For encrypting cardholder and insurance claim data, which configurations meet compliance and privacy requirements?

Choosing to store insurance claim data in Azure Files encrypted by Azure Key Vault Managed HSM aligns well with compliance and privacy requirements for several reasons.

First, this option leverages Azure Key Vault Managed Hardware Security Module (HSM) for key management, which provides enhanced security for cryptographic keys. Using customer-managed keys allows organizations to maintain full control over their encryption keys, ensuring compliance with various regulations such as the Payment Card Industry Data Security Standard (PCI DSS) and the Health Insurance Portability and Accountability Act (HIPAA). These regulations often require that sensitive data such as cardholder information and personal health information be protected with strong encryption mechanisms, and having control over encryption keys is integral to that compliance.

Additionally, Azure Files being used to store sensitive information means that the data is inherently protected at both the file and storage account levels. The encryption at rest ensures that even if unauthorized access occurs, the data is not readable without the decryption keys.

In the context of compliance and privacy, this option marries technical capability with regulatory obligations, providing a robust approach for safeguarding sensitive data.