Data Privacy Framework Examined by House Financial Services Committee

• By: Raaed Haddad
• March 19, 2026

This week, the House Financial Services Committee held a hearing entitled “Updating America’s Financial Privacy Framework for the 21st Century”.

The hearing, led by Chairman French Hill (R-AR), provided an overview of financial data privacy policy and examined the current patchwork of legal frameworks at the Federal and state levels. The hearing explored potential reforms to the Gramm-Leach-Bliley Act (GLBA) to ensure effective and uniform financial data privacy protections for consumers in today’s evolving financial services landscape while safeguarding innovation and promoting competition.

The GLBA requires insurance agencies, insurers and other financial institutions to disclose their information-sharing policies and to inform consumers of their ability to prevent the sharing of non-public personal information with certain nonaffiliated third parties.

A draft bill, authored by Rep. Bill Huizenga (R-MI), would make improvements to Title V of the GLBA to provide consumers with greater control over their personal financial data and

greater access to information about how their personal financial data is used. The draft legislation also provides strong federal preemption, and most importantly, leaves enforcement to state insurance regulators, protecting the state-based insurance regulatory system. Unlikely some past proposals, this draft does not include a private right of action.

Last August, the Big “I” submitted comments in response to a data privacy request for information issued by the Financial Services Committee. The comments expressed strong support for preserving the enforcement authority of state insurance officials and other functional financial services regulators, providing meaningful and properly crafted preemption, avoiding unnecessary reliance on the courts (by not including a private right of action), and creating an effective and workable data privacy system for the insurance industry and its consumers.

Last year, the Big “I” also submitted comments in response to a data privacy request for information issued by the House Energy and Commerce Committee. The Big “I” reminded Congress that the state regulatory system has worked well in this area for more than 20 years and there is no public policy rationale for abandoning it now. The Big “I” voiced its support for keeping state insurance regulators in charge of implementing and enforcing federal privacy standards and adopting any necessary sector-specific guidance within the insurance industry. Importantly, the Big “I” expressed its support for a small business exemption and will continue to make that ask of any privacy legislation coming out of the House Energy and Commerce Committee.

Understanding that both committees have an interest in data privacy, the Big “I” urges the House Financial Services and Energy and Commerce Committees to work together on potential data privacy legislation. As Congress continues to work on this important issue, the Big “I” will continue to advocate for independent insurance agents.

Raaed Haddad is Big “I” director of federal government affairs.

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