AIA Says Clinton’s Privacy Plan “Premature”

The American Insurance Association has taken a stance against President Clinton’s recent privacy proposal, calling it “decidedly premature.”

“The administration is proposing this ‘plan’ without the facts needed to make informed decisions. Under the law enacted last year, his own Treasury Department is charged with studying the issue with a focus on affiliate sharing practices. The results of these studies will enable Congress and regulators to make decisions that balance the consumer benefits derived from information sharing with the consumer’s need for privacy,” the AIA statement said.

“Consumer privacy in the insurance industry is already regulated by the states as well as some federal rules. Under last year’s privacy legislation alone, the financial services industry, including insurers, will be sending out 2.5 billion notices on information sharing and consumer options.”