What is the goal of the Gramm-Leach-Bliley Act?

The goal of the Gramm-Leach-Bliley Act (GLBA) is to protect the confidentiality of consumer information. Enacted in 1999, the GLBA primarily governs the financial services industry, focusing on the sharing of personal financial information between financial institutions, which includes banks, insurance companies, and securities firms. The act establishes measures to ensure that consumers are informed about how their information will be shared and gives them the ability to opt-out of certain information-sharing practices, thereby safeguarding their privacy.

While topics such as insurance fraud and affordability of health insurance are significant within the broader context of financial and health services, they are not the central aims of the Gramm-Leach-Bliley Act. The act does not focus on modifying insurance premiums or directly combating fraud; instead, its primary intent is to enhance consumer protections in terms of personal data confidentiality.