Computer System Used To Underpay Injury Claims
By: Jeffrey Lapin
A new report issued by the Consumer Federation of America (“CFA”), Low Ball: An Insider’s Look at How Some Insurers Can Manipulate Computerized Systems to Broadly Underpay Injury Claims, details how major car insurance companies are using computers systems, primarily Colossus, to underpay injury claims. One of the authors of the Report, Mark Romano, the CFA’s Director of Insurance Claims Projects, was formerly Allstate’s “Colossus Subject Matter Expert,” the top expert for Allstate’s computerized claims system. Allstate, and other insurers using these types of systems to evaluate claims, use a variety of tactics to lower the amount of money offered to injured persons. This post will discuss Colossus, how it is manipulated to underpay injured people and what regulators can do to ensure fair settlement offers. […]
