The Charleston CEO announced that “Governor Henry McMaster signed the South Carolina Department of Insurance Data Security Bill into law today. South Carolina will be the first in the nation to pass a cybersecurity bill that requires insurers to establish a strong and aggressive cybersecurity program to protect their companies and their consumers from a data breach.” The May 14, 2018 article entitled “S.C. Governor Signs Insurer Cyber Security into Law” and described that the law creates “for insurers, agents and other licensed entities covering data security, investigation and notification of breach. This includes maintaining an information security program based on ongoing risk assessment, overseeing third-party service providers, investigating data breaches and notifying regulators of a cybersecurity event.”
Here are more details about the new law:
Protects consumer information: Safe-guarding individual insurance policy holder’s personal information is a high priority in the wake of several major insurance companies’ data breaches.
Creates data security standards: Requires insurance companies to mitigate the potential damage of a data breach. The law applies to insurers, insurance agents and other entities licensed by the SC Department of Insurance.
Strong protection & quick reaction: Requires insurance companies to develop, to implement and to maintain a secure information security program, investigate any cybersecurity events and notify the SC Department of Insurance of such events immediately.
This new cybersecurity insurance law was led by “South Carolina Insurance Director Raymond G. Farmer chaired the National Association of Insurance Commissioners Cybersecurity (EX) Working Group that drafted this important and timely law.”
This new cybersecurity insurance law will be the model for other states.