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Panel Discussion on the Current and Future Use of Artificial Intelligence in the Insurance Industry.
Members of a House committee on Tuesday took an early look at what laws or regulations, if any, may need to be considered for the use of artificial intelligence by insurance companies. The House Insurance and Banking Subcommittee listened to a panel of experts on AI use by insurers, including a representative of a state consumer protection office, but mostly from trade groups for the insurance industry. The committee doesn't yet have legislation before it, but the panel discussion came as scrutiny around the country has increased over how insurers, particularly in the health insurance industry, are increasingly using AI and algorithms in decisions about claims and authorization of care. "We are aware of litigation across the country where, in the health care space, insurance companies are utilizing AI for denials and not having human review," said Rep. Hillary Cassel, R-Dania Beach, the panel's vice chair. "What law is on the books in Florida that's going to tell an insurance company that AI cannot be the sole basis for the denial of a claim whether it's health insurance, property etc.?" Insurance industry officials say generally that existing laws that cover how insurance companies must operate cover the actions of the insurer, regardless of the technology used. "If a practice is prohibited for a human to do on behalf of an insurance company, it is prohibited for AI to do," said Paul Martin, vice president of state affairs for the National Association of Mutual Insurance Companies. "We are of the mindset that any decision made or any action taken by an insurance company, be it by a person, a human, an AI platform, whatever, all of that is governed by Florida law." Cassel was among the legislators who filed legislation during the 2025 session seeking to prevent AI from being the sole element in claim denial decisions. Neither Cassel's bill (HB 1555), nor any of the others (SB 794, SB 1740, HB 1433), made it to a floor vote. None of the members on the panel committed to filing similar legislation for the coming year, though some made clear through their questioning that there remains interest in additional rules. Pluribus reported Tuesday that lawmakers in 46 states have introduced more than 250 bills dealing just with the role of AI in health care. According to the consulting firm Manatt, 27 measures have been enacted in 17 states and three more are awaiting the governor's approval in California.
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