At the Fall 2022 National Meeting of the US National Association of Insurance Commissioners ("NAIC"), the Privacy Protections (H) Working Group ("PP Working Group"), a subgroup of the Innovation, Cybersecurity, and Technology (H) Committee ("H Committee") met. Below are highlights from the meeting.

The PP Working Group met on December 12, 2022, and heard an update on state privacy legislation. NAIC staff reported that there has been no significant movement in state privacy legislation since the Summer 2022 National Meeting.1

The PP Working Group also reported on the progress of its two main projects:

  1. Its draft of the Insurance Consumer Privacy Protection Model Law (#674), which will replace the NAIC's Insurance Information and Privacy Protection Model Act (#670) and the NAIC's Privacy of Consumer Financial and Health Information Regulation (#672). The PP Working Group expects to expose the draft at the end of January 2023 for a 60-day comment period. Comments received are expected to be discussed in an open session at the NAIC Spring 2023 National Meeting in March 2023.
  2. Its reference document (formerly referred to as a "white paper") explaining why the working group is proposing to make changes to the existing model law and regulation. The reference document is expected to be released in 2023.

Finally, the PP Working Group heard two presentations on general market practices regarding the use of personal information during the insurance process-a consumer perspective from Matthew Smith of the Coalition Against Insurance Fraud ("CAIF") and a company perspective from Scott Fischer of Lemonade Insurance Company. Notably, Mr. Smith's presentation focused on the results of "The Ethical Use of Data to Fight Insurance Fraud," a CAIF study on the ethical use of data to fight insurance fraud. A wide range of topics were raised during the presentations and the subsequent question-and-answer session, including:

  • A desire for a uniform but insurance-tailored regulatory framework;
  • The need for clear and concise consumer disclosures;
  • Correlating the level of protection and consumer control to the various types of data and data use categories;
  • Concerns about data that is not originally sensitive but when grouped with other data can become sensitive;
  • Data minimization;
  • Data sharing with third parties;
  • Use of synthetic data; and
  • Use of telematics data.

Conclusion

Release of the draft model law will significantly progress the work of the PP Working Group and undoubtedly lead to signifcant debate on various issues related to data privacy as regulators work to develop a model regulatory framework for personal data use in insurance. We will continue to track and report on these developments.

To view additional updates from the US NAIC Fall 2022 National Meeting, visit our meeting highlights page.

Footnote

1. For highlights from the PP Working Group during the Summer 2022 National Meeting, see our Legal Update "US NAIC Summer 2022 National Meeting Key Takeaways: Innovation, Cybersecurity, and Technology," August 23, 2022.

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.