South Carolina has become the first state in the nation to pass a cyberscurity law which covers insurance companies who do business in the state.
Governor Henry McMaster signed the bill last week.
Department of Insurance director Ray Farmer said more than 120 million U.S. citizens have had their personal health insurance information compromised due to security breaches at several large companies. He believes the law will be a model for other states to adopt as data security becomes an issue for every industry.
“It provides some consumer protection to further help safeguard that extremely important and private information,” he said. “It requires insurance companies to beef up their data security.”
Farmer chaired the National Association of Insurance Commissioners Cybersecurity Working Group that drafted the law. [Read more…]