WEST PALM BEACH, Fla. — A San Francisco-based insurance company is bringing artificial intelligence technology to Florida’s insurance market, offering a new approach to policy writing as the state continues to grapple with coverage challenges.
Stand Insurance has received approval from the Office of Insurance Regulation and plans to begin making takeout offers to Citizens Property Insurance policyholders starting in December.
WATCH BELOW: New AI-driven insurance company enters Florida market
New AI-driven insurance company enters Florida market
The company got its start writing policies in wildfire-prone California, applying what it describes as physics-based models to assess how structures can withstand weather events. Stand is now bringing that same approach to Florida’s hurricane-prone market.
“To see some companies popping up and doing things differently, it’s good for the industry,” said Dr. Charles Nyce at Florida State University.
However, Nyce expressed some caution about AI’s current limitations in insurance.
“When we start talking about things like homeowners insurance as an example, I think there are some areas where it can be used in very generic type risks, standard stuff. When we start getting into the more unique things, I think there’s a lot left to be desired in the AI models, especially how they’re trained,” Nyce said.
This comes as Florida lawmakers earlier this month pressed insurance executives about their use of artificial intelligence technology. Industry officials emphasized the need for careful implementation.
“We want to be careful and work with our IT people to make sure it’s being done in the right way,” said Thomas Koval of the Florida Insurance Council. “It’s not like we’re going to turn everything on to Google and ask, ‘should we pay this claim?'”
Stand’s entry into Florida represents the latest attempt to address the state’s ongoing insurance coverage crisis, which has left many homeowners struggling to find affordable policies.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
Matt Sczesny is determined every day to help you find solutions in Florida’s coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
