Last reviewed
The short answer. Insurance agents can use ChatGPT and Claude for coverage explanations from specimen forms, renewal emails, and summaries of carrier and regulator notices. Applications, claim files, and identifiers stay out, and a licensed agent reviews anything describing coverage.
Where ChatGPT helps an agency
Draft a plain-English explanation from a specimen form, renewal reminders from placeholders, or a summary of a carrier bulletin or regulator notice.
The NAIC bulletin reaches agencies through carriers
The December 2023 NAIC Model Bulletin addresses insurers and expects written AI governance, risk controls, and oversight of third-party systems and data. By August 31, 2026, 25 states and DC had adopted it. Agencies should expect carrier questions and ask what each carrier requires.
Privacy and data security already cover producers
State insurance authorities enforce GLBA privacy. NAIC Model Law 668 applies to licensees, including producers; as of August 2025, 28 jurisdictions had adopted it. Small-licensee exemptions from a written program do not remove event-investigation and reporting duties. State versions differ.
What stays out
Keep applications and claim files with names, health and driving history, Social Security and driver’s-license numbers, policy and account numbers, and carrier-restricted information out.
The habit that makes it safe
Use [INSURED], [POLICY_NO], and [CARRIER], work from the specimen form, and restore real details after the answer. A licensed agent checks any coverage explanation against the form.
What insurance agents use ChatGPT for
These uses begin with public, generic, or synthetic material and end with professional review.
- Drafting a general coverage explainer for an agent to verify
- Creating a renewal checklist from approved internal procedures
- Rewriting generic educational material in plain language
- Brainstorming questions for a discovery call without client details
- Drafting a follow-up message with placeholders for policy information
Client data that stays out of prompts
Use placeholders or synthetic records when the task needs structure. Keep the following data out of consumer and unapproved AI tools:
- Policyholder, insured, beneficiary, and claimant names and contact details
- Policy, claim, producer, and account numbers
- Social Security numbers, driver license data, and government identifiers
- Medical history, health records, prescriptions, and disability information
- Loss descriptions, adjuster notes, property details, and claim photos
- Premium, payment, bank, password, and API key data
Read Is ChatGPT safe for work? for provider data handling, training choices, retention, and encryption by plan type.
Five steps for safer use
- Start with policy. Define approved tools, prohibited data, review, reporting, and an owner in the AI acceptable use policy.
- Remove client context. Replace real records with synthetic examples and neutral placeholders before drafting the prompt.
- Use the approved account. Confirm the exact product, plan, settings, and connected features match company policy.
- Verify every result. Check facts, calculations, citations, professional requirements, and final language against authoritative sources.
- Report mistakes and exposure. Stop the workflow, preserve the relevant record, and follow the company reporting path.
The PII redaction guide shows how to define, test, and log a control before an LLM call. The AI glossary defines the gateway and guardrail terms.
Professional guidance
The National Association of Insurance Commissioners says its AI Model Bulletin establishes expectations for insurers’ use of AI systems. It states that AI-supported decisions and actions that affect consumers must comply with applicable insurance laws and regulations, and that insurers are expected to govern AI use and provide information regulators request. Agents should follow their carrier’s approved systems, procedures, and review path.
This guide provides operational information. Have counsel or the profession’s designated compliance owner review company policy and each approved use.
Frequently asked questions
Can insurance agents use ChatGPT?
Yes. Use an approved account for generic work, keep policyholder and claim data out of prompts, and follow carrier procedures and review requirements.
How can ChatGPT be used in insurance?
It can help draft general explainers, create process checklists, rewrite educational material, and prepare generic discovery questions.
What are the risks of AI in insurance?
Risks include exposing consumer data, relying on inaccurate output, making unsupported statements, and using an unapproved tool in a regulated workflow.
Can ChatGPT analyze insurance policies?
Use it only within an approved workflow. Keep policyholder and confidential policy data out of prompts, and have a qualified person verify every interpretation against the policy.
Keep going
ChatGPT for accountants: use it without sending client data
ChatGPT for real estate agents: write faster, keep client data out
Using ChatGPT with client data
A practical next step
For regulated work
Sources
Sources read on 2026-10-07.
- NAIC Model Bulletin on AIhttps://content.naic.org/sites/default/files/inline-files/AI%20Model%20Bulletin%20-%20April%202024.pdf
- NAIC artificial intelligence adoption maphttps://content.naic.org/insurance-topics/artificial-intelligence
- 15 U.S.C. § 6805https://www.law.cornell.edu/uscode/text/15/6805
- NAIC Insurance Data Security Model Lawhttps://content.naic.org/sites/default/files/model-law-668.pdf
- NAIC: Artificial intelligence insurance topic and AI Model Bulletinhttps://content.naic.org/insurance-topics/artificial-intelligence
- SUPERWISE docs: PII redactionhttps://docs.superwise.ai/docs/pii-redaction
General information. It is not legal or tax advice. Reviewed 2026-10-07.