The Role of AI in Workers’ Compensation in Chicago
Artificial intelligence (AI) is transforming almost every industry imaginable, and the insurance world is no exception. Do workers’ comp insurance companies use AI to determine whether to accept or deny your claim? How could AI transform the world of workers’ compensation insurance in the future? These are valid questions, especially if you’re currently in the middle of a workers’ comp claim in Chicago.
Are Insurance Companies Allowed to Use AI in Illinois?
Insurance companies may be allowed to use AI when handling workers’ comp claims, although they must follow various Illinois regulations when doing so. These regulations are very new. Because they are so new, it is not clear how they might affect the insurance industry going forward. Illinois has enacted the strongest regulations against AI use in the field of healthcare insurance. In contrast, AI regulations for workers’ comp insurance are somewhat lacking for the time being.
That being said, the Illinois Department of Insurance has issued a bulletin on the use of AI across all insurance companies in the state. This bulletin directs all insurers to develop and follow written programs for the responsible use of AI in their insurance operations. These written policies must be detailed, and they must ensure AI use is consistent with existing insurance regulations in the state. Perhaps most notably, the policy must explain the extent to which humans are involved in the final decision-making process.
This would suggest that insurance companies are required to rely on humans when making the final decision on whether to approve or deny a workers’ compensation claim. However, the company may still use AI tools to assess risk, analyze data, and identify potential issues with claims.
If you believe that your claim was denied by an AI program without any human involvement, you may have the right to appeal the denial and bring the issue to the attention of insurance regulators in Illinois. This may be something worth exploring with an experienced workers’ compensation lawyer in Chicago.
Why Insurance Companies Are Likely to Increase Their Use of AI Solutions
Insurance companies are likely to seize upon AI solutions in the near future due to rising industry costs. Because the insurance industry is experiencing rising costs, it will likely adopt AI as an attempt to cut down on payroll expenses. The logic is simple: Why pay humans to handle claims when an AI program does it for free?
Can a Workers’ Compensation Lawyer in Chicago Help Me?
A workers’ compensation lawyer may be able to help if you’re struggling with a denied workers’ comp claim in Chicago. Artificial intelligence is transforming the insurance industry, but insurance companies still have to follow various regulations when responding to or denying claims. If you believe your claim was wrongly denied, speak with the Chicago workers’ compensation lawyers at Connolly Injury Law today to learn about your next potential steps.
Sources:
idoi.illinois.gov/content/dam/soi/en/web/insurance/companies/companybulletins/CB2024-08.pdf#:~:text=Consistent%20therewith%2C%20all%20Insurers%20authorized%20to%20do,with%20regulatory%20guidance%20outlined%20in%20Section%203.
insurancebusinessmag.com/us/news/workers-comp/us-workers-comp-market-faces-rising-costs-and-regulatory-shifts-in-2026-559400.aspx
