Among the requirements for South Carolina insurers and agents is maintenance of “an information security program based on ongoing risk assessment.” (Image: Shutterstock)

As of January 1 of next year, insurance entities operating in the state of South Carolina will be obliged to establish and implement a cybersecurity program protecting their business and their customers from a data breach.

Insurance Journal reports that the state has become the first to enact such a measure, which means that there’s no guarantee of uniformity if other states begin to pass laws on cybersecurity—although the new law is the “model law” that was drafted by the National Association of Insurance Commissioner’s Cybersecurity Working Group. Raymond G. Farmer, South Carolina’s insurance director, chaired the working group.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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