TCPA/GDPR/CCPA Basics for B2B Outreach in Insurance

Insurance companies handle a large amount of information related to personal, financial, and health. They obtain this data by generating leads through marketing activities. But strict regulations govern how companies can market their services.

Your company needs to follow the Telephone Consumer Protection Act, California Consumer Privacy Act, General Data Protection Regulation, etc, if it uses telemarketing services. These laws protect consumers from unwanted calls and messages. You have to pay heavy fines and lose customers’ trust if you don’t follow these laws.

In this blog, we’ll explore more about the rules for B2B outreach compliance, channel playbooks, insurance-specific pitfalls, and more.

The Rules You Must Know: TCPA, GDPR/ePrivacy, CCPA, CAN-SPAM

Business privacy policy requirements have transformed in recent years and major changes are now in effect. However, many B2B companies think they are free from privacy laws, which can cause serious legal problems. That’s why B2B data privacy rules are necessary to understand and protect your business while building trust with clients.

Data privacy primarily focuses on the policies and regulations that control how your business can collect, store, and process business data. That’s why you have to make sure you follow privacy laws and ethical standards when generating commercial insurance leads.

Use a clear, secure, and compliant data practice to protect sensitive information. You can set the standards of data privacy with the Telephone Consumer Privacy Act (TCPA), the California Consumer Privacy Act (CCPA), the General Data Protection Regulation (GDPR), etc.

TCPA Compliance Guide for Calls and Texts

The Telephone Consumer Protection Act (TCPA) is the foundational federal law regulating telemarketing and outbound communications. It has governed how B2B businesses can contact consumers using auto-dialled calls, prerecorded messages, text messages, etc.

The goal of TCPA is to protect consumers from unwanted or abusive communications. Compliance is complex when it comes to practice. New Federal Communications Commission (FCC) rules (one-to-one consent or canceling consent), court decisions, and state-level laws have constantly transformed how the TCPA is explained and applied.

The TCPA Act 47 U.S.C § 227 outlines the laws, penalties, and exceptions for how your insurance company and representatives can make B2B outreach, like phone calls to consumers. It also involves solicitation regulations for sending business text messages to consumers.

Who Does the TCPA Apply to?

It applies to any US citizens, businesses, common carriers, or entities making outbound calls or sending marketing messages.

It is also in effect when your called party or other recipient of the solicitation is located in the United States, even if the person making the solicitation is located outside the U.S.

TCPA Compliance for Commercial Phone Calls and Text Messages

These guidelines are applicable to all businesses, including commercial insurance and entities that are associated with sending commercial calls and text messages.

1. Sales agents can not send automated, pre-recorded, or AI-generated calls and texts to the prospects’ cell phone or residential telephone number without an Established Business Relationship and Prior Express Written Consent.
2. They cannot call or text consumers before 8 am or after 9 pm (in the recipients’ local time zone).
3. Sales representatives cannot call or text anyone on the National Do Not Call registry. They must maintain an internal Do Not Call List of numbers that shouldn’t be contacted for five years.
4. They may not use ATDS all at once to call two or more phone lines at the same business. It basically means no multi-line dialing.
5. Any entity placing solicitation calls or sending messages must provide:

• The names of the business
• Contact information of the business they’re making the call on behalf of
• A verifiable caller ID that is free without the use of a caller ID blocking service

1. Your company, while sending commercial messages, must provide consumers with an opt-in agreement to get consumer Prior Express Written Consent. It must state the purpose, frequency, terms, and conditions of the commercial message.
2. Consumers should receive an opt-out option for ending the receipt of commercial texts, like an automated “STOP” response trigger, which is a popular method.

Consent Types, AI/Prerecorded, Autodialer, and Proof

Consent is a major responsibility for businesses when it comes to B2B outreach, where you must comply with global regulations. It may come as a challenge for insurance companies, as data collection is constantly growing, and keeping track of every customer consent can be difficult.

It is an important aspect of data privacy that involves obtaining, managing, and documenting user agreement for data collection and use. You can get consent from users in many forms, like explicit, implicit, legitimate, etc, with its own implications for data processing.

Explicit Consent

It is the most clear form of consent. Here user is presented with a decision on whether they authorize the collection, use, or disclosure of their personal information before data is collected.

It is necessary under the strict data privacy law, the General Data Protection Regulation (GDPR). Your Users have to confirm their agreement through a clear affirmative action, like clicking on the “I accept” button after being presented with the terms and conditions.

Implicit Consent

Your audience can provide their contact information without stating that they want to be on the SMS or email list. That’s when their interest is understood. For example, sending a marketing message after the client has made a purchase of an insurance product. It is a lower standard than explicit consent and is rarely permitted by GDPR.

Legitimate Interest

It is generally a lawful basis for contacting prospects without explicit consent. It is only valid for business-to-business communication. It is the most flexible consent of the GDPR’s lawful bases for processing personal data. Usually, you can apply it when the company will use personal data in a way that the data subject would expect.

Opt-out Consent

It is the ability to decline consent at any point. Under the U.S. CAN-SPAM Act, the company can send commercial emails without prior consent. This consent option offers the recipients a clear way to opt out of future messages. This is an exit from the “opt-in” model used in Europe and Canada.

Consent for AI/Pre-recorded and Autodialer

Prior express consent is enough for commercial informational calls or texts when using a prerecorded voice. You can get this consent when a consumer has provided their number to know more about the insurance service.

This consent should be a written agreement and must have the consumer’s signature, which can be electronic.

While using an auto-dialer to place an outbound call to residential lines, you do not need consent.

Proof: Recording and Documenting Insurance Outbound

Recording conversations with insureds can provide critical documentation in the event of an errors and omissions claim. However, it is important to implement the best practices for accurate recording, storing, and documenting these calls.

• Select a system that records and stores outbound calls and links them directly to client profiles.
• Play a prerecorded disclaimer statement before the prospect talks to a live agent.
• Ask for permission to record the call.
• Use automated software for the DNC list screening to make sure you only call numbers that are eligible to be contacted.
• Document calls and messages consistently to protect the business from any challenge.
• Record call details, like logging the date, time, duration, participants, and the summary of your conversation
• Attach the audio file or a transcript of the call to the client’s file.

TSR/DNC and State Telemarketing Nuances

The Telemarketing Sales Rule (TSR) requires telemarketers to make specific disclosures of material information. It also restricts misrepresentations, sets limits on the times telemarketers can call consumers, and prohibits calls to a consumer who has asked not to be called again.

The Federal Trade Commission (FTC) enforces it and focuses on fair practice standards. It mostly impacts B2B outreach when financial transactions are involved. TSR requirements include:

• Identifying the caller’s name, business, and purpose of the call at the start.
• Honoring National Do Not Call Registry calls.
• Providing material details about services, like insurance cost, terms, coverage policies, etc.
• Calling between 8 a.m.and 9 p.m. in the recipient’s time zone

Compliance with DNC List

The Do Not Call (DNC) list is a registry of individuals and businesses who have requested not to be contacted by telemarketers, email marketers, or direct mail marketers. This list is maintained by the Federal Trade Commission (FTC) in the United States and other regulatory bodies in other countries.

Complying with the regulations of the DNC list can be challenging. But there are key requirements to assure compliance.

• Telemarketers need to check their registry and clean their call lists of registered numbers atleast once every 31 days.
• They must get prior expressed consent from individuals before contacting them.
• Provide clear identification information, like the name, the company’s name, etc.
• If a consumer asks to be placed on the company’s internal do-not-call list, you need to honor the request immediately.

State with Stricter Laws

Federal regulations lay the groundwork for cold calling compliance but many states take it a step further with stricter rules. They go beyond federal requirements, adding an extra layer of regulations.

• Require the telemarketers to maintain detailed records of outbound calls.
• Mandate that the callers identify themselves at the very start of the conversation
• Enforce narrower calling windows and collect explicit consent
• Demand registration and licensing for telemarketing activities

GDPR and ePrivacy Compliance Tips for B2B Email/SMS

The General Data Protection Regulation (GDPR) was drafted and passed by the European Union to enforce obligations on organizations anywhere when they target and collect data.

In B2B activities, like email marketing or SMS marketing, your customer base consists of other companies. Marketing and sales teams interact with individuals within those companies. They have privacy rights that should be protected under the GDPR.

The ePrivacy directive, also known as the “Privacy and Electronic Communications Directive 2002/58/EC,” establishes a broad data and privacy framework within the European Union (EU).

It focuses on making sure the confidentiality of communications and protecting personal data in this modern age.

It complements the GDPR by providing specific rules for effective email and SMS campaigns.

• Collect Explicit Consent When Needed

This law demands that consent should be freely given, specific, and clear. It applies to both new leads and existing customers. Therefore, you should avoid pre-checked boxes as consent is an active choice, clearly explain what kind of email the recipient will receive, and provide links to the privacy policy and terms of service.

• Keep It Easy to Opt-Out

Every marketing email and SMS should have a simple, visible way for recipients to unsubscribe. It will help to comply with GDPR and ePrivacy requirements, maintain a good sender reputation, and build subscribers’ trust.

• Keep It Transparent and Use Plain Language

These laws focus on clarity and transparency in how personal data is used. You can use plain and simple language in sign-up forms, privacy notices, and email footers. Also, clearly explain why you’re collecting their data, what you’ll do with it, and how they can contact you to withdraw consent.

• Secure Email Communications

Use encryption methods to protect email content and recipient data. You can use Transport Layer Security (TLS), as it is a commonly used method to encrypt emails during transmission.

• Send SMS During Daytime Hours

In most countries, SMS shouldn’t be sent too late or too early in the day. In simple words, send in your recipients’ local time and avoid sending before 9 a.m. and after 8 p.m.

• Support HELP and STOP Keywords

Your SMS messages should support both HELP and STOP keywords commands. Also, use other similar keywords in the recipient’s local language, like STOPALL, START and UNSTOP, UNSUBSCRIBE, etc.

CCPA/CPRA Rights for Business Contacts and How to Implement GPC

The California Consumer Privacy Act of 2018 (CCPA) gives consumers more control over their personal information, like the right to know what information your business collects, how it is used, and who it is shared with. This regulation provides guidance on how to implement the law.

It establishes the eight fundamental rights regarding the collection, sharing, storage, and use of personal data for California residents. Following these rights is crucial for protecting consumer privacy and avoiding legal violations.

• Right to Notice

It is also known as the “Right to Know”. It gives the customers the right to request information about the data the business has collected about them over the past 12 months.

• Right to Erasure

Also known as the “Right to Delete”. It gives your customers the right to request the deletion of information that the company has collected from them, which is subject to certain exceptions.

• Right to Opt-in for Minors

The company must obtain affirmative authorization, or “opt-in,” from teenage consumers before using their information. It should provide a clear and evident way for minors to opt out of the sale of their personal information.

• Right to Non-Discrimination

Businesses cannot discriminate against consumers for exercising their CCPA rights. By Discriminatory practices, it means denying goods or services, charging different prices, or providing a different level of quality of goods or services.

• Right to Opt-out

Your company must set up a “Do Not Sell My Information” button on its website and implement a system to comply with the right to opt-out. It can’t re-ask consumers for consent to sell their personal information for 12 months after they’ve opted out.

• Private Right of Action

This law allows consumers to initiate a privacy cause of action for security violations. It also demands that the company notify consumers about security violations within 72 hours of becoming aware of the breach.

The CPRA: 2 Additional Rights

This law was passed by the voters in 2020. It amends and strengthens the CCPA rights. It also expands the CCPA definition of personal information to include additional categories of information. It also promotes two additional consumer rights.

• Right to Correct

The CPRA gives consumers the right to correct inaccurate information that the company has collected about them. It is also necessary to disclose this right to consumers and provide them with a way to request a correction or delete the information, subject to certain exceptions.

• Right Limit of Use of Personal Information

Within this law, the consumer has the right to request that the company limit the use of their personal information for certain purposes, like targeted advertising. The company needs to inform consumers how it intends to use any sort of sensitive personal information before collecting it.

Implement Global Privacy Control (GPC) in Your Business

Global Privacy Control is known as a browser-based privacy tool that standardizes a user’s privacy choices across all websites. This is an open initiative that seeks to enable a browser based on a global standard for privacy control.

All businesses, like commercial insurance that collect and use of personal data online need to be aware of the GPC and user consent choices.

Your company needs to actively comply with GPC to make sure that it meets the legal requirements while respecting visitors’ choices.

• Evaluate which Privacy Laws Apply to Your Company

The company should assess the privacy laws applicable in each jurisdiction in which it operates. It involves identifying relevant regulations, such as the GDPR  in Europe, or the CCPA in California and understanding their specific requirements.

However, applying the best practices and respecting the GPC signal even if your audience isn’t protected by a law that is needed is always a good idea.

• Ensure Your Consent Management Platform Supports GPC

Make sure the GPC signals aren’t overlooked; it’s crucial that your consent management platform (CMP) supports these universal opt-out mechanisms. A CMP that automatically detects and honors the GPC signal helps to reduce consent problems for users.

This way, it builds trust and prevents confusion as consumers have set their consent choices in the GPC tool.

• Integrate with GPC Signals

Check if your web properties can receive GPC signals, which is increasingly important for enabling users to own their data privacy. It will not only improve your users’ trust but also ensure that the company meets modern privacy standards.

It also facilitates a user-centric approach to data management.

CAN-SPAM Essentials for the Best Practices of Sales Email

This act has made mandatory requirements for those who send unsolicited commercial email. It gives recipients the right to have you stop emailing them and spells out penalties for violations. It came into effect in 2003.

Despite its name, CAN-SPAM doesn’t apply to just bulk emails. Rather, it covers all commercial messages, even emails that promote content on commercial websites.

It also makes no exception for business-to-business email. Even if you’re sending a message to a former customer announcing a new line of insurance product, you need to comply with the law.

Avoid Using Fake or Misleading Information

Your “From”, “To”, and “Reply-To” and routing information, including the originating domain name and email address, should be accurate. It should identify the person or business who initiated the message.

Avoid Using Deceptive Subject Lines

This law doesn’t allow the use of misleading subject lines in commercial emails. Your subject line should be clear and concise, and accurately reflect the content of your message.

Tell Recipients Where You’re Located

Your email should contain your valid physical postal address. This can be your current address, a post office box you’ve registered with the U.S. Postal Service, or a private email box you’ve registered with a commercial mail receiving agency.

Give Recipients the Ability to Contact You Directly

Allow the recipients to contact you directly. Either by mailing you back using your “from” address or by contacting you through the old-fashioned style using your physical address.

Tell Recipients How to Opt Out of Receiving Future Emails

Your message should have a clear explanation of how the recipients can opt out of getting marketing emails in the future. Craft the notice in a way that’s easy and understandable for any ordinary person.

Honor Opt Out Requests Immediately

Any opt-out mechanism you’re offering should be able to process opt-out requests for at least 30 days after you’ve sent the message. You must honor the recipient’s opt-out request within 10 business days.

Understand Channel Playbooks: Phone, SMS, Email, Forms/Cookies

A well-defined channel playbook is essential for success in the B2B landscape. It acts as a complete guide that outlines the best practices to effectively sell and promote products or services.

However, channel playbooks, like phone, SMS, email, forms/cookies, need to comply with data privacy while reaching out to potential customers. Why? Information is one of the most valuable assets a company can own. For commercial insurance, customer trust depends not only on product quality but also on how securely data is managed.

Data protection laws are being updated frequently. General Data Protection Regulation and similar regulations in other regions have changed how companies should manage customer data through various channels.         

Phone

• TCPA

It prohibits autodialed or prerecorded calls to cell phones without prior express consent. It obliges that calls are made between 8 AM and 9 PM in the recipient’s local time zone.

• GDPR

It requires a legal basis for calling, like consent, and focuses on the protection of personal data transferred during calls.

• CCPA

Affects phone data if it is personal information, granting consumers the right to know what data is collected and to opt out of its use.

SMS

• TCPA

It requires express written consent for autodialed texts. It also prohibits texting outside the 8 AM-9 PM “quiet hours” window.

• GDPR

It demands consent for sending marketing texts, even if the user lives in the EU.

• CCPA

It governs the collection and use of phone numbers. Also allows California consumers to opt out of the sale of their contact information.

Email

• TCPA

This regulation demands a “pre-existing business relationship” or consent to send marketing emails, in addition to meeting CAN-SPAM requirements.

• GDPR

Mandates that organizations should get explicit consent to send marketing emails and provide a clear unsubscribe option.

• CCPA

It enables California consumers to control their information, like email addresses, and to opt out of the sale of that information.

Forms/Cookies

• TCPA

Primarily focuses on telemarketing and SMS. It doesn’t directly regulate website forms of cookies.

• GDPR

Governs the collection of data through website forms and the use of cookies. It also needs clear consent notices and opt-out mechanisms.

• CCPA

Mandates the disclosure of data collected through forms and cookies. It also allows consumers the right to opt out of the sale of their personal information collected through these methods.

Decision Tree and Compliance Matrix for U.S.Vs EU

A decision tree is an adaptable tool that can be applied to a wide range of problems. It is commonly used in businesses, like insurance companies, that analyze customer data and make marketing decisions.

It is a structured way to map out choices and their potential outcomes in a branching diagram. It breaks down complex choices into smaller, manageable pieces. It begins with a starting point, the main decisions that need to be made, and the possible choices and outcomes are added.

Compliance is following the relevant regulations, like GDPR, CAN-SPAM Act, regarding how business contact data is collected,  stored, listed, and protected during outreach activities.

Here’s a combined decision tree and compliance matrix table that merges both logic and regulation views in a single, easy-to-scan format.

 

Channel	Decision Point	U.S. Regulations ( TCPA/CCPA/ CAN-SPAM /TSR)	EU Regulations (GDPR/ePrivacy Directive)
Identify jurisdiction	Is the contact located in the U.S or the EU?	TCPA, CCPA, CAN-SPAM, TSR, state privacy laws	GDPR, ePrivacy
Identify channel: manual call	Is the call manual?	It is allowed under the TSR if not on the National or company-specific DNC	It is allowed under legitimate interest if relevant to the role
Autodialer, AI/ prerecorded call	Is automation or prerecorded voice used?	It requires express written content	It requires explicit consent
SMS/ text Message	Sending a text or an automated message?	Requires express consent	Explicit consent under GDPR
Cold email	Sending first-time B2B outreach email?	It is allowed if the complaint consists of a clear ID, opt-out, and no deception	It is allowed if there’s opt-in or under legitimate interest
Web forms or lead capture	Using cookies or collecting info via a form?	Must disclose and allow opt-out	Requires opt-in consent
Data source validation	Was the data obtained lawfully,e.g.,trade show, directory?	Data brokers must be CCPA-compliant; they must disclose sales	Collect only data with a lawful basis
Data opt-out handling	Can the contact easily opt out or delete data?	Required under TCPA, CAN-SPAM, and CCPA	Requires under GDPR

Insurance-Specific Pitfalls: How GLBA/HIPAA Overlaps

The Gram-Leach-Bliley Act of 1999 (GLBA) is also known as the Financial Modernization Act. A federal law that regulates the use and disclosure of financial institutions’ customers’ (non-public personal information). It defines non-public information (NPI) as “any information received by a financial institution that is not public”.

The Health Insurance Portability and Accountability Act (HIPAA) of 1996 establishes federal standards protecting sensitive information from disclosure without a patient’s consent. The U.S. Department of Health and Human Services issued the HIPAA privacy rule to implement HIPAA requirements. These security rules protect specific information and cover the privacy rule.

Though both aim to keep personal data safe, the details, like what data is covered, who must comply, and how incidents are reported, differ notably. However, they both can overlap due to some similarities, since both revolve around protecting sensitive information, leaving brokers and agents wondering which law to follow.

• Emphasis on employee training.
• Privacy Notice (GLBA) and Notice of Privacy Practices (HIPAA).
• Information Security Plan (GLBA) and Security Policies and Procedures (HIPAA).
• Emphasis on testing systems for weakness.
• Focus on consistently monitoring compliance and viewing compliance as a process rather than a one-time action.
• Requirement of using secure service providers (GLBA), or Business Associates (HIPAA), to handle sensitive information responsibly on behalf of the complaint entities.
• Similar fines and penalties.

Final Takeaways

All types of insurance companies, including commercial insurance businesses, need a lot of personal information from customers. This makes consumer protection and data security compliance a core component of operations.

That’s why transparency is a fundamental requirement in insurance marketing. Earlier, we discussed how different types of laws, like TCPA, GDPR, CCPA, etc, mandate specific disclosures to prevent misleading information. Whether through phone calls, emails, or third-party lead generation, your insurance professionals must comply with regulations while collecting data and providing accurate information to consumers on how they are using it.