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Prompt Engineering for Insurers

The difference between a useless AI response and a genuinely helpful one is almost always in how you ask. This guide teaches you the techniques that consistently produce better results for insurance tasks.

The CRAFT Framework

Five elements that transform vague requests into precise, effective prompts.

Context

What is the situation? Provide the background the AI needs to produce relevant output.

"I am reviewing a commercial auto fleet policy for a trucking company with 50 vehicles operating across 12 states..."

Role

What role should the AI assume? This frames the perspective and expertise level.

"Act as an experienced commercial lines underwriter specializing in transportation risks..."

Action

What specifically do you want the AI to do? Be precise about the task.

"Identify the top 5 risk factors I should evaluate and suggest specific underwriting questions for each..."

Format

How should the output be structured? Tables, bullet points, memos, summaries?

"Present your analysis as a risk assessment table with columns: Risk Factor | Severity (1-5) | Questions to Ask | Mitigation Options..."

Tone

What communication style is appropriate? Client-facing? Internal memo? Technical?

"Write in concise, professional language suitable for an underwriting memo reviewed by senior management..."

CRAFT in Action

Complete Insurance Prompt Example

[Context] I am a claims supervisor reviewing a complex liability claim. A delivery driver for our insured (a logistics company) caused a multi-vehicle accident resulting in bodily injury to three claimants. Our insured has a commercial general liability policy with $1M per occurrence and $2M aggregate limits. One claimant is alleging permanent disability.

[Role] Act as an experienced liability claims analyst with expertise in bodily injury claims and coverage analysis.

[Action] Analyze this claim and provide: (1) preliminary coverage analysis, (2) liability assessment considerations, (3) reserve recommendations for each claimant, (4) potential excess exposure analysis, and (5) recommended next steps for investigation.

[Format] Structure your response as a formal claims memo with clearly labeled sections. Use bullet points for action items.

[Tone] Professional and analytical. This memo will be shared with our claims committee and defense counsel.

Techniques in Practice

Side-by-side comparisons showing weak prompts vs. effective prompts for insurance tasks.

1. Be Specific About Insurance Context

Weak

"Help me with this claim."

Effective

"You are an experienced property claims adjuster. Analyze this commercial property claim for a warehouse fire. The policy is a BOP with $2M building coverage, $500K contents, and 12-month business interruption. Identify: (1) covered vs. potentially excluded damages, (2) subrogation potential, and (3) reserve recommendations."

2. Request Structured Output

Weak

"What are the risks of insuring this business?"

Effective

"Analyze the risk profile of a mid-size food manufacturing company seeking commercial general liability coverage. Structure your response as: 1) Primary risk factors (ranked by severity), 2) Loss history considerations, 3) Industry-specific exposures, 4) Recommended coverage enhancements, 5) Underwriting questions to ask the applicant."

3. Specify Jurisdiction and Regulation

Weak

"Is this claim covered?"

Effective

"Under California insurance law and the California Insurance Code, analyze whether water damage from a gradual pipe leak over 6 months is covered under a standard HO-3 homeowner's policy with no specific exclusion for "continuous or repeated seepage." Consider the efficient proximate cause doctrine as applied in California."

4. Include Verification Requirements

Weak

"Tell me about AI regulations in insurance."

Effective

"Summarize the NAIC Model Bulletin on AI (December 2023) and Colorado SB 21-169 requirements for algorithmic fairness testing in insurance. For each regulation, provide: the specific requirement, effective date, and enforcement mechanism. Flag any information you are uncertain about so I can verify against the original sources."

5. Use Role-Based Framing

Weak

"Write a denial letter."

Effective

"You are a claims manager at a mid-size P&C carrier, writing a coverage denial letter to a commercial policyholder. The claim is for business interruption losses due to a cyberattack. The policy excludes losses arising from "malicious cyber events." Write a professional, empathetic denial letter that: clearly states the denial reason, cites the specific policy provision, explains the policyholder's right to appeal, and maintains the client relationship."

6. Iterate and Refine

Weak

"That's not quite right. Try again."

Effective

"Your analysis is good but needs two adjustments: (1) The deductible calculation should account for the coinsurance clause — recalculate the recoverable amount with 80% coinsurance where the insured-to-value ratio is 75%. (2) Add a section on potential bad faith exposure if we delay the coverage determination beyond 30 days, citing the applicable state prompt payment statute."

Prompt Patterns for Insurance Work

Reusable patterns you can adapt to any insurance task.

Jurisdiction Lock

Anchor the AI to a specific regulatory environment.

"Apply California Department of Insurance regulations and California Insurance Code provisions only. If a question requires knowledge of another jurisdiction, state that explicitly rather than assuming California law applies."

Verification Demand

Force the AI to flag uncertainty.

"For each factual claim in your analysis, rate your confidence level as HIGH (well-established industry standard), MEDIUM (generally accepted but may vary), or LOW (uncertain, requires verification). If you are unsure whether a regulation or standard exists, say so explicitly."

Structured Output

Define the exact format you need.

"Structure your response as a claims memo with these sections: (1) Claim Summary, (2) Policy Coverage Analysis, (3) Liability Assessment, (4) Damages Evaluation, (5) Reserve Recommendation, (6) Action Items. Use bullet points within each section."

Devil's Advocate

Ask the AI to argue against its own analysis.

"Now argue the opposite position. What is the strongest case for coverage under this policy? What are the weaknesses in the denial position? What would a policyholder's attorney argue?"

Iterative Refinement

Build complexity through successive prompts.

"Step 1: Summarize the key facts of this claim. Step 2: Based on those facts, identify the applicable policy provisions. Step 3: Analyze coverage under each provision. Step 4: Recommend a coverage determination with supporting reasoning."

Put Your Skills to Work

The best way to improve your prompt engineering is through practice. Our Quick Wins give you pre-built exercises, and the Prompt Builder helps you construct custom prompts for any insurance task.

Try a Quick Win Open Prompt Builder Browse Prompt Library

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