Laptop theft compromises information for 1,200 clients.

The theft of a laptop computer containing the personal information of more than 1,200 clients of insurance broker Hilb, Rogal & Hobbs has served to highlight a major concern regarding the safety of personal information, especially information that flows between brokers, agents and carriers.

"We're in a new world now and this is an area where we face new security risks. And we're very concerned," said Jeff Yates, executive director of the Agents Council for Technology of the Independent Insurance Agents and Brokers of America. "Before, you had brokers, agents and carriers each traditionally concerned with information contained within their own systems. Now, we're interconnected, so we need to look at the new security issues that arise because of that."

ACT (www.independentagent.com/act) is a partnership of independent agents, companies, technology vendors, user groups, and associations dedicated to enhancing the use of technology and improved work flows within the independent agency system.

Liz Cougot, director of corporate communications at Hilb Rogal & Hobbs, said the laptop was one of two that were stolen from a locked company office in Philadelphia. The information contained on one of the laptops included names, birth dates and driver's license numbers of more than 1,200 Villanova University students and staff members. Cougot said the information related to the school's automobile insurance policy.

In addition to contacting the school following the Sept. 3 theft, the broker reached out to all individuals whose names were listed on the laptop, she said. Cougot said that the company does not believe that the computers were stolen for the sake of the hardware, rather than for the information contained within their memories. In addition, the personal information was contained within an e-mail, access to which requires a user name and password.

The Hilb Rogal & Hobbs theft highlights one point Yates' group has at its forefront, he said.

"When you send an e-mail, it's like an open postcard," Yates said. "It's important to be careful."

And while his group continues to study the e-mail security question, a recent report by Yates' group states other portable devices that pose risk of information theft include zip drives, memory sticks and CDs.

According to the report, which is available on the ACT group's Web site under "agency improvement tools," agents should not store customer and policy information on portable devices. Such sensitive information should be relegated only to the agency's system through a password-protected Virtual Private Network, when needed. The report also suggests the encryption of any nonpublic electronic information that leaves the agency office.

Hilb Rogal & Hobbs is certainly not the first to experience the compromise of sensitive data.

In June, more than 900,000 people whose personal information was stored on a file server at a regional office of American International Group Inc. became potential victims of identity theft. The incident happened when thieves broke into an AIG Medical Excess regional office in the Midwest and stole equipment, including the file server.

Other incidents include the theft of personal data of 26.5 million veterans and 2.2 million active U.S. military personnel from the home of a Department of Veterans Affairs analyst.

Technology Notes is compiled by Senior Associate Editor Lori Chordas.