AI in insurance, checked dailyWednesday 28 October 2026
The Renewal Report
News and findings on AI in insurance. Every item with its source, its evidence and what it means for a book of business.For agencies, MGAs and carriers
The DeskMyth Vs Mechanics

The AI claim-denial cases prove less than the headlines say.

Line
Myth Vs Mechanics
Tier
Allegation
Scope
Two court orders read in full; later docket entries listed, not read
Runs on
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Reviewed
16 September 2026

The piece

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As posted

The AI claim-denial cases prove less than the headlines say. The "90% error rate" is an allegation. The "1.2 seconds of review" is an allegation. In one case the tool is pre-set criteria, not generative AI; in the other, the defendant denies using the tool at all.

Both survived a motion to dismiss. Neither has a finding. The usable lesson is in the Cigna order: an algorithm deciding "so long as a medical director pushes the button" is not a human decision.

Sources and tier: therenewalreport.com/desk/f-claims

Sources

  • Estate of Lokken v. UnitedHealth Group, D. Minn. No. 23-cv-3514, Doc. 91, 13 Feb 2025 — motion to dismiss granted in part, denied in part; allegation
  • Kisting-Leung v. Cigna, E.D. Cal. No. 2:23-cv-01477, Doc. 55, dated 30 Mar 2025 — allegation
  • Kisting-Leung order, p. 15 — the court's characterization of a reading it found inconsistent with the plan's plain language