Sales Management
Why You Need To Handle Customer Data With Care: It’ s The Law
By Christine Nyandat
Protection of personal data is a concept with which we are faced everywhere we turn. Data breaches and other incidents involving the unauthorized access or misuse of personal data are frequently reported in the news media. We hear of data breaches in the news and on social media. Every online service we sign up for holds us hostage until we acknowledge a lengthy and often indecipherable privacy policy.
Government agencies, private businesses, and consumer organizations constantly send out public service announcements on how to protect data. We are intimately familiar with the importance of staying informed about data privacy and security issues, and to take steps to protect our own personal data from unauthorized access and misuse.
But what is an insurance agent or broker’ s responsibility when it comes to a client’ s information? If your instinct tells you to protect that information, you are correct.
Insurance is a profession like many others, and is governed by laws and regulations. We know about the attorney-client privilege, the doctor-patient privilege, and the clergy-penitent privilege. Insurance agents, too, are bound by privilege regarding their clients’ nonpublic personal information. The obligation to maintain confidentiality is grounded in principles of trust, privacy, and protection of sensitive information.
When I first ventured into the insurance industry, data protection laws such as the Telephone Consumer Protection Act( TCPA), the General Data Protection Regulation( GDPR), and Kenya’ s Data Protection Act of 2019 seemed like abstract legal jargon. I lacked a clear understanding of their practical implications or significance. However, as I grew professionally and engaged with compliance officers, data scientists and analysts, I realized how critical understanding these laws is for protecting client privacy. I came to grasp the
We know about the attorney-client privilege, the doctor-patient privilege, and the clergy-penitent privilege. Insurance agents, too, are bound by privilege regarding their clients’ nonpublic personal information. The obligation to maintain confidentiality is grounded in principles of trust, privacy, and protection of sensitive information.
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Selling insurance policies involves collecting a wealth of sensitive information from clients. This includes personal details like names, addresses, and phone numbers; financial data such as bank account numbers and financial statements; health information like medical histories and disability records; and even property and travel information. These details are highly confidential, and customers are naturally concerned about how their information will be protected. I quickly realized that transparency and accountability were key to fostering trust.
One transformative moment came during a client consultation when a customer expressed apprehension about sharing their health information. They asked,“ How do I know my data won’ t end up in the wrong hands?” Their concern pushed me to research and understand data privacy laws thoroughly. It also made me adopt clear communication practices, ensuring that clients knew what data was being collected, its purpose, and the measures in place to safeguard it. This transparency, coupled with obtaining explicit consent via consent forms, has become the foundation of my approach to customer relationships.
You may have heard about the T-Mobile data breach exposing the personal information of over 37 million customers, the Capital One breach in 2019 that affected approximately 100 million customers, or the Equifax data breach in 2017 in which affected 147 million customers. These types of breaches can result in significant financial loss,
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