ST. PETERSBURG, Fla. — As Florida legislators review the role of artificial intelligence in the insurance sector, one local company is demonstrating how it incorporates AI to thrive in Florida’s competitive insurance landscape.
GROWING AS A NEW INSURANCE COMPANY IN FLORIDA
Last April, we visited Patriot Select and Property Casualty Insurance after receiving state approval as one of the newest players in Florida’s insurance market. Since then, 17 new companies have emerged following the insurance reforms of 2022 and 2023.
“It’s small but is evolving into a bustling operation,” noted CEO John Rollins during a conversation with Tampa Bay 28 anchor Nadeen Yanes, who has extensively covered insurance issues in Florida.
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The company is rapidly expanding its portfolio by engaging in the Citizens Property Insurance “depopulation” initiative, which has allowed it to take on thousands of customers from Citizens.
“We aim to remove approximately 25,000 policies this year,” Rollins stated last April. This figure has now increased to about 26,000 policies and continues to rise as the company attracts homeowners shopping for insurance alternatives.
This is where AI plays a crucial role.
HOW AI CAN BE USED FOR INSURANCE
Rollins explained that Patriot Select utilizes artificial intelligence during the intake process to assess whether a homeowner qualifies for coverage.
“We aspire to be presented to more customers through independent agents, but we also want to underwrite those customers quickly and accurately,” he elaborated. “If we need to decline coverage, we want to do so promptly and with clear reasoning, and when we can approve a policy, we ensure we have the necessary data.”
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The firm employs publicly available data for its AI applications, acquiring aerial imagery of rooftops similar to how Google Street View captures street images. They also extract indoor photos from real estate platforms like Redfin and Zillow.
Joe Price, the head underwriter at Patriot Select, showcased their proprietary AI roof analysis tool.
“This is one of the tools I developed — an in-house roof condition analyzer,” Price explained. “While it’s easy to differentiate between good and bad roofs, some roofs fall into a gray area that can be difficult to evaluate.”
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Price processes visual data from homeowners’ wind mitigation reports into the AI analyzer.
“For instance, this roof has three-tab shingles and is about 18 years old. I evaluate it using the images; the more I feed into the system, the more it learns,” Price elaborated.
The AI system then rates the roof’s condition using a color-coded scoring mechanism.
“Green indicates a good condition, blue suggests it requires monitoring, and anything orange or pink signifies areas that need attention,” Price clarified.
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STATE LAWMAKERS LOOK TO REGULATE AI
As this innovation unfolds, state legislators are prioritizing the regulation of AI in this session. Bills have been filed in both the House and Senate that aim to require human oversight for final decisions, particularly regarding claim denials.
“While these tools can enhance speed and efficiency, no Floridian should ever face a claim denial based solely on automated assessments,” stated Representative Hillary Cassel while introducing the bill late last year.
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While the bill has successfully passed through House committees, it has yet to gain traction in the Senate.
A KPMG report surveying 110 insurance CEOs indicates that 73% view AI as a top investment priority.
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Rollins clarified that Patriot Select refrains from utilizing AI for claims decisions, assuring that human judgment is always paramount in final evaluations.
“At Patriot Select, we are not looking to assume the financial or reputational risks associated with cost-benefit analyses that might misuse AI. We cannot afford to operate under those circumstances,” Rollins emphasized. He reiterated that while AI is an efficient tool for responsible usage, it will not influence their claims decision-making.
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As Tampa Bay 28 Anchor Nadeen Yanes strives to aid viewers in navigating insurance complexities, she welcomes you to share your experiences. If you’ve faced insurance challenges or have important stories to share, we encourage you to fill out the form below.
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