How should insurers handle consumer privacy according to regulations?

Insurers are required to establish standards for the collection and use of information, which helps protect consumer privacy. This means implementing policies and procedures that delineate how personal data is collected, stored, used, and shared. By establishing clear standards, insurers can ensure that they are compliant with privacy regulations, such as the Gramm-Leach-Bliley Act, which mandates financial institutions, including insurance companies, to safeguard consumers' nonpublic personal information.

Such standards typically include obtaining consumers’ consent before sharing their personal information, providing notice about privacy practices, and allowing consumers access to their own data. This approach not only protects consumer rights but also builds trust between insurers and their clients. Overall, by adhering to these standards, insurers fulfill their regulatory obligations and contribute to a more secure and respectful handling of consumer data.