Winter 2016 | Partnering Perspectives
international level, the Financial Stability Board and the
International Association of Insurance Supervisors are setting
standards for global systemically important insurers (G-SIIs) to
promote the stability of the global financial system. The Federal
Insurance Office also has recently interfaced with EU insurance
regulators, reaching a controversial agreement to ease collateral
requirements for reinsurance transactions involving EU-based
insurers operating in the United States.
At the state level, insurers and their service providers are subject
to an array of data privacy laws modeled after the federal Gramm-
Leach-Bliley Act, data breach notification requirements, and
state unfair trade practices act (Mini-FTC Acts). These laws are
enforced by state insurance and other state regulators. Insurers
also may need to navigate federal data sharing and privacy
requirements, including those of the Fair Credit Reporting Act
and the Health Insurance Portability and Accountability Act.
Internationally, access to new sources of consumer data, and
the exchange of such data between US- and EU-based entities,
will in some cases depend on compliance with the EU’s new
General Data Protection Regulation, and the Privacy Shield, a
voluntary framework that allows for exchanges of personal
data between the EU and US.
In the midst of this complex regulatory ecosystem, the
Federal Insurance Office’s report focuses on the gaps and
inconsistencies in the state insurance regulatory system,
identifies their potential impacts on consumer protection,
and recommends a path forward.
“The commercial use of ‘Big Data,’
coupled with requirements to safeguard
the privacy of data, creates a complex