New data-sharing cybersecurity rules are possibly about to hit the market as the Senate look at a new bill. The National Defense Authorization Act advanced to the Senate desk in June. However, there was mixed feedback from stakeholders. Proponents of the bill say it is essential to fund the Department of Defense and the Department of Energy. Still, those who oppose the bill, including many insurance companies, say it contains problematic language. Indeed, organizations such as the American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies have formally petitioned the Senate to reconsider the bill. Find out why, and learn everything else an insurance agent should know about NDAA.
The text of NDAA includes an outline of the proposed funding for the Subcommittee on Cybersecurity. In addition to a push for more cybersecurity resources, it calls for increased funding devoted to the Army’s development of cyber offense capabilities. As part of these efforts, the bill requires cooperation from commercial industry leaders — such as the insurance sector — in providing data that may serve the Department of Defense. This data could be used to develop policies that strengthen the DOD’s cybersecurity structure.
There are a few reasons why insurance organizations aren’t on board with the terms proposed by the NDAA. The language used in the bill is somewhat ambiguous. Additionally, leaders in the insurance industry shared their concerns that the bill will require them to submit information that breaches client confidentiality standards. This information may include details of claims involving cybercrime. Insurers are further concerned that the required data will surpass the scope of information typically collected while processing a claim.
Given the concerns raised, it’s reasonable for professionals in the insurance industry to worry about what will happen if the new NDAA bill becomes law. It’s hard to predict precisely how this would play out. Still, the enormous consequence would likely be the need for further information management systems to facilitate compliance with data collection standards. Programs like Verity offer a simple policy administration system that serves this purpose. Moreover, more insurance companies are adopting this tool thanks to the streamlined accessibility it provides.
In addition to adopting tools that make data management easier, insurance companies can prepare for the possible implementation of NDAA by anticipating how it may impact client relations. NDAA is primarily concerned with data about cybercrimes, so insurers should be prepared to collect this information from clients, categorize the data, and compile reports. Effectively organized information is an asset to insurers, regardless of whether or not NDAA passes. Verity can help your clients manage their policies through self-service and help you manage their data.
Say goodbye to outdated systems and begin looking at a solution that will provide what you need to increase productivity, decrease costs in the long run, deliver frictionless transactions, and remain competitive in today’s environment. For more information about VRC’s Verity software and to book a demo, click here or contact us at (541) 209-0700.
