The National Association of Mutual Insurance Companies (NAMIC) has grave concerns surrounding the proposed American Privacy Rights Act (APRA), saying the “rushed” data privacy legislation could result in bigger problems for consumers while failing to recognize the realities of insurance and financial services.
Commenting on the Act’s initial form, NAMIC senior vice president of federal and political affairs Jimi Grande (pictured) asserted: “The draft of the American Privacy Rights Act doesn’t live up to the intent behind the bill.
“It creates a national standard for data, then completely undermines it with carve-outs for assorted state laws. It delegates enforcement to plaintiffs’ attorneys through an expansive private right of action, and then goes a step further by banning arbitration agreements that can resolve conflicts without costly litigation.
“The focus of the bill may have been ‘Big Tech’, but every American will see costs continue to rise without seeing any meaningful additional protection.”
In Grande’s view, what the American Privacy Rights Act does is ignore the state-based system of insurance regulation and the Congressional work being done to update existing financial privacy rules.
Grande declared: “While it would be nice if we lived in a universe where a one-size-fits-all approach to regulating data security and privacy was possible, the reality is not all data is the same.
“The House Financial Services Committee devoted a significant amount of time and effort in recent years to examining data privacy issues and how the existing rules under the Gramm-Leach-Bliley Act can be modernized for today’s economy.
“This more measured and tailored approach yielded better legislative results than the rushed APRA and should be the model if Congress wants to get serious about a comprehensive national data security and privacy standard.”
The American Privacy Rights Act is set to be considered by the House Energy and Commerce Committee.
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