AI incident
Algorithm auto-denied insurance claims at scale
Health insurer · 2023
Organisation
Health insurer
Year
2023
Failure mode
Automation harm / over-reliance
Severity
critical
Domain
Insurance pricing / risk
Agentic
Yes — an AI system acting, not just advising
Source
Investigative reports, 2023
What happened
Claims were reportedly denied in bulk with little individual clinician review.
What would have prevented it
Human review of adverse decisions + audit trail
Requirements this maps to
Editorial cross-reference from our prevention note — it is not a finding that any law was breached.