Do insurance agencies need an AI use policy?
Agents are already drafting client emails with AI. What regulators expect, what an agency AI policy covers, and how to check what reaches policyholders.
Yes. Insurance regulators expect AI use to be governed, and the NAIC’s model bulletin on insurers’ use of AI (adopted by many US states) asks for a written program with oversight and documentation. For an agency, that means approved AI tools, a policy every agent accepts, rules for client communications (no coverage promises, required disclosures) and a record.
What do insurance regulators expect about AI?
In December 2023 the NAIC adopted a model bulletin on the use of AI systems by insurers, which many states have since adopted. It expects a written AI program, governance and oversight, and documentation, including over third parties. Agencies aren’t insurers, but carriers and regulators increasingly expect the people selling their products to show the same discipline.
What should an agency AI policy cover?
- Approve the AI tools. Decide which assistants are allowed (Claude, ChatGPT, devs.ai or others) and block the rest.
- Write the policy and get it accepted. What AI is for, what it is never used for, and what client data must never go into it. Record each person’s acceptance against the version they accepted.
- Check what goes to clients. Apply the firm’s wording rules to every client-facing draft: what must be said, what must never be said, when to disclose, when to escalate.
- Keep the record. What was checked, what was caught, who accepted what. That record is what a regulator, examiner or auditor asks for.
What are the common AI mistakes in insurance messages?
- Implying coverage that the policy doesn’t provide, or that a claim will be paid.
- Leaving out required licence or disclosure wording.
- Policyholder details pasted into a personal AI account.
In Ontario, see what RIBO expects of brokers using AI. To write your own, start from the free AI use policy template.
Broker AI’s governance layer (approved tools, policy acceptance, draft checks, the record) carries over to insurance as-is. The live industry pack today is mortgage; insurance wording rules would be added for agencies that sign up. General information, not legal or compliance advice. Rules differ by state, province and regulator; check with your compliance team or counsel.
Questions people ask
- Can insurance agents use ChatGPT to write client emails?
- Many agencies allow it with an approved business account, a policy agents accept, and checks on what reaches clients, especially anything that could read as a coverage promise.
- Does the NAIC AI bulletin apply to agencies?
- It is addressed to insurers. Agencies are affected through carrier expectations and their own state rules, so a written AI policy is becoming the norm.
- Is this legal advice?
- General information, not legal or compliance advice. Rules differ by state, province and regulator; check with your compliance team or counsel.
By DisruptionIO, the team behind Broker AI. Published October 11, 2026, updated October 28, 2026.