Across the industry, agencies and brokerages face talent shortages and have difficulty hiring experienced staff. Many have brought in employees who are new to the insurance industry. For these new hires, the learning curve is steep: insurance terminology, coverage options, policy wordings and underwriting considerations can feel overwhelming in the early months. At the same time, experienced agents and managers often have limited capacity to answer every question.

This is where AI assistants (e.g., ChatGPT and Gemini) can make a meaningful difference. While AI is often discussed in terms of automation and efficiency, one of its most practical uses within an agency is as a learning and onboarding companion for new employees.

AI as a Digital Mentor: Simplifying Insurance Concepts

AI assistants can act as a digital mentor for new hires who need clarification while learning on the job. While they don’t replace peer-to-peer collaboration, they provide valuable in-the-moment support — helping employees understand concepts, define terminology or break down coverage differences in plain language. This allows new hires to build confidence through independent learning, while ensuring experienced colleagues can focus on client work and provide deeper, more strategic guidance when it matters most.

When using AI tools, providing clear context in prompts is important. Because insurance rules, coverages and terminology vary by country, state or province — as well as by line of business — users get better results when they specify the jurisdiction and type of policy they are asking about.

For example, a new agent/broker reviewing a policy may encounter unfamiliar terms such as replacement cost, actual cash value or liability limits. Rather than feeling stuck or hesitant to ask a basic question, they can prompt an AI assistant with:

“I’m a new employee at an insurance agency learning about [type of insurance: personal auto, homeowners, commercial liability, etc.] in [State/Province/Country].

Explain [concept or coverage] in simple terms and provide an example of how I could explain it clearly to a client.”

If they encounter complex policy language, they can use a prompt designed to translate the wording into plain language while providing a real-world scenario:

“I’m a new employee at an insurance agency learning about [type of insurance: personal/commercial auto, homeowners, commercial property, etc.] in [State/Province/Country]. Here is a section of policy language: [paste policy text].

 Explain it in simple terms and provide a real-world example I could use to explain it to a client.”

Using these approaches, new hires can quickly build foundational knowledge, gain confidence in handling policy details and reduce interruptions to experienced colleagues or managers.

A Safe Environment to Practice Client Conversations

Another challenge for new employees is developing confidence when speaking with clients. Insurance conversations often involve explaining coverage options, answering questions and sometimes discussing complex situations, such as claims or policy limitations.

AI assistants can provide a safe environment where new hires can rehearse these conversations before interacting with clients. By simulating realistic client questions, employees can practice how they would respond and refine their explanations.

For example, a new employee might ask:

“Act as a client located in [State/Province/Country] who is asking questions about [type of insurance: personal auto, homeowners, commercial property, etc.]. Ask me realistic questions about [coverage topic] so I can practice explaining the coverage clearly and professionally. After I respond, give feedback on how I could improve my explanation.”

Practicing these conversations helps employees refine how they explain insurance concepts in clear, client-friendly language. Over time, this builds confidence and strengthens client interactions.

Supporting Managers and Trainers

AI can also support those responsible for training within an agency. Managers and trainers often spend significant time developing onboarding materials, creating guides and preparing internal documentation. AI assistants can help by generating draft training content, summarizing key coverage information and creating knowledge-check exercises for new employees.

All AI-generated materials should be reviewed for accuracy. But these tools do provide a strong starting point and can help reduce the time required to develop structured training programs.

For example, a trainer might prompt an AI assistant with:

“I’m a trainer at an insurance agency developing onboarding materials for [personal/commercial lines] insurance in [State/Province/Country]. Summarize key coverages in simple terms for new employees with little to no insurance experience, provide a real-world example and create a 3–5 question knowledge check on [concept or coverage] with answers and explanations.”

Using prompts like this, trainers can quickly produce learning materials, reinforce employee knowledge and focus more time on mentoring and coaching rather than drafting content from scratch.

Using AI Responsibly

As with any technology, AI should be used thoughtfully. Information generated by AI should be reviewed and verified, particularly when it relates to coverage interpretation or regulatory considerations. Agencies should also ensure that employees do not input confidential client information into AI systems.

AI should not replace professional judgment or expertise but serve as an additional learning support that complements existing training programs.

Looking Ahead

The insurance industry has always evolved through a combination of expertise, mentorship and innovation. As the next generation of insurance professionals enter the workforce, AI assistants offer an opportunity to strengthen that tradition.

As a readily available learning companion, AI can help new hires overcome many of the barriers that make the industry difficult to enter. For agencies competing for talent, tools that accelerate learning and onboarding may play an important role in building the workforce of the future.

Agencies don’t need to overhaul training programs overnight. Encouraging new hires and trainers to experiment with AI assistants in practical ways — like explaining coverage concepts or practicing client conversations — can be a first step toward a more confident, supported workforce.