Artificial intelligence (AI) is transforming how insurance professionals learn, work, and serve clients. From explaining complex policy concepts to helping draft emails and marketing content, AI can save time and improve productivity. But data privacy is essential in the insurance profession and there is information you should never enter into an open AI tool. Find out what you can and can’t type into your favorite AI tool, so you can maintain efficiency without risking your clients’ and companies’ private information.
Summary
Insurance Agents use AI to optimize their workflows, but should never do so at the risk of privacy. Do not enter personally identifiable information (PII) into AI tools. Use hypothetical or fully anonymized examples instead.
Why Privacy Matters for Insurance Agents Using AI
Insurance is one of the most data-sensitive industries in the world. Every day, agents work with information that people expect to remain confidential: social security numbers, health information, financial records, contact details, and more.
But insurance agents also deal with long, complex documents that take time to read and understand—a perfect use-case for AI to summarize and highlight key details. If you've ever been researching coverage options or trying to understand a policy concept, for example, you may have been tempted to copy and paste the real-world client example into an AI tool for help. That seemingly harmless action can create a real privacy risk.
Most AI Platforms Are Open
Many AI platforms are open, meaning that they process, store, or log user inputs, and use that information to inform future answers. This means that any information you enter in a non-company-specific AI tool travels beyond your computer and into systems you don't control. For insurance professionals, that matters because you handle some of the most sensitive personal information that people have. If you're entering real client details into open AI, you’re putting private information at risk of public exposure.
Consequences of Inputting Private Data into Open AI
If you release personal information into an open AI system, you risk:
- Identity theft
- Data breaches
- Compliance violations
- Regulatory penalties
Not only do you risk these dangers happening to your clients and company, but you also risk your own career, customer trust, and reputation.
The safest approach is the simplest: never enter real personally identifiable information into AI tools.
What Is Personal Information?
Personally identifiable information (PII) is any information that can identify a specific person, either on its own or when combined with other data points. Some information clearly identifies someone (like a social security number). Other details may seem harmless until they're combined with additional information (like a birth date).
PII Examples that Insurance Agents Should NOT Enter Into AI
Highly Sensitive Information
The following should never be entered into public AI platforms:
- Social Security numbers
- Driver's license numbers
- Passport numbers
- Bank account information
- Credit card numbers
- Medical records
- Claims histories
- Login credentials
- Usernames and passwords
Information That Seems Safe but Still Creates Risk
Many professionals mistakenly believe these details are harmless. They aren't.
Examples include:
- Full names
- Home addresses
- Email addresses
- Phone numbers
- Dates of birth
- Policy numbers
- Account IDs
Even when a single piece of information appears insignificant, combining multiple details can reveal a person's identity. Privacy risks often come from multiple small pieces of information that, when connected, identify real people and leave them vulnerable.
Why You Should Never Enter PII Into AI Tools
1. AI Platforms Store User Inputs
Many AI systems process and retain prompts to improve services, monitor quality, or maintain system operations. That means information you enter does not disappear after your conversation ends.
2. Data Deletion Isn't Always Transparent
Users often have limited visibility into exactly how data is stored, retained, or deleted. If you don't fully understand how a platform manages your data, it's safest to avoid sharing sensitive information altogether.
3. Privacy Laws May Apply
Depending on your location and business activities, privacy regulations like HIPAA, GLBA (The Gramm-Leach-Bliley Act), and state insurance data security laws such as NAIC Model Law may affect how your clients’ data can be handled. Improper use of personal data may expose you to compliance risks and legal consequences.
4. Anonymous Data Isn't Always Anonymous
Even when names are removed, combining multiple data points can sometimes reveal someone's identity. Modern data analysis techniques can make re-identification easier than many people realize.
The Privacy Checklist: What NOT to Put Into AI Tools
If you're wondering what should not be entered into AI tools, use this quick checklist.
- General insurance concepts
- Public information
- Industry trends
- Hypothetical client scenarios
- Fully anonymized examples
Examples include:
- "What is term life insurance?"
- "Explain the difference between replacement cost and actual cash value."
- "Create a sample homeowner insurance scenario."
Information to NOT Use in AI Tools
1. Real Client Information
- Names
- Addresses
- Email addresses
- Phone numbers
2. Policy or Account Details
- Policy numbers
- Claim IDs
- Coverage details tied to a specific client
- Customer account numbers
3. Financial Information
- Credit card numbers
- Banking information
- Payment details
- Tax identification numbers
4. Health or Claims Information
- Medical history
- Disability claims
- Prescription information
- Health conditions
- Injury records
5. Login Credentials or Internal Systems Information
- Usernames
- Passwords
- Internal workflows
- Security procedures
- Company system details
6. Partial Information That Could Identify Someone
One of the biggest misconceptions about AI privacy is that removing a person's name makes data safe. For example: "I have a 45-year-old client in Indianapolis with a $500,000 life insurance policy who recently filed a disability claim."
There's no name in that sentence, but there may be enough information to identify a real person. Partial information can still create privacy risks.
Safe vs. Unsafe AI Input Examples
-
“Explain whole life insurance.”
-
Safe: No personal information is included.
-
- “Explain a policy for John Smith in Indiana.”
- NOT SAFE: This identifies a real person.
- "Create a sample client scenario."
- SAFE: This is completely hypothetical.
- "Analyze my client's coverage using details from this policy information."
- NOT SAFE: This includes sensitive, private, identifiable information.
- Summarize this anonymized example using "Client A."
- SAFE: All identifiable information has been removed and made anonymous.
See how other insurance agents are using AI and get tips on how to get started with our FREE ebook, AI in Insurance: A Snapshot of Acoption, Opportunities, and Responsible Use.
How to Use AI Safely as an Insurance Agent
The safest approach is simple: use AI for learning and productivity, but never in conjunction with client information.
Follow these best practices:
- Ask general questions instead of client-specific questions.
- Replace names with placeholders, such as "Client A."
- Remove policy numbers, account IDs, exact numbers and places, etc.
- Eliminate dates of birth and addresses.
- Use hypothetical examples.
- Review prompts before submitting them.
- Assume anything you enter could be viewed outside your organization.
As a rule of thumb, if you wouldn't email the information to a stranger, don't paste it into an AI tool. And if you're unsure, don't enter it. You're much better to be safe than sorry.
Build Safe AI Skills for Insurance Workflows
AI can be an incredibly useful tool for insurance professionals. It can help you understand complex concepts, explain coverage options, generate study materials, and improve productivity. What it cannot do is eliminate your responsibility to protect client information. Knowing what not to enter into AI tools is just as important as knowing how to use them effectively.
The best use of AI for insurance agents starts with a solid foundation of ethics. Explore XCEL's insurance continuing education programs designed to help you build career-ready skillsets while meeting your CE requirements.
