Florida Insurance Commissioner Mike Yaworsky said state regulators welcome artificial intelligence in insurance - provided carriers can explain exactly how their automated systems work. In an interview for the 2026 Policy Makers Annual Report, Yaworsky, who also chairs the national committee on big data, AI, and analytics, discussed the operational boundaries for AI in the nation's most catastrophe-exposed market.
The interview, conducted by FOCUS President Pete Crowe, centers on a recent rate filing that included AI components the carrier could not explain. Yaworsky said that kind of opacity is a regulatory red flag. Florida's approach, he said, is disclosure rather than prohibition: insurers must demonstrate how their models function.
Human accountability over black boxes
Yaworsky said regulators don't license software or AI systems. They hold named, licensed professionals legally responsible for what those systems do. That means carriers need plain-language explanations of model outputs, not technical documentation that obscures decision-making.
"The elimination of the black box model" is a primary focus, according to the report. Florida's legislative initiatives require insurers to clearly demonstrate how their automated components function during rate filings. Silence on that front triggers regulatory friction.
For insurance executives, the takeaway is that regulators are shifting focus from evaluating algorithms in isolation to scrutinizing the human accountability behind the corporate entity. The full white paper outlines how these expectations are evolving alongside state-level tort reforms that affect capital retention and organic growth strategies over a 24-month horizon. Executives working through compliance standards can find related guidance in AI Learning Path for Policy Makers and AI for Insurance resources.
Claims handling under catastrophic stress
Yaworsky's office oversees a market that has absorbed three consecutive major storm cycles. Data from those events shows policyholder retention drops when claims processing becomes fragmented. Forcing consumers to resubmit documentation multiple times undermines brand equity, the report said.
Florida's Insurer Accountability Act requires carriers to maintain claims-handling procedures structured to withstand severe catastrophic events. Legacy operational models built for quiet seasons don't meet that standard, according to the report.
Structural investment for organic growth
As Florida's market stabilizes post-tort reform, sustainable competitive advantage depends on exposure management and long-term tech infrastructure - not relying on residual market takeouts. The report positions AI deployment as a cost-reduction tool for consumers, provided carriers maintain strict operational guardrails.
The full report, including complete interviews with state insurance regulators, is available at teamfocusins.com/policymakers/. Crowe and the FOCUS team will conduct interviews at Insurtech Connect in Las Vegas. Subject matter experts interested in participating can email matt.trujillo@teamfocusins.com.
Why this matters for insurance professionals
If your company uses AI in pricing, underwriting, or claims, assume a regulator will ask you to explain it in plain language. The filing that prompted Yaworsky's comments failed that test. Carriers that can't document how their models shape decisions should expect longer review cycles and heightened scrutiny - regardless of which state they operate in.
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