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Your Friday Five

Every week we distill 200+ insurance, legal, and market-risk articles into signals your board needs to know.

Three that caught our attention this week:

• Florida's insurance commissioner filed bills that will require humans in the loop for carriers using AI to decide claim denials.
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• We summarized the best podcast of the past 30 days in our space from Lowenstein Sandle on New York courts raising the bar for claims handling documentation.
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• Manulife committed $350 million to longevity for its policyholders.

Florida Moves Toward AI Oversight in Claims

Summary

Two bills in Tallahassee would require human involvement whenever a claim is denied.

Rep. Hillary Cassel filed HB 527 on Monday. Sen. Jennifer Bradley filed an identical bill, SB 202, back in October. House Speaker Daniel Perez declared December 8-12 "Artificial Intelligence Week," with subcommittees examining AI across their jurisdictions.

Commissioner Michael Yaworsky outlined his framework to the Senate Banking and Insurance Committee: disclosure when AI is used, auditing that confirms systems do what they're supposed to do, and a "human in the loop" who actually understands the technology.

He's not calling for AI elimination. "I'm not an opponent of AI," he told lawmakers, but he wants carriers to be able to explain what their systems do.

The backstory: regulators recently flagged a health insurer filing that used an off-the-shelf AI solution. When asked how the mechanism worked, the company said “they didn't know.” 😳

(source: Florida’s insurance commissioner wants to oversee companies’ AI use)

So what?

Florida is signaling that AI governance documentation is coming.

Yaworsky's framework…disclosure, auditing, and human oversight. It isn't law yet, but the bills are filed, AI Week is on the calendar, and the regulatory direction is clear.

For Monday morning: if someone asked your team to explain what your AI systems do, could they?

If the answer is uncertain, that's worth addressing before this approach spreads.

New York Raises the Bar for Claims Handling Documentation

Summary

Lowenstein Sandler's Don't Take No For An Answer is one of the better legal focused insurance podcasts out there.
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Their recent episode on New York bad faith cases is worth the listen — or you can just read this. The key case: Rockefeller University v. Aetna Casualty & Surety Company. The Appellate Division affirmed that claims handling practices, and not just settlement decisions, can create liability exposure.

The court held that viable claims existed based on the failure to promptly resolve claims, ignoring requests for copies of legacy policies, failing to issue coverage decisions, refusing to properly investigate, and pressuring the insured to discontinue coverage litigation.

The traditional standard focused on whether a carrier refused to settle within policy limits.

This decision looks at the whole claims lifecycle. The investigation pace, communication frequency, and clarity of coverage positions. (source:https://www.lowenstein.com/news-insights/podcasts-listing/bad-faith-no-more-new-york-courts-shift-the-insurance-paradigm)

The LION Lens

What happened — NY Appellate Division affirmed that "wait and see" claims handling strategies can create liability exposure beyond the traditional failure-to-settle standard.

Why it matters — Documentation of the claims process itself is now as important as the coverage decision. Every touchpoint between carrier and insured becomes part of the compliance record.

Practical implications — Carriers without documented claims handling protocols face exposure that carriers with disciplined processes avoid.

So what?

The Rockefeller decision signals a shift in what courts examine when evaluating claims handling.

The traditional bad faith analysis asked a binary question: did the carrier refuse to settle within policy limits? The new standard asks process questions…Was the investigation timely? Were coverage positions communicated clearly? Were information requests reasonable or dilatory?

For carriers, this creates a documentation imperative.

Generic reservation of rights letters may not satisfy the communication standard. Serial requests for information may look like delay tactics rather than legitimate investigation. The court specifically noted that pressuring an insured to discontinue coverage litigation can create exposure.

Carriers with documented claims workflows — clear timelines, standardized communication templates, defined escalation protocols — are positioned for this environment.

Those operating on informal processes face the gap.

The LION POV

Here's what we're seeing carriers prioritize:

• Map claims communication touchpoints now. Document every interaction from first notice through resolution. Identify where delays or documentation gaps could create exposure under the new standard.
• Standardize coverage position letters. The court scrutinized how and when coverage decisions were communicated. Template language reviewed by counsel reduces inconsistency and creates defensible records.
• Review legacy policy search protocols. The Rockefeller court specifically cited ignoring requests for decades-old policies as a factor. Carriers need documented procedures for responding to historical policy searches.

The carriers that treat this as a compliance opportunity will strengthen their processes. Those that wait for the next decision may find themselves responding to litigation.

Want to discuss how these standards affect your claims operations and your risk profile? Contact LION Specialty for a confidential review.

Manulife Bets $350 Million That Healthspan Is the Future

Summary

We talk about wellness a lot around here — Blue Zones, the longevity research, the gap between how long people live and how well they live. So when a major carrier puts $350 million behind the same idea, we pay attention.

Manulife just launched the Longevity Institute. The thesis: people are spending up to 20% of their lives in poor health, and nearly 40% face financial insecurity as they age. The Institute will fund research, advocacy, and community investment aimed at closing that gap.

Partnerships include MIT's AgeLab (they developed the Longevity Preparedness Index) and the Milken Institute's work on aging-in-place infrastructure. In the U.S., it operates as John Hancock Longevity Institute.

(source: https://longevity.technology/news/insurance-giant-launches-350m-longevity-institute/)

So what?

Manulife is betting that carriers who invest in policyholder health will see it in their loss ratios.

Traditional life and health models price risk off mortality and morbidity tables. Manulife's adding a variable: what if carriers can actually influence the gap between lifespan and healthspan?

This affects more than life insurance.

Annuity pricing, long-term care exposure, retirement products — all of it shifts when healthspan assumptions change.

Whether this investment generates returns depends on execution. But the strategic direction is clear: at least one major carrier believes that proactive health engagement is the future of insurance economics.

The Bottom Line

Process discipline is becoming a competitive advantage across the industry.

Carriers with documented protocols, explainable technology, and clear communication standards are positioned well for 2026. Those operating on informal processes face growing compliance exposure.

That's why we created a firstofnits kind free five day email course to help you:

• Secure better D&O insurance
• Learn how to avoid common policy mistakes
• Protect your personal assets: Understand your potential liability

​>>>Get the D&O Contract Vigilance Blueprint​

Don't wait until a claim hits to find out your institution is under-protected.

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Stay Covered,

Natasha & Mark

Co-Founders and Managing Partners

LION Specialty

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