Florida bill would restrict artificial intelligence use by insurance companies when denying claims

Proposal to limit AI denying insurance claims

Insurance companies could soon be mandated under Florida law to have a "qualified human professional" review all claims denials, rather than relying solely on artificial intelligence. FOX 13’s Kellie Cowan reports.

TALLAHASSEE, Fla. - Florida lawmakers are moving forward with a bill that would limit the use of artificial intelligence by insurance companies when denying claims.

Senate Bill 794

Big picture view:

Senate Bill 794, filed by Republican State Sen. Jennifer Bradley, would not ban the use of AI outright, but it would require insurers' decisions on claims to be reviewed by a "qualified human professional."

Dig deeper:

In recent years, artificial intelligence systems and machine learning algorithms have been used across the insurance industry in some pretty amazing ways – for instance, helping doctors to more quickly detect and diagnose diseases.

At the same time, there are concerns about inaccuracy and bias. This issue has already become a point of outrage in the world of health insurance, and Florida lawmakers are now hoping to establish more accountability in the home insurance market as well.

The use of AI in the insurance world has already sparked lawsuits in other states. Last year, California lawmakers passed a measure aimed at preventing insurers from making decisions about medical care based solely on AI.

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What they're saying:

Sen. Bradley acknowledges how useful AI can be in quickly gathering historical data and contrasting various claims scenarios. However, when it comes down to a decision that’s as critical as a denial of coverage, Bradley says that process must have human oversight rather than fully relying on a computer program that could be operating off of bad or biased data or code.

"We want to make sure that we strike the right balance between allowing innovation, but also protecting consumers from unaccountable algorithms," Sen. Bradley said. "And I'll continue to work on this issue and make sure that we end up in a good spot that protects consumers and allows efficiencies in the claims process."

Pictured: State Sen. Jennifer Bradley.

What's next:

The Florida Senate Banking and Insurance Committee approved the measure unanimously on Tuesday. It still has to clear two more committees before going to the full Senate.

A companion bill, House Bill 1555, has yet to go to a committee vote.

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The Source: Information for this story was gathered by FOX 13's Kellie Cowan.

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