
With cyber threats and rising identity thefts, it is essential to protect your privacy. In 2024, a major data breach hit one of the top health insurance companies. The first thing any insurance company needs before letting you buy insurance is your data. They need your name and contact details, at the very least. At the same time, insurers need more personal data about you to customize your coverage and plan. Therefore, knowing your rights and understanding your duties when buying health insurance is essential.
So, how do we balance sharing just enough data and ensuring it is kept safe? Let's learn more about protecting your data when buying insurance online.
Understanding the Types of Information Shared
When applying for health insurance, you are asked to fill in personal, medical, and financial information that contains sensitive data. All these require protection against misuse. Generally, you may need to provide the following data:
- Personal Information: This is general information that identifies you. Your name, date of birth, and gender are basic information that an insurer needs. Most insurers also ask for a mobile number to contact you quickly.
- Medical Information: Insurers collect personal data such as pre-existing health conditions, medical history, and information about your treatments. They need this data to customize your coverage and determine the policy premiums.
- Financial Information: Any data you give out related to your financial condition is financial information. This includes your employment status, income, and other data related to your money. Such information is commonly called sensitive data. The insurer may need this data depending on the type of insurance you apply for.
Risks Involved in Sharing Sensitive Information
Recently, a security vulnerability in an online platform caused a security lapse with a life insurance company’s application. As digital platforms rely on technology and software, security vulnerabilities are inevitable. Knowing the risks involved in sharing your data will help protect your privacy. Some of the most common risks are:
- Data Breaches: Cyber thieves can attack the insurer's database to expose your personal information for committing fraud or reselling on the dark web. For example, a data leak may expose your medical record or other financial information. This can result in identity theft and fraudulent transactions under your name.
- Phishing Scams: Imagine you receive a link and quickly click on it without thinking. Later, you check your phone and find that your personal information or money is gone. It’s important to know about phishing scams when dealing with insurance companies to keep your information safe and secure.
- Identity Theft: Some people can use your identity to access your personal information, including your insurance details. Identity theft is a common way thieves steal your information, so it’s crucial to be aware of different scams.
- Third-Party Access: Sometimes, other companies, such as business partners or marketing firms, can access your information through your insurer. This can expose you to risks, such as receiving unwanted marketing messages and using your information without permission.
Tips to Protect Your Privacy While Buying Insurance
One must provide personal and financial details while buying insurance. It is important to verify the insurer who collects data while opting for health insurance. This will allow you to be aware of your provider and to trust the chosen option. The following tips can help:
- Choose an insurance company with strong privacy policies.
- Ensure they clearly explain how your personal, medical, and financial information is used.
- Verify if they comply with the Personal Data Protection Bill for data handling.
- Opt for companies with websites starting with HTTPS for secure data transmission.
- Look for two-factor authentication to enhance account security.
- Read the privacy policy thoroughly to understand data-sharing practices.
- Confirm they share data only for claims processing or underwriting, not for marketing purposes.
- Provide only the necessary information required for applications or quotes.
- Regularly monitor your credit and medical reports for unusual activity.
Conclusion
It is important to safeguard your privacy while applying for health insurance. You should be aware of what information to share and provide truthful details whenever you plan on opting for insurance online. While the necessary details are important, one should not provide any additional data. It is advised to research more about the insurer and choose the best insurance plan out of all the options available.
Featured image by Freepik.
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