CBS12 Information lately aired a troubling report, 1 shared by FAPIA, asking whether or not synthetic intelligence is unfairly denying hurricane insurance coverage claims in Florida. It’s a good query. The Florida legislature is correctly asking questions.
As know-how races forward, insurers are more and more turning to AI to hurry up claims, detect fraud, and streamline underwriting. Optimistically, this might imply higher effectivity, sooner funds, and higher selections for policyholders. However with out transparency and oversight, the identical know-how can quietly deny justice.
AI shouldn’t be coming to the insurance coverage trade. It’s already right here. Claims selections are more and more data-driven and algorithm-guided. Inside a decade, we might not even consider “AI in claims” as a definite idea. It’ll merely be a part of how insurance coverage operates. But when know-how begins changing human judgment, particularly in one thing as consequential as a property insurance coverage declare, policyholders need to know.
That’s why the Nationwide Affiliation of Insurance coverage Commissioners (NAIC) acted in 2023, adopting a Mannequin Bulletin on the Use of Synthetic Intelligence by Insurers. It lays out clear expectations: insurers should have documented AI governance applications, take a look at for bias, preserve human oversight, and guarantee their programs adjust to current legal guidelines towards unfair commerce practices and unfair declare settlements. It’s a considerate, forward-looking framework designed to protect accountability in an age of automation.
Florida ought to comply with that lead. With our distinctive publicity to pure catastrophes and the rising use of digital instruments in claims dealing with, transparency isn’t elective. Customers have a proper to know whether or not an algorithm influenced their cost or denial, and regulators should have the authority to assessment these programs for equity and compliance.
I famous this rising concern earlier this yr in When Synthetic Intelligence Turns into Wrongful Intelligence in Claims Dealing with:
Allstate’s Chief Info Officer overtly acknowledged that AI is liable for composing claims-related emails, with human adjusters merely reviewing them for accuracy. This admission was met with a direct—and considerably baffling—try by Allstate’s media relations staff to erase these statements from the general public file, even going as far as to strain journalists to delete direct quotes from their govt.
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The insurance coverage trade markets AI as a software to enhance accuracy, cut back prices, and expedite claims. In concept, this could profit each insurers and policyholders. However the Allstate controversy exposes a extra troubling actuality: AI is being utilized in ways in which lack transparency, and when questioned, firms might search to rewrite the narrative somewhat than present clear solutions. If an govt’s personal phrases about AI-driven processes could be dismissed as a mistake or “misinterpretation,” what does that say concerning the accountability of those programs?
AI can and ought to be a power for good in insurance coverage. However because the CBS12 story highlights, it should serve the general public curiosity and never obscure it behind a digital curtain. The insurance coverage trade has at all times prided itself on understanding danger. The following frontier is making certain that synthetic intelligence doesn’t develop into another peril for policyholders to endure.
Thought for the Day
“Know-how is a helpful servant however a harmful grasp.”
—Christian Lous Lange
1 Jamilka Gibson, “Is Synthetic Intelligence unfairly denying insurance coverage claims in Florida?” CBS12 Information (Oct. 23, 2025). Out there on-line at https://cbs12.com/information/native/is-artificial-intelligence-unfairly-denying-insurance-claims-in-florida-hurricane-milton-florida-october-22-2025
