I don't understand why there shouldn't be a strict-liability play here on top of penalties for knowing violations.
You lose all your customer's data to a darknet leak? We should be taking a huge chunk out of your balance sheet.
My insurer has disclosed names, social security numbers, and ENTIRE MEDICAL CASEFILES for their entire client base more than once at this point in overlapping data breaches. Why exactly don't they owe me $10k for my trouble, or N% shares of the company? If that's too much, why do these penalties exist for knowing disclosure, if incompetence is so tolerated that knowing disclosure does no damage?
I'll bite. Why is it the fault of the organization that gets broken into, rather than the fault of the attackers breaking into it? Even if the defender takes every reasonable defensive measure, they could still get pwned from some zero day that they had no defense against. Should they be fined into oblivion for something like that?
At some point we really should consider a similar system to points on a drivers license for repeat offenders like that. Once, maybe twice come with some serious fines and compensation to victims. 3 times or more? Why are they allowed to continue to be in that business? We can't let repeat offenders be allowed to continue to handle sensitive data.
Penalties are $100-$50,000 per violation (i.e. per leak for each person), up to $1.5 million per year[0]. If in the US (I'm assuming given you mention your health insurance) you can report it to your state insurance commissioner which may have already occurred for your incidents.
[0] https://www.ama-assn.org/practice-management/hipaa/hipaa-vio...