What data protection measures are typically expected in insurance practice?

What data protection measures are typically expected in insurance practice?

• A. No safeguards are required.
• B. Sharing data with third parties without authorization.
• C. Keeping data indefinitely without security.
• D. Reasonable safeguards such as encryption and access controls.

Answer: (D)

Protecting personal data is essential in insurance practice. Data protection means applying reasonable safeguards to protect information from unauthorized access, disclosure, or loss throughout its lifecycle. Reasonable safeguards include technical measures like encryption to protect data at rest and in transit, and strong access controls that limit who can view or modify information, along with authentication, auditing, and secure data disposal. These practices align with privacy laws and industry standards, helping to maintain confidentiality, integrity, and availability of sensitive data. The other options describe scenarios that would undermine privacy and security—no safeguards, sharing data without authorization, or keeping data indefinitely without security—so they do not fit what’s typically expected.

Protecting personal data is essential in insurance practice. Data protection means applying reasonable safeguards to protect information from unauthorized access, disclosure, or loss throughout its lifecycle. Reasonable safeguards include technical measures like encryption to protect data at rest and in transit, and strong access controls that limit who can view or modify information, along with authentication, auditing, and secure data disposal. These practices align with privacy laws and industry standards, helping to maintain confidentiality, integrity, and availability of sensitive data.

The other options describe scenarios that would undermine privacy and security—no safeguards, sharing data without authorization, or keeping data indefinitely without security—so they do not fit what’s typically expected.