Establishes cybersecurity and informational security standards to safeguard insurance company customer information
If passed, HB 2316 will create exclusive state standards governing the data security practices of licensees. This bill provides an organized framework for the investigation of cybersecurity incidents, including the obligation to notify the director within three business days following an event that poses risk to consumer data. The proposed law outlines the necessity for licensees to develop and maintain comprehensive information security programs tailored to their size, complexity, and the sensitivity of the information entrusted to them. These measures are aligned with the need to safeguard consumer information more effectively in the face of growing cyber threats.
House Bill 2316, titled the 'Insurance Data Security Act', aims to amend Chapter 375 of the Revised Statutes of Missouri by introducing comprehensive standards for data security specific to insurance companies. The bill establishes requirements for licensees regarding the protection of non-public consumer information, mandatory investigations of cybersecurity events, and timely notifications to the Department of Commerce and insurance in the event of a data breach. Significantly, the legislation is intended to heighten consumer protection against breaches of non-public information held by insurance companies.
While HB 2316 has garnered support as a necessary step to bolster data security affected by increasing cybersecurity threats, it may raise concerns regarding the burdens it places on smaller insurance providers. Critics may argue that regulatory compliance could disproportionately impact smaller insurance entities, resulting in higher operational costs. Additionally, there are discussions concerning whether the standards implemented might be stringent enough to address the rapid evolution of cyber threats, and whether they will effectively deter data breaches or satisfy consumer protection advocates.