How can Insurance Companies Ace CCPA Compliance?

By Insurance CIO Outlook | Friday, December 06, 2019

Insurance companies need to react fast to the changing terms of regulations to stay profitable.

FREMONT, CA: The ambiguity related to the commercial use of modern technologies and consumer data is reducing with stringent regional regulations taking form. The California Consumer Privacy Act (CCPA), set to be enforced from the beginning of 2020, is one such regulation. The regulation grants consumers more control over how business organizations use their personal data and enhances the overall transparency. For the insurance firms that come under the purview of this regulation, there are a set of implications to be handled. However, there are no two ways about compliance nowadays. Thus, insurance firms have to revamp business models and modify practices to stay relevant, compliant, and profitable. Some ways in which insurance companies can address the challenge of CCPA are discussed in this article.   

• Revamp Technology Infrastructure

The process of technological transformation should not be carried out only to enhance profitability. Instead, insurance companies should think from consumers' perspective and adopt technical applications that are beneficial to consumers. In doing so, insurance providers will be able to upgrade technology while ensuring that customer data privacy and security are not compromised. Legacy IT infrastructure is proving to be increasingly inefficient in the face of current developments, and insurance players should look to invest in a tech makeover.

• Effective Data Management Solutions and Policies   

Both aspects of policies and digital solutions are essential when it comes to efficient Data Management. Insurance companies have always been data-centric. However, the surge in the volume of data is necessitating an evolved approach. Digital data management solutions that streamline the flow of customer data are integral today. However, insurance companies should be careful while opting for third-party digital solutions. Proper evaluation of vendors is essential to protect data from flowing into the wrong hands.

• Centralized Data Repository with Easy Discoverability

One of the features of CCPA is that it allows consumers to request service providers to remove their personal information. To be able to do this, insurance companies need to have a centralized data repository from which data can be accessed easily. Systematic search engines that can help insurers recover data quickly assist in preventing delays in responding to customer requests. 

With these facilities, ensuring CCPA compliance becomes less challenging for insurance players.

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