In an era where cyber threats and data breaches are on the rise, the National Privacy Commission (NPC) and the Philippine Insurance Commission (IC) have issued a Joint Advisory emphasizing the critical importance of data privacy and security in the insurance sector. As a highly regulated industry handling vast amounts of Sensitive Personal Information (SPI), insurers must adopt Privacy-Enhancing Technologies (PETs) and proactive compliance measures to protect policyholders’ data while maintaining business integrity.
Legal Framework: The Foundation of Data Privacy Compliance
The Joint Advisory is grounded in three key legal instruments:
- 1987 Philippine Constitution – Guarantees the protection of privacy rights.
- Data Privacy Act of 2012 (DPA) – Establishes data protection obligations for all organizations handling personal data.
- Amended Insurance Code of the Philippines (RA 10607) – Regulates insurance providers and mandates ethical data handling practices.
Together, these laws reinforce the responsibility of insurance companies to uphold privacy, security, and human dignity when processing policyholders' information.
Who is Affected?
The advisory applies to all entities regulated by the IC, including:
- Life and non-life insurance providers
- Pre-need companies
- Health Maintenance Organizations (HMOs)
- Mutual benefit associations
- Insurance agents and brokers
- Adjusters and intermediaries
Privacy-Enhancing Technologies (PETs) in Insurance
To meet regulatory expectations and protect personal data, insurance companies must implement advanced PETs, including:
1. Data Obfuscation
Techniques:
- Anonymization – Removes identifiable elements from data sets.
- Pseudonymization – Replaces personal identifiers with artificial values.
- Differential Privacy – Adds noise to data to prevent individual identification.
2. Encrypted Data Processing
Techniques:
- Homomorphic Encryption – Allows encrypted data processing without decryption.
- Multi-Party Computation – Enables collaborative computations while keeping data private.
3. Federated Analytics
Techniques:
- Federated Learning – AI models are trained across decentralized data sources without sharing raw data.
- Distributed Analytics – Allows data insights while preserving privacy.
4. Data Accountability Measures
Techniques:
- Threshold Secret Sharing – Splits sensitive data into multiple parts to prevent unauthorized access.
- Personal Data Stores (PDS) – Enables individuals to manage and control their personal information securely.
Why This Matters: The Role of PETs in Insurance Data Protection
Insurance companies are prime targets for cybercriminals due to the wealth of sensitive customer information they hold. The adoption of PETs helps insurers:
- Mitigate cybersecurity risks and prevent data breaches.
- Ensure compliance with local and international data privacy regulations.
- Maintain operational efficiency while implementing strict security protocols.
- Preserve consumer trust, which is essential for business longevity.
Next Steps for Insurance Providers
To align with the NPC and IC’s recommendations, insurance providers must:
1. Conduct Privacy Impact Assessments (PIAs)
Before integrating PETs, insurers should conduct Privacy Impact Assessments (PIAs) to evaluate:
- Potential risks and vulnerabilities.
- The effectiveness of existing security controls.
- Compliance with regulatory requirements.
2. Strengthen Data Breach Notification and Security Protocols
Organizations must ensure adherence to breach notification requirements and implement:
- 24/7 incident monitoring and response mechanisms.
- Automated alerts for potential data security threats.
- Compliance audits to assess ongoing security effectiveness.
3. Evaluate PETs for Business Compatibility
Companies should select PETs based on:
- Business needs – Ensuring alignment with operational goals.
- Technical compatibility – Seamless integration with existing systems.
- Industry best practices – Following international data privacy standards.
Resecurity: Enhancing Data Privacy and Compliance in Insurance
Resecurity offers cutting-edge cybersecurity and privacy solutions that help insurance providers strengthen their data protection frameworks. Through its AI-driven risk monitoring, threat intelligence, and advanced encryption technologies, Resecurity enables insurers to:
- Detect and mitigate cybersecurity threats before they escalate.
- Implement PETs effectively to enhance customer data privacy.
- Ensure compliance with regulatory standards through automated monitoring and reporting tools.
- Safeguard sensitive personal information with state-of-the-art encryption and fraud detection systems.
By partnering with Resecurity, insurance companies can proactively address data privacy risks and maintain compliance with NPC and IC regulations, ensuring both regulatory adherence and customer trust.
Building a Culture of Privacy and Security
Beyond technology, insurance firms must foster a data privacy-first culture by:
- Training employees on best practices in data security.
- Regularly updating policies to reflect evolving threats.
- Ensuring transparency in how customer data is handled.
Conclusion: Strengthening Trust in the Insurance Industry
As cyber threats continue to evolve, privacy and security are no longer optional—they are fundamental to protecting customer trust and ensuring compliance. The NPC and IC's Joint Advisory underscores the need for insurance providers to implement cutting-edge PETs and proactive data protection strategies. By doing so, insurers can enhance security, meet regulatory obligations, and foster long-term customer confidence.
For more information on data privacy in the insurance industry, visit: Philippine Insurance Commission and National Privacy Commission
