Improper Use of Databases in Insurance Sales Can Lead to Severe Penalties: Understanding Legal Regulations
Improper Use of Databases in Insurance Sales Can Lead to Severe Penalties The importance of databases (DB) in insurance sales is growing, but indiscriminate use can lead to severe legal penalties. With the implementation of the Financial Consumer Protection Act (FCPA) in 2021 and the amendment of the Personal Information Protection Act in 2023, regulations on DB collection and use have been strengthened. This article highlights key legal aspects that insurance agents and general agencies (GAs) must be aware of to use DBs correctly. In the insurance industry, DBs (personal information) have long been a critical sales tool. Insurance agents and GAs prefer high-quality DBs as they can significantly increase productivity, leading to high efficiency and income. By receiving new DBs daily and conducting phone consultations and face-to-face (TA) sales, agents can achieve remarkable results. However, using DBs with unclear sources or beyond the agreed consent can lead to serious legal i...