Florida Bill Targets AI-Only Denials in Insurance Claims

Florida Representative Hillary Cassell introduced House Bill 527, which aims to prohibit insurance claim denials based solely on automated artificial intelligence (AI) outputs. This proposal is motivated by concerns over fairness and accountability in claims handling, particularly in response to recent automated denials of hurricane claims in Florida. The bill seeks to restore confidence among policyholders by ensuring a human element remains in the claims decision process. The increasing integration of AI in the insurance industry, especially for claims processing, has generated debate over balancing technological efficiency against consumer protections. Industry stakeholders acknowledge AI's growing role but express concern that restricting its use in claims adjudication could hinder efficiency and delay claim resolutions for consumers. The bill has passed the House Subcommittee on Banking and Insurance and will continue through the legislative process, signaling ongoing discussions about regulatory frameworks for AI in insurance claims in Florida.