Mastering the Art of Data Governance: Regulatory Compliance
3 min readDec 5, 2023
To steer your organization toward data governance excellence, we present a comprehensive roadmap comprised of sixteen key milestones. Each step will take you closer to harnessing the full potential of your data while ensuring regulatory compliance and data security
Step #2: Familiarize yourself with the relevant data governance regulations and compliance requirements in the insurance industry. Ensure that your data management practices align with these regulations.
Overview of the relevant data governance regulations and compliance requirements in the insurance industry:
Data Governance Regulations
- General Data Protection Regulation (GDPR): The GDPR is a regulation in EU law on data protection and privacy in the European Union (EU) and the European Economic Area (EEA). It also addresses the transfer of personal data outside the EU and EEA areas.
- Health Insurance Portability and Accountability Act (HIPAA): HIPAA is a U.S. federal law that establishes national standards for the protection of health information. It applies to all entities that handle or transmit individually identifiable health information (PHI).
- Insurance Data Security Act (IDSA): The IDSA is a U.S. federal law that requires insurance companies to implement appropriate security measures to protect non-public personal information (NPI).
- Solvency II Directive: The Solvency II Directive is a European Union directive on the solvency of insurance companies. It requires insurance companies to hold sufficient capital to cover their risks.
- International Financial Reporting Standards (IFRS): IFRS are a set of accounting standards that are developed and maintained by the International Accounting Standards Board (IASB). They are intended to provide a common global language for business affairs so that the financial statements of companies can be readily understood and compared internationally.
Data Management Compliance Requirements
- Data Quality: Insurance companies must ensure that their data is accurate, complete, and consistent. This is important for underwriting, pricing, and customer service.
- Data Security: Insurance companies must implement appropriate security measures to protect their data from unauthorized access, disclosure, use, modification, or destruction.
- Data Retention: Insurance companies must retain their data for the appropriate period of time. This is required by law and is important for regulatory compliance and litigation.
- Data Access: Insurance companies must give individuals access to their personal data. This is required by law and is important for transparency and accountability.
Aligning Data Management Practices with Regulations
Insurance companies can align their data management practices with regulations by:
- Developing a data governance framework: A data governance framework should outline the roles and responsibilities for data management, as well as the policies and procedures for data collection, use, storage, and disposal.
- Conducting regular data quality checks: Insurance companies should regularly check their data for accuracy, completeness, and consistency.
- Implementing appropriate security measures: Insurance companies should implement appropriate security measures to protect their data from unauthorized access, disclosure, use, modification, or destruction.
- Developing a data retention policy: Insurance companies should develop a data retention policy that outlines the appropriate retention period for different types of data.
- Training employees on data privacy regulations: Insurance companies should train their employees on data privacy regulations, including their obligations under the GDPR, HIPAA, and IDSA.
By following these guidelines, insurance companies can ensure that their data management practices are compliant with relevant regulations and protect the privacy of their customers.
