A privacy notice is a disclosure document that explains how an insurance company, agency, or financial institution collects, uses, shares, and protects a customer's personal information. Required under laws such as the Gramm-Leach-Bliley Act and various state privacy statutes, the notice describes categories of data collected, purposes for processing, types of third parties with whom information is shared, and the customer's rights to opt out of certain sharing. Privacy notices are provided at policy issue and periodically thereafter, often annually, and must be written in clear, understandable language. They form a key part of an insurance organization's compliance program and help build trust by demonstrating responsible handling of sensitive information like health, financial, and identifying data.

In everyday operations, privacy notices accompany policy delivery packets, account openings, and electronic consent processes. Agencies and carriers also post them on websites and client portals for easy access. Advisors may receive questions from clients about how data is shared with reinsurers, vendors, or marketing partners and can refer to the privacy notice for specifics. Compliance teams periodically update notices to reflect new regulatory requirements, data practices, or third-party relationships. During audits and regulatory exams, privacy notices and related policies are reviewed to confirm that stated practices match actual operations. Clear, accurate privacy notices support transparency and can reduce client concerns about data security and misuse.