Artificial intelligence is quickly changing nearly every industry, and the insurance world is no exception. From speeding up claims processing to identifying fraud, AI has the potential to make insurance more efficient. But what happens when AI tools begin making decisions that directly affect homeowners—especially decisions about policy rates, coverage, or claim denials?

That’s the question currently unfolding in Florida, where the state’s Insurance Commissioner, Michael Yaworsky, is urging lawmakers to take a serious look at how insurance companies are using AI. And for homeowners—especially those in Florida’s already challenging insurance market—these conversations matter more than ever.

In this blog, we’ll break down what Florida’s leaders are proposing, why it matters, and what homeowners should understand as AI becomes more deeply embedded in the insurance process.

AI in Insurance: A New Era With New Risks

AI is being used more and more by insurance companies across the country to assess risk, handle claims, determine premiums, and identify fraud. In theory, this is a good thing. AI is quick, effective, and able to analyze vast amounts of data—much more than a human could.

However, AI is only as good as its programming, just like any other tool. If a system is built on incomplete, biased, or misunderstood data, the results can be harmful. And in insurance, the consequences could mean:

• Incorrect claim denials

• Inaccurate premium increases

• Delays in essential payments

• Homeowners struggling to appeal AI-generated decisions

This is particularly troubling in Florida, where families are already under stress due to rising insurance costs and a shortage of carriers.

Recognizing these risks, Insurance Commissioner Michael Yaworsky has urged lawmakers to take action—not to ban AI, but to ensure it’s used responsibly and transparently.

What Florida’s Insurance Commissioner Is Pushing For

During a recent Senate Banking and Insurance Committee meeting, Yaworsky emphasized that he is not against AI. Instead, he believes the state must ensure companies use it correctly.

Here’s what he is proposing:

1. Clear Disclosure When AI Is Being Used

Homeowners should know when AI is involved in making decisions that affect their insurance. Today, many consumers may not realize that computers—not humans—are evaluating their claims or premiums.

Yaworsky believes insurers should be transparent so regulators and consumers understand how decisions are being made.

2. Auditing AI Systems

Regulators need the ability to inspect and understand the AI systems companies use. Without audits, there’s no way to guarantee the technology is accurate, fair, or compliant with Florida law.

3. A “Human in the Loop”

One of the most important proposals is ensuring that at no point are AI systems acting without responsible human oversight.

Yaworsky shared a troubling example: regulators once discovered a health insurance company using an AI tool the insurer couldn’t explain. When asked what the AI actually did, the company responded, “We don’t know.”

For homeowners, that’s alarming. You don’t want an algorithm nobody understands making decisions about your roof claim or hurricane damage evaluation.

4. Ensuring Regulators Know When AI Is Used

Yaworsky stressed that the state must be aware of every instance of AI is involved in an insurance process, especially when it impacts coverage or payments.

New Florida Bills: Humans Must Make the Final Call

Two Florida lawmakers—Rep. Hillary Cassel and Sen. Jennifer Bradley—have introduced matching bills (HB 527 and SB 202) designed to make sure AI cannot be the final decision-maker in insurance claim denials.

These bills would require:

• A qualified human professional to review any claim denial

• AI to be used only as a tool, not a replacement for human judgment

• Greater transparency in how insurers evaluate and deny claims

For Florida homeowners frustrated with rising premiums and claim disputes, these bills could provide an extra layer of protection.

Why This Matters for Homeowners and Real Estate Consumers

Whether you’re a homebuyer, seller, investor, or long-time resident, insurance plays a major role in your financial well-being. Here’s how AI regulation may impact you.

1. More Fairness in Claim Decisions

If your roof is damaged in a storm, you don’t want a flawed AI tool deciding the claim is “ineligible” because of inaccurate data or misinterpreted images. Human oversight adds accountability.

2. Clarity During Insurance Shopping

When homeowners know AI is being used, they can ask better questions:

• How does this AI rate my risk?

• What data does it use?

• Can I appeal an AI-generated decision?

Knowing these things can help you shop smarter.

3. Better Transparency for Real Estate Buyers

If insurance companies begin relying more on AI, premiums and eligibility might shift. Buyers need to understand how decisions are made—especially in a state like Florida, where insurance challenges can be deal-breakers.

4. Reduced Risk of Blockchain-Style “Tech Confusion”

We’ve seen new technologies enter markets quickly, often before regulators can catch up. AI is no different. Oversight helps ensure the tech enhances the insurance process rather than creating confusion, errors, or unfair outcomes.

The Bigger Picture: Florida’s “AI Week”

Florida lawmakers have declared December 8–12 as “Artificial Intelligence Week,” with committees across the House reviewing how AI is affecting industries like:

• Insurance

• Education

• Real estate

• Public safety

• Healthcare

This signals something important: Florida is positioning itself as a leader in shaping how AI should be used in critical industries.

For homeowners, that’s good news. More attention means better policy—and better consumer protection.

Why Homeowners Should Care Now

AI is already influencing the insurance you pay for, but most homeowners do not notice it yet. The sooner Florida establishes clear rules, the better protected homeowners will be from:

• Unfair premium hikes

• Misinterpreted property data

• Claim delays

• Improper denials

• Algorithms that “learn” bad habits

Technology will only continue to advance. The question is whether the systems making decisions remain fair, transparent, and accountable.

Thanks to recent discussions in Florida’s Legislature, those protections may be on the way.

Frequently Asked Questions (FAQ)

1. Is AI already being used by insurance companies in Florida?

Yes. Many companies use AI to process claims, set premiums, and detect fraud. What’s changing is the state’s desire to regulate and oversee how that AI works.

2. Can AI deny a homeowner’s insurance claim?

Currently, some insurers may use AI tools to evaluate claims—but proposed bills would require that a human makes the final decision on any claim denial.

3. Why are regulators worried about AI?

Because some insurers use third-party AI tools they cannot fully explain or control. Regulators want transparency to protect homeowners from unfair or inaccurate decisions.

4. Will these new rules increase insurance rates?

The proposed changes focus on transparency and accountability, not costs. In many cases, they could help prevent unjustified rate hikes or denials.

5. How can homeowners protect themselves?

• Use an insurance agent who will explain how your insurer uses AI

• Ask whether AI tools influence your premiums or claim evaluations

• Keep documentation and records for every claim

• Follow legislative updates, especially on HB 527 and SB 202

Final Thoughts

AI has the power to create a more efficient insurance system—but without oversight, it also has the potential to create confusion and unfair outcomes for homeowners. Florida’s push to regulate AI is a promising step toward ensuring the technology works for consumers, not against them.

For homeowners, transparency, fairness, and human judgment should always remain at the center of insurance decisions. And with new legislation on the horizon, Florida may soon set a national example for responsible AI use in the insurance industry.