As Florida lawmakers delve into issues surrounding artificial intelligence, state Insurance Commissioner Michael Yaworsky wants to ensure regulators can provide proper oversight AI use by insurance companies.
“Responsible AI governance is critical,” Yaworsky told the Senate Banking and Insurance Committee last week. “I am not against AI, but I do think it should be used in a responsible manner. There are companies that I think do it in a much more responsible way than others.”
Rep. Hillary CasselDania Beach, R-, introduced a bill Monday (HB 527) that would ensure people make decisions about insurance claim denials. Cassel’s bill is identical to a measure (SB 202) introduced in October by Sen. Jennifer Bradley, R-Fleming Island.
Yaworsky didn’t go that far last week when he laid out his ideas before the Senate committee. He said he wants 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 that system does, and has expertise in that.”
“This is a policy decision for the Legislature,” Yaworsky said. “We don’t see it as a necessary benefit to eliminate the use of AI. That is a legislative decision that needs to be made. But we do want to provide a path where, if used, it is used in a responsible manner, known to the regulator.”
Florida lawmakers are exploring the use of AI in various fields
With the explosive growth of artificial intelligence, lawmakers have started looking at the technology in fields such as insurance and education. House Speaker Daniel PerezR-Miami sent a memorandum to lawmakers last week saying the week of Dec. 8 to Dec. 12 in the House of Representatives will be “Artificial Intelligence Week,” with subcommittees focusing on AI issues in the areas they oversee.
“We all recognize that AI can open new economic perspectives,” Perez wrote in the memo. “At the same time, we see stories about how AI can be misused, negatively impact education, or harm emotionally vulnerable users. As policymakers, our understanding of the issue is complicated by the rapid rise of this complex technology, and as we have seen with social media, short-term legislative choices can have serious long-term consequences.”
The House Insurance & Banking Subcommittee held a panel discussion on artificial intelligence in October, with a panel of insurance and technology officials saying insurers are using artificial intelligence in a variety of ways, including in claims handling. The panelists also sought to allay concerns that the technology could be misused.
Paul Martin, vice president of state affairs for the National Association of Mutual Insurance Companies, told the House of Representatives panel that AI is a “tool” whose use is governed by pre-existing insurance laws.
“If a human is prohibited from conducting a practice on behalf of an insurance company, AI is also prohibited,” Martin said. “Artificial intelligence is not an end goal for the insurance companies around a state’s statutes or regulations.”
But during his appearance before the Senate committee last week, Yaworsky said regulators recently flagged an application by a company that had used an “off-the-shelf solution.”
“I won’t name the company, but a while ago we got a request from a healthcare company, and our actuaries, from what they looked like, were smart enough to know that AI was involved,” Yaworsky said. “When we asked the company, ‘What does this AI mechanism do?’ Their response was, ‘We don’t know.'”
