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🔐 '''Insurance Data Security Model Law''' is a model regulation adopted by the [[Definition:National Association of Insurance Commissioners (NAIC) | National Association of Insurance Commissioners (NAIC)]] in 2017 that establishes data security and breach notification standards specifically tailored for entities licensed to operate in the insurance industry, including [[Definition:Insurance carrier | carriers]], [[Definition:Insurance agent | agents]], [[Definition:Insurance broker | brokers]], and other licensees. Modeled in part on the New York Department of Financial Services Cybersecurity Regulation (23 NYCRR 500), the law creates a uniform framework that states can adopt to protect the [[Definition:Personally identifiable information (PII) | personally identifiable information]] and sensitive financial data that flows through insurance transactions.

📋 Under the model law, covered entities must develop and maintain a written [[Definition:Information security program | information security program]] proportionate to their size, complexity, and the nature of the data they handle. Key requirements include conducting regular [[Definition:Risk assessment | risk assessments]], implementing access controls and encryption, establishing incident response plans, and performing due diligence on [[Definition:Third-party service provider | third-party service providers]] that access nonpublic information. When a [[Definition:Data breach | data breach]] occurs, the licensee must notify its domiciliary [[Definition:Insurance commissioner | insurance commissioner]] within 72 hours and inform affected consumers in accordance with state timelines. Because each state must individually enact the model law — sometimes with local modifications — the resulting patchwork of requirements creates compliance complexity for insurers operating across multiple jurisdictions.

🛡️ For an industry built on trust and the exchange of highly sensitive personal, medical, and financial data, robust cybersecurity governance is not optional — it is existential. The model law gives [[Definition:Insurance regulator | regulators]] a consistent baseline for evaluating whether licensees have adequate protections in place, and it provides a credible enforcement mechanism when they do not. It has also spurred significant investment in [[Definition:Insurtech | insurtech]] security solutions, compliance automation, and vendor management platforms. Carriers that treat data security as a strategic priority — rather than a regulatory checkbox — are better positioned to earn [[Definition:Policyholder | policyholder]] confidence and to avoid the reputational and financial damage that follows a breach.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Cyber insurance]]
* [[Definition:National Association of Insurance Commissioners (NAIC)]]
* [[Definition:Data breach]]
* [[Definition:Information security program]]
* [[Definition:Personally identifiable information (PII)]]
* [[Definition:Regulatory compliance]]
{{Div col end}}

Definition:Insurance Data Security Model Law - Revision history

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