CBS12 News recently aired a troubling report, 1 shared by FAPIA, asking whether artificial intelligence is unfairly denying hurricane insurance claims in Florida. It’s a fair question. The Florida legislature is properly asking questions.
As technology races ahead, insurers are increasingly turning to AI to speed up claims, detect fraud, and streamline underwriting. Optimistically, this could mean greater efficiency, faster payments, and better decisions for policyholders. But without transparency and oversight, the same technology can quietly deny justice.
AI is not coming to the insurance industry. It’s already here. Claims decisions are increasingly data-driven and algorithm-guided. Within a decade, we may not even think of “AI in claims” as a distinct concept. It will simply be part of how insurance operates. Yet when technology begins replacing human judgment, especially in something as consequential as a property insurance claim, policyholders deserve to know.
That’s why the National Association of Insurance Commissioners (NAIC) acted in 2023, adopting a Model Bulletin on the Use of Artificial Intelligence by Insurers. It lays out clear expectations: insurers must have documented AI governance programs, test for bias, maintain human oversight, and ensure their systems comply with existing laws against unfair trade practices and unfair claim settlements. It’s a thoughtful, forward-looking framework designed to preserve accountability in an age of automation.
Florida should follow that lead. With our unique exposure to natural catastrophes and the growing use of digital tools in claims handling, transparency isn’t optional. Consumers have a right to know whether an algorithm influenced their payment or denial, and regulators must have the authority to review those systems for fairness and compliance.
I noted this emerging issue earlier this year in When Artificial Intelligence Becomes Wrongful Intelligence in Claims Handling:
Allstate’s Chief Information Officer openly acknowledged that AI is responsible for composing claims-related emails, with human adjusters merely reviewing them for accuracy. This admission was met with an immediate—and somewhat baffling—attempt by Allstate’s media relations team to erase these statements from the public record, even going so far as to pressure journalists to delete direct quotes from their executive.
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The insurance industry markets AI as a tool to improve accuracy, reduce costs, and expedite claims. In theory, this should benefit both insurers and policyholders. But the Allstate controversy exposes a more troubling reality: AI is being used in ways that lack transparency, and when questioned, companies may seek to rewrite the narrative rather than provide clear answers. If an executive’s own words about AI-driven processes can be dismissed as a mistake or “misinterpretation,” what does that say about the accountability of these systems?
AI can and should be a force for good in insurance. But as the CBS12 story highlights, it must serve the public interest and not obscure it behind a digital curtain. The insurance industry has always prided itself on understanding risk. The next frontier is ensuring that artificial intelligence doesn’t become one more peril for policyholders to endure.
Thought for the Day
“Technology is a useful servant but a dangerous master.”
—Christian Lous Lange
1 Jamilka Gibson, “Is Artificial Intelligence unfairly denying insurance claims in Florida?” CBS12 News (Oct. 23, 2025). Available online at https://cbs12.com/news/local/is-artificial-intelligence-unfairly-denying-insurance-claims-in-florida-hurricane-milton-florida-october-22-2025