As insurers collect more data about consumers, honoring their privacy has taken priority. The California Consumer Privacy Act (CCPA) is an example of legislation making it mandatory for companies to be more transparent about how they collect, use, and disclose personal information.
CCPA, effective Jan. 1, 2020, created the newest consumer rights relating to the access to, deletion of, and sharing of personal information that is collected by businesses. It gives nearly 40 million people in California the strongest data privacy rights in the country.
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Why is this important? All U.S. insurance carriers and agencies will ultimately be impacted, as more states are sure to follow California in implementing consumer privacy laws.
But there’s still a lot of confusion with this ground-breaking data privacy law. While I’m certainly not an expert or a lawyer, I’ve spent my career in insurance and have spoken to a number of carriers about how they are responding. Below is a high-level overview of the CCPA based on research and discussions I’ve had.