Copyright Baltimore News
Artificial intelligence (AI) is transforming industries—from enhancing photo filters to powering self-driving cars. Now, it’s reshaping how insurance claims are processed, especially in storm-prone states like Florida. But as AI speeds up decisions, some worry it may be unfairly denying coverage to homeowners who need it most. In Florida, where homeowners already pay some of the highest insurance premiums in the country, insurers are increasingly relying on AI to handle claims after major storms. Industry experts say the technology promises faster resolutions and improved accuracy. See Also: “These applications increase efficiency, improve accuracy, and lead to faster resolution for policyholders,” said Insurance Information Institute Florida Spokesman Mark Friedlander. During a house insurance and banking subcommittee meeting earlier this month, Director of Consumer Services at the Florida Department of Financial Services Sean Fisher, said many consumers don’t even realize AI is involved in their claims. “Consumers aren’t generally aware that AI has been used to underwrite coverage, deny claims, or determine the amount of the offer being presented,” Fisher said. In 2024, Florida’s average homeowner insurance claim denial rate hit 46.7%, far above the national average. The Florida Office of Insurance Regulation attributes much of this to Hurricane Milton, which caused over $4.7 billion in estimated insured losses. More than 92,000 homeowners were denied claims for various reasons. George Bustillo was impacted and knows first hand what it's like to deal with insurance companies. His payout didn’t come close to covering the cost of rebuilding after tornadoes from Hurricane Milton devastated his home. “The dog went flying, the house exploded. I thought I was going to be dead,” Bustillo recalled. “You’re on your own. Local government won’t help you, federal government won’t help you, and the insurance companies are out there to manage their profits—not to be helpful to you.” Although Bustillo is unaware if AI played a role in his claim which was delayed, he said he has see how some of his neighbors have not been as fortunate as he has and said he believes human involvement in insurance claims is vital. “Some of the decisions the insurance companies made don’t make sense to me," Bustillo said. "Maybe it is flawed, and maybe it is related to AI.” Florida lawmakers are now pushing for regulations that would require human review before any claim is denied. “What law in Florida is on the books that’s going to tell an insurance company that AI cannot be the sole basis for the determination of a denial of a claim?” asked State Representative Hilary Cassel during a recent meeting. While complaint data from the Florida Department of Financial Services shows only three instances since 2019 where customers alleged AI delayed or underestimated their claim, critics like Cassel say that number may not reflect the full picture. She is among those calling for more transparency. “We’re talking about people’s life and health, and every second usually matters in those situations. Having a human review those denials is extremely important,” Cassel said. As AI continues to evolve, so does the debate over its role in critical decisions like insurance claims. Florida lawmakers hope to introduce new rules aimed at ensuring fairness and accountability—especially when billions of dollars and thousands of lives are at stake. Find more ways to stay up to date with your latest local news. to get the day's top headlines delivered right to your inbox. for the biggest stories and can't miss video.
