Use AI in insurance without exposing client details

Whether ChatGPT is safe for confidential information comes down to what a CSR pastes: notes from a first notice of loss, a first report of injury, a letter to an underwriter or a dec page an insured wants explained.

Every one of them has a few lines that point at a real person. An auto loss notice has the named insured, a date of birth, a driver’s license number, the VIN and the plate. A workers’ comp first report adds the employee’s Social Security number. The policy number and the claim number head everything, and premium by EFT adds a bank account number. When an insured sends a passport card as ID instead, a watermarked passport card copy names the claim it was for. Insureds who send a driver’s license can watermark it the same way, and the pages for California, Texas, Florida, New York, Pennsylvania, Illinois, Ohio, Georgia, North Carolina, Michigan, New Jersey, Virginia, Washington, Arizona, Tennessee, Indiana, Massachusetts, Missouri, Maryland, Wisconsin, Colorado, Minnesota, South Carolina, Alabama, Kentucky, Oregon, Oklahoma, Connecticut, Utah, Iowa, Nevada, Arkansas, Mississippi, Kansas, Louisiana, Nebraska, New Mexico, Idaho, West Virginia, Hawaii, New Hampshire, Maine, Montana, Rhode Island, Delaware, South Dakota, North Dakota, Alaska, Vermont, Wyoming and DC licenses show how.

So when an agency asks whether ChatGPT is safe for insurance agents, the answer turns on those lines, because the coverage question you are putting to the AI never needed them. Nonimo takes them out on the agent’s own computer before the text is sent. Our guide to ChatGPT and your data covers what OpenAI holds on to from a conversation, and for how many days.

AI for insurance agencies works here with the client left out: the CSR highlights the notes, presses one key, and ChatGPT, Claude or Copilot drafts the email around bracketed placeholders.

Right there on the Mac or Windows machine, every client detail Nonimo can place turns into a placeholder, and the chat only ever gets that version. Nonimo then fills the real name and numbers back in on the agent’s screen.

In the example below, the employee’s name, birth date, SSN, phone number and email address all became placeholders, and the name got the same placeholder in the header and in the sentence, so the AI writes about one person.

The injury is still there in the text, since the adjuster has to read it: a strained back, urgent care, two weeks of light duty. The employee’s name and numbers stay on the agent’s computer. Our guide to PHI, PII and sensitive personal information explains which label fits a document before it goes to AI.

The NAIC’s Insurance Data Security Model Law, written in 2017 for states to enact in their own words, applies to every licensee: the agency and its producers, not only the carriers they place business with.

A licensee is anyone licensed under the state’s insurance laws. The model’s definition of nonpublic information reads like the top of a claim file: a consumer’s name or other identifier together with a Social Security number, a driver’s license number or an account number, plus health information from a provider or the consumer.

Section 4 asks each licensee for a written information security program, built on a risk assessment and sized to the agency. Carriers now ask about AI too, in the cyber insurance questionnaire an agent fills in with the client.

The model law defines a third-party service provider as a company that contracts with the licensee and is permitted access to nonpublic information through its services. An AI subscription the agency pays for, with a loss notice pasted in, is hard to read any other way. For a loss notice pasted before anyone redacted it, our guide to the first hour covers state notice rules.

Nonimo replaces what it is sure of quietly, and anything less certain in plain view, with a one-line reason and an undo.

On a made-up auto loss notice, the named insured, policy number, claim number, driver’s license number and plate all become placeholders. The date of loss, the car and the account of the fender bender at the red light come through untouched, so the note asking the adjuster about a rental still reads right.

Whether you’re looking at AI for insurance brokers on commercial accounts or for a personal lines agency, start with one desk, on Windows or on a Mac, and add the rest later.

Nonimo’s Free plan covers 100,000 words a month, with no account and no credit card. Personal, for one person, and Team, priced per person, remove the cap and can be billed monthly or yearly; the details are on our plans and pricing page. The download buttons sit up top on this page.

Begin with the people who write to carriers all day: whoever handles claims, and the commercial lines account managers. For the whole agency, IT can push a browser extension by policy, and it redacts text in the browser with no key to press; our page for organizations has the details. Producers can keep the desktop app too.

Each agent’s app can export a signed usage report that counts redacted items by category and never shows the text; anyone can check it at nonimo.ai/verify. Writing the security program is still the agency’s job; Nonimo can go into it as a technical safeguard. We receive nothing from your clients’ files, and the originals never leave the agent’s computer.