, a recent cyber attack resulted in the breach of up to 11 million customer records, which included credit card and social security numbers, and even some medical records. Anthem’s security breach in February of this year involved approximately 80 million customers. The guidelines were created by the NAIC in an effort to address this serious and increasing problem and to “modernize” the U.S. system of state-based insurance regulation, according to John M. Huff, President of the NAIC. According to the NAIC, it is “vital” that state regulators provide “effective cybersecurity …show more content…

First and foremost, the NAIC states that regulators should mandate that insurers have systems in place to alert clients in a timely manner in the event of a breach of secure data and that all private information that is collected and stored should be properly safeguarded. It further provides that planning for an incident response by insurers, insurance producers, and other regulated entities is essential to an effective cybersecurity program. An effective cybersecurity program will include internal audits that identify material risks and address those, as well as information sharing regarding threats and vulnerabilities. Last of all, the NAIC recommends that employees of insurers and insurance producers undergo periodic training and assessment on cybersecurity

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