AI Integration in Florida's Insurance Market: Enhancing Underwriting Efficiency

AI Integration in Florida's Insurance Market: Insights from Patriot Select

St. Petersburg, Fla. — Florida's insurance landscape is rapidly evolving with technology, as local insurers increasingly adopt artificial intelligence (AI) to enhance operations amid growing market competition. St. Petersburg-based Patriot Select and Property Casualty exemplify this trend by leveraging AI to streamline processes and improve their service effectiveness.

Since gaining state approval, Patriot Select has capitalized on insurance reforms in 2022 and 2023, attracting 17 new insurers to Florida. The company's growth is significantly linked to its participation in the Citizens Property Insurance "depopulation" initiative, which transfers policies from the state-backed insurer. CEO John Rollins noted the increase in their policy portfolio from an initial target of 25,000 to 26,000, as they continue exploring new market opportunities.

The Role of AI in Underwriting and Risk Management

AI is pivotal in Patriot Select's strategy, particularly in underwriting and risk management. Rollins explained, "We aim to be efficiently present for customers via independent agents, ensuring rapid and precise underwriting decisions." Their AI systems incorporate publicly available data, including aerial and street-level imagery, as well as real estate photography, to assess potential risks effectively.

Patriot Select's head underwriter, Joe Price, highlighted their proprietary AI roof analysis tool, which evaluates roof conditions using visual data. The system assigns scores that guide underwriting decisions, with color-coded results indicating varying levels of insurability. This tool enables informed decisions based on accurate and timely data.

Regulatory Compliance and Human Oversight in Claims Processing

As technological advancements continue, the regulatory landscape is evolving. Florida legislators address AI-driven prior authorization delays and insurance regulation, emphasizing mandatory human intervention in final decision-making, particularly in claim denials. Representative Hillary Cassel stated, "No Floridian should have a claim denied solely by automated means."

Despite ongoing legislative discussions, which have advanced in the House but not yet in the Senate, many in the industry prioritize AI investments. A KPMG report found that 73% of insurance CEOs rank AI as a key investment focus. Rollins emphasized the importance of balancing AI benefits with human oversight to mitigate financial and reputational risks. "We can't afford to rely solely on AI for claims," he affirmed, highlighting Patriot Select's commitment to responsible AI use in the insurance industry.