PALM BEACH COUNTY, Fla. — Rep. Hillary Cassell presented her bill to the House Subcommittee on Banking and Insurance, where it gained approval. The legislation would prohibit insurers from denying claims based exclusively on automated AI outputs.
WATCH BELOW: 'I definitely agree with that. I think it takes the human element out,' Gary and Tracy tell WPTV
"The legislation is about accountability and restoring confidence for policyholders," Cassell said during the hearing.
The use of artificial intelligence has expanded rapidly across industries, particularly in insurance, where denied hurricane claims in Florida have raised questions in recent years about automated decision-making processes.
Gary and Tracy, new Florida residents, expressed support for the proposed restrictions on AI-driven claim denials.
"I definitely agree with that. I think it takes the human element out. There's not that emotion involved," Tracy said.
The debate reflects broader tensions about AI's role in the insurance industry. At an insurance summit in Orlando this month, Florida State University professor Charles Nice discussed the technology's growing influence.
"I think these kinds of technology and what we do and how we deliver our product is going to be vastly different," Nice said.
Industry leaders at the summit acknowledged AI as something that cannot be ignored, but they've expressed concerns about the proposed legislation to lawmakers.
"We have concerns that HB 527 imposes some requirements that could limit the use of AI in claims handling, reducing efficiency and speed, ultimately to the detriment of consumers who expect timely resolution," industry representatives told legislators.
The bill now advances through the legislative process, with more debate expected at the state capitol as lawmakers weigh consumer protection against industry efficiency concerns.
Matt Sczesny is determined every day to help you find solutions in Florida's coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
