As Florida lawmakers weigh in on issues related to artificial intelligence, the state’s Insurance Commissioner Michael Yaworsky wants to make sure regulators can properly oversee insurance companies’ use of AI.
“Responsible AI governance is crucial,” Yaworsky told the Senate Banking and Insurance Committee last week. “I’m not an opponent of AI, but I think it needs to be deployed responsibly. I think some companies are doing it much more responsibly than others.”
Rep. Hillary Cassel, R-Dania Beach, introduced a bill Monday (HB 527) that aims to ensure humans make decisions about insurance claim denials. Cassel’s bill is identical to a measure (SB 202) filed in October by Sen. Jennifer Bradley, R-Fleming Island.
Yaworsky didn’t go that far last week when he outlined his ideas to the Senate committee. He said he wanted to address issues such as disclosure when artificial intelligence is used, auditing and understanding that companies have “a human in the loop who knows what this system does and has subject matter expertise.”
“This is a political decision by Parliament,” Yaworsky said. “We don’t see this as a necessary benefit to eliminate the use of AI. That’s a legislative decision to make. But we want to provide a pathway where, if it is used, it will be used responsibly, known to the regulator.”
With the explosive growth of artificial intelligence, lawmakers have begun to focus on the technology in areas such as insurance and education. House Speaker Daniel Perez, R-Miami, sent a memorandum to lawmakers last week saying the week of Dec. 8-12 would be “Artificial Intelligence Week” in the House, with subcommittees focusing on AI issues in the areas they oversee.
“We all recognize that AI can unlock new economic opportunities,” Perez wrote in the memo. “At the same time, we see stories about how AI can be misused, have negative effects on education, or harm emotionally vulnerable users. As policymakers, our understanding of the problem is complicated by the rapid emergence of this complex technology and, as we have seen with social media, short-term legislative choices can have serious long-term consequences.”
In October, the Insurance and Banking Subcommittee hosted a roundtable discussion on artificial intelligence, with a panel of insurance and technology executives saying insurers are using artificial intelligence in a variety of ways, including in claims processing. Panel members also attempted to allay fears that the technology could be misused.
Paul Martin, vice president of state affairs for the National Association of Mutual Insurance Companies, told the House panel that AI is a “tool” whose use is governed by already existing insurance laws.
“If a practice is prohibited for a human on behalf of an insurance company, it is prohibited for AI,” Martin said. “Artificial intelligence is not an end-all be-all for insurance companies around state laws or regulations.”
But during his appearance before the Senate committee last week, Yaworsky said regulators recently flagged a filing by a company that used an “off-the-shelf solution.”
“I won’t name the company, but a while ago a healthcare company filed with us and our actuaries, from what they thought, were smart enough to know that AI was involved,” Yaworsky said. “When we asked the company, ‘Well, what is this AI mechanism for?’ » Their response was: “We don’t know.”
