Florida Lawmakers Seek Human Review for AI Insurance Denials

Florida lawmakers are pursuing new regulations to ensure human review of insurance claim denials, aiming to prevent artificial intelligence from serving as the sole basis for such determinations. The initiative follows concerns that insurers are using AI to underwrite coverage and determine payouts without notifying consumers.

Hilary Cassel, a State Representative of Florida, argues that human oversight is critical for decisions affecting life and health. While the Florida Department of Financial Services reports only three AI-related claims since 2019, Cassel and other critics contend this data underrepresents the actual scale of the issue. This push for transparency coincides with a high homeowners insurance claim denial rate in 2024, which reached 46.7% with over 92,000 denials. The Florida Office of Insurance Regulation attributed these figures largely to $4.7 billion in insured losses from Hurricane Milton.

The Insurance Information Institute defends the use of AI, stating that these applications increase efficiency and improve accuracy for policyholders. However, officials from the Florida Department of Financial Services have testified that consumers generally remain unaware when AI is used to determine the amount of an offer or deny a claim.