https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ANonpublic_information_%28NPI%29 2026-06-13T19:59:38Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Nonpublic_information_(NPI)&diff=6991&oldid=prev 2026-03-10T05:03:02Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>🔐 &#039;&#039;&#039;Nonpublic information (NPI)&#039;&#039;&#039; refers to personally identifiable financial, health, or other sensitive data about an individual that is not publicly available and that an [[Definition:Insurance carrier | insurance company]] collects, maintains, or processes in the course of its business. Within insurance, NPI encompasses a broad range of data — [[Definition:Policyholder | policyholder]] Social Security numbers, bank account details, [[Definition:Claim | claims]] histories, medical records gathered during [[Definition:Underwriting | underwriting]], and even driving records obtained for [[Definition:Auto insurance | auto]] rating. The term carries specific legal weight under the [[Definition:Gramm-Leach-Bliley Act (GLBA) | Gramm-Leach-Bliley Act]] (GLBA) and the [[Definition:NAIC Insurance Data Security Model Law | NAIC Insurance Data Security Model Law]], both of which impose obligations on insurers to safeguard this information.<br /> <br /> 🛡️ Protecting NPI requires insurers to implement comprehensive [[Definition:Information security program | information security programs]] that include administrative, technical, and physical safeguards. Under the NAIC Model Law — adopted in whole or in part by a growing number of states — licensed insurers, [[Definition:Managing general agent (MGA) | MGAs]], [[Definition:Third-party administrator (TPA) | third-party administrators]], and other regulated entities must conduct [[Definition:Risk assessment | risk assessments]], deploy [[Definition:Encryption | encryption]] and access controls, establish [[Definition:Incident response plan | incident response plans]], and notify regulators within specified timeframes following a [[Definition:Data breach | data breach]]. Similar requirements flow through contractual obligations: carriers routinely require their [[Definition:Vendor | vendors]], [[Definition:Coverholder | coverholders]], and [[Definition:Claims adjuster | claims service providers]] to demonstrate compliance with NPI protections as a condition of doing business.<br /> <br /> ⚖️ Failure to properly handle NPI exposes insurance organizations to regulatory penalties, [[Definition:Litigation | litigation]], and significant reputational damage — but the implications extend further into product and market strategy. The proliferation of [[Definition:Cyber insurance | cyber insurance]] has made insurers acutely aware that they are both protectors and potential targets: they underwrite data breach risk for their clients while simultaneously holding vast repositories of sensitive data themselves. [[Definition:Insurtech | Insurtechs]] leveraging [[Definition:Data analytics | advanced analytics]], [[Definition:Artificial intelligence (AI) | AI-driven underwriting]], or [[Definition:Telematics | telematics]] face particular scrutiny, as their business models often depend on ingesting and processing high volumes of NPI. Robust [[Definition:Data governance | data governance]] around nonpublic information is therefore not just a compliance exercise — it is a foundational requirement for maintaining consumer trust and regulatory standing in a data-intensive industry.<br /> <br /> &#039;&#039;&#039;Related concepts&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Gramm-Leach-Bliley Act (GLBA)]]<br /> * [[Definition:NAIC Insurance Data Security Model Law]]<br /> * [[Definition:Data breach]]<br /> * [[Definition:Data governance]]<br /> * [[Definition:Cyber insurance]]<br /> * [[Definition:Information security program]]<br /> {{Div col end}}</div>

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