Florida Legislation Seeks to Restrict AI-Driven Insurance Claim Denials

Rep. Hillary Cassell introduced legislation approved by the House Subcommittee on Banking and Insurance to prohibit insurers from denying claims based solely on automated AI decisions. The bill aims to enhance accountability and restore policyholder confidence amid increasing AI use in insurance claim processing, especially concerning hurricane claims in Florida. Industry leaders acknowledge AI's growing role but express concerns that the bill could limit AI-driven efficiency and slow claim resolutions. The legislation is under further review as lawmakers balance consumer protection with insurer operational needs.