SPRINGFIELD – Illinois Insurance are required to take extra precautions to keep residents’ sensitive information safe, thanks to a new law sponsored by State Senator Napoleon Harris, III.

“No organization or business is immune to cyber threats,” said Harris (D-Harvey). “It’s important that the state’s insurance companies take the necessary steps to protect resident’s private information.”

House Bill 2130 institutes requirements and procedures for insurance companies to implement security programs and create response plans. The measure, known as the Insurance Data Security Law, also requires the insurers to submit a written certificate of compliance and notify the Illinois Department of Insurance if any cybersecurity events occur.

Harris spearheaded this measure after news of several major data breaches involving large insurers. During these breaches, potentially sensitive personal information of millions of insurance consumers were compromised.

He believes that in light of these increasing incidents, that state insurance regulators need to be reevaluating their regulations on cybersecurity and consumer data protection.

“Our hope is this new law will provide consumers with the peace of mind that their information is safe from bad actors,” Harris said. “We need to continue to institute new laws that keep our residents safe from these threats.”

House Bill 2130 goes into effect on Jan. 1, 2024.