Before any policy document, claim file or customer record reaches a vendor's system, insurance organizations should be able to answer a short list of questions with confidence — not assumptions.
Where does the data actually go, and where is it stored? Ask for a clear, specific answer about data location and retention, and whether your data is used to train models shared with other customers, not just a general privacy statement.
Who can access it, and under what conditions? Understand whether vendor staff can view your data directly, what internal controls exist around that access, and what happens to your data if the engagement ends.
How are answers checked before they reach a person? Ask what happens when the vendor's system is uncertain, and how a person in your organization is meant to catch and correct a wrong answer before it affects a customer.
What happens when something goes wrong? Ask the vendor to walk through a real example of an error and what their process looks like for catching, correcting and communicating it — not just their uptime guarantees.
What can you see and control? A vendor that gives your team visibility into what's being answered, where it came from, and the ability to review and adjust it, is easier to trust with sensitive data than one that operates as a closed system.
Start narrow before you go wide. Share the minimum data needed for a defined pilot before considering a broader integration. A vendor that supports that request, rather than pushing for more access upfront, is usually a good sign.