As the Florida Legislature pursues issues surrounding artificial intelligence, state Insurance Commissioner Michael Jaworski wants to ensure regulators have proper oversight. Utilization of AI by insurance companies.
“Responsible AI governance is critical,” Jaworski told the Senate Banking and Insurance Committee last week. “I’m not against AI, but I think it needs to be deployed responsibly. There are some companies that seem to be implementing AI in a much more responsible way than others.”
Member of Parliament Hilary CasselR-Dania Beach, filed a bill (HB 527) on Monday that would ensure humans make decisions about insurance claim denials. Cassel’s bill is identical to a bill (SB 202) introduced in October by Sen. Jennifer Bradley (R-Fleming Island).
Jaworski didn’t go that far when he outlined his ideas to a Senate committee last week. He said he wants to address issues such as disclosure when artificial intelligence is used, auditing and understanding that companies have “human beings who know what their systems are doing and have the expertise to do it.”
“This is a policy decision for Congress,” Jaworski said. “We don’t see AI as a necessary benefit to eliminate its use. That’s for the legislature to decide. But we want to provide a pathway for regulators to know that when AI is being used, it’s being used responsibly.”
Florida lawmakers consider using AI across sectors
With the explosive growth of artificial intelligence, lawmakers are turning their attention to the technology in areas such as insurance and education. speaker of the house Daniel PerezThe Miami Republican Party last week sent a memo to lawmakers saying the week of Dec. 8 to Dec. 12 would be “Artificial Intelligence Week” in the House, with subcommittees focusing on AI issues in their areas of jurisdiction.
“Everyone recognizes that AI has the potential to open up new economic prospects,” Perez said in the memo. “At the same time, we are also seeing stories about how AI can be misused, negatively impact education, and harm emotionally vulnerable users. As policymakers, the rapid emergence of this complex technology complicates our understanding of this issue. And, as we have seen with social media, short-term legislative choices can have serious long-term consequences.”
The House Insurance and Banking Subcommittee held a panel discussion on artificial intelligence in October, and the panel of insurance and technology stakeholders said that insurance companies are using artificial intelligence in a variety of ways, including in claims processing. Panel members also sought to dispel concerns that the technology could be misused.
Paul Martin, vice president of national affairs for the National Association of Mutual Insurance Companies, told a House committee that AI is a “tool” whose use is regulated by existing insurance law.
“Anything that humans are prohibited from doing on behalf of insurance companies, AI is also prohibited from doing,” Martin said. “For insurance companies, artificial intelligence is not about competing with state laws and regulations.”
But during an appearance before a Senate committee last week, Jaworski said regulators had recently issued a warning on applications by companies that were using “off-the-shelf solutions.”
“We received a filing a while back from a medical company, which I won’t name, and the actuary looked at it and determined that they were fully aware that AI was involved,” Jaworski said. “When we asked companies, “What does this AI mechanism do?” their answer was “We don’t know.”
