Tag Archives: InsuranceClaims

Does The Insurance Industry Intentionally Low Ball Claims?

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,…
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