Does The Insurance Industry Intentionally Low Ball Claims?

Posted on September 30, 2015 by Dan Christensen

Have you ever heard of Colossus? No, we are not talking about a video game or a character from Marvel Comics. Colossus is a computer program that evaluates insurance claims, but some experts believe that the insurance industry intentionally low balls claims using this program.

What Is Colossus?

The Colossus program—sold by Computer Sciences Corporation (CSC)—uses data from previously settled insurance claims to project the “best settlement” for a current claim. To arrive at these numbers, the program must be tuned by entering data such as the type of claim, injury type, and the accident severity value. This data is then used to project what the settlement offer should be for an open case.

Why Do Insurances Use Colossus?

Using this program has allowed insurance companies to hire less experienced adjusters, which has saved these companies lots of money, plus it has also provided savings by regulating claims payouts. However, some experts question whether a computer can truly evaluate the unique circumstances of a claim, and some wonder if the tuning data has been manipulated to produce low ball claims.

Is Colossus Tuning Being Regulated?

Worries over such manipulations were so deep that 47 states made Allstate, one of the nation’s largest insurers, promise to inform claimants when Colossus was used to assess their case. The incident also forced the insurer to change the way they tuned the program.

How Can Consumers Fight Low Ball Settlements?

There are many insurance companies using programs like Colossus to create low ball settlements, and these companies make that settlement seem inviting by delaying your case, but there are alternatives. Beacon Legal Funding provides settlement advances for the victims of personal injury. This advance can be used to help you pay for living expenses and medical bills while you wait for a fair and just settlement. Check out our easy online application for more information.

Beacon Legal Funding—Providing Funding Solutions



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