New data security standards for the insurance industry passed the Wisconsin State Senate on June 9, 2021, on a voice vote.
NAIFA strongly supported this bipartisan bill, based on a national model, to provide regulatory uniformity and to protect consumer information.
Senate Bill 160 includes exemptions for small businesses that were supported by NAIFA-WI. The Senate also added an amendment that our Wisconsin members suggested, providing an exemption for securities brokers that are already subject to cybersecurity regulations by FINRA.
The bill requires licensees to develop and maintain data security programs and sets requirements for notifications of consumers and the state if a data breach occurs. Exemptions are provided for businesses with less than $10 million in year-end assets, less than $5 million in gross annual revenue or less than 50 full-time employees.
An Assembly committee has also recommended the legislation. It is likely to be scheduled soon for a vote on the Assembly floor and then will go to the Governor for his signature.
Thank you to state Sen. Patrick Testin (R-Stevens Point) and state Rep. Kevin Petersen (R-Waupaca) for their work authoring and advocating for this important bill, as well as to the Office of the Commissioner of Insurance.