AI in Florida insurance: New bill demands human review

Lawmakers have proposed a bill to ensure that artificial intelligence (AI) cannot be the sole factor in denying insurance claims. This includes claims for home, auto, or health insurance.

An insurance expert explained that AI is used to save time by automating tasks, speeding up the claim filing and resolution processes, and detecting fraudulent claims.

The new bill would ensure that claims are never reviewed only by AI, and it has already passed one Senate committee.

UCF Political Scientist Aubrey Jewett shared that this concern is common among constituents, and the bill has garnered bipartisan support.

“I think they realize that with artificial intelligence, this is a concern shared by most constituents, regardless of their party affiliation, that they really want a human being to be involved in making decisions about whether their insurance claims are accepted or denied,” said Jewett.

The bill, SB 794, prohibits insurers from using AI as the sole basis for denying claims. Decisions must be made by a “qualified human professional” who will review claims, policies, and AI-generated outputs. However, not everyone supports the bill.

Mark Friedlander from the Insurance Information Institute expressed concerns about the bill’s impact on insurance rates.

“It’s addressing a problem that doesn’t exist,” said Friedlander.

Friedlander explained that requiring more oversight could lead to higher insurance rates.

“The way we’re looking at it is they’re asking for more administrative oversight of claims. So in other words, adding another layer, when a claim’s denied, and it sounds to us like that could potentially lead to slower claims processing and also more expensive claims processing,” said Friedlander.

This bill follows California’s legislation, which ensures that healthcare providers make medical decisions, not AI. The Florida Medical Association supports the bill.

Jewett added, “This just will establish the ground rules for the insurance companies to know you can go a certain length.”

The bill aims to balance innovation with consumer protection, emphasizing the importance of human judgment. It requires approval from two more committees before reaching the full Senate. A related House bill has also been filed.