On easy, you can stunlock most enemies to death (even some bosses and mini bosses), you can ignore signs, bombs, traps, throwing knifes, alchemy, mutagens and you can put talents into whatever you want, since your build does not matter. Play this if you only care for the story, or during a difficult encounter/boss battle.
Normal: Enemies and bosses require some strategy now. Signs, alchemy and bombs are very useful. You can safely ignore throwing knifes, traps and mutagens. A good build helps quite a lot, but you can get away with whatever. Its a balanced setting and you will die sometimes.
Hard: You need to use nearly everything at your disposal (perhaps except throwing knifes and traps, although they are very useful). You can still get away without mutagens, but bombs, alchemy and signs are essential. A good build is also very important.
Insane: If you die, you have to restart the game. Even more difficult than Hard in general.
Thats my opinion at least. Maybe a more seasoned player can give you a better description.