Software utilized by Insurance Carriers to Limit the Value of a Claim
As a Clearwater Automobile Accident Attorney, we routinely deal with insurance carriers that have implemented software systems designed to mitigate the value of a claim. A majority of insurance carriers utilize software to evaluate and determine settlement value in injury cases. Allstate among other insurance carriers began making use of Colossus to simplify what adjusters are evaluating. While Colossus may be good for data input, there is no way to directly tell what information the adjuster has input. Each insurance carrier utilizes its very own software system (many are derivatives of Colossus) that contains unique formulas.
Colossus does not consider every day life incidents, normal life activity, or other valid indications of pain and suffering. The major downfall of such software is that it’s not a starting point, but an absolute, final answer on the value that should be given to the injured.
Insurance companies are not likely to disclose Colossus, and they will likely not tell you if they have licensed the software. According to Computer Sciences Corporation, the company that produces Colossus, it is used by more than 50% of the nation’s claim adjusters and by more than 300 insurance companies. Out of the top 20 US Property and Casualty Insurers, 13 are using Colossus see the link for reference Colossus.
CSC, Computer Sciences Corporation, maintains that Colossus can evaluate more than 600 type of injuries based on 10,000 different rules. This system allows adjusters will acquire a figure from Colossus software and then propose it to you to settle your injury claim.
Without human interaction there is no way Colossus can account for your emotional distress, the loss of consortium (relationship), or the loss of life experiences because you no longer can take pleasurable walks in the park, or ride a bike ride without feeling significant amounts of pain. Unless all of your conditions are included, it should not be fair to measure all you have endured and reduce your settlement to a dollar value solely based upon factors that may not reflect your total condition.
Unfortunately, Colossus is designed to remove human emotion from the equation. The software is limited in that it does not apply common sense to claims handling. Rather, each individual criteria of the case (property damage, age of claimant, whether the client treated at an emergency room, etc…) is inputted by the handling Claims Adjuster and the software system inevitably spits out a number or settlement range. The system fails to account for the number of “human factors” a jury will consider if the claim proceeds to trial.
As a personal injury attorney and civil trial lawyer, I routinely deal with claims in which the adjuster has deviated from the covenant of good faith and fair dealings that is implied in every insurance policy. Colossus actually creates more problems for the applicable insurance carrier than it truly solves so long as the plaintiff attorney is committed to trying the case and obtaining a verdict in excess of the available coverage. This sets up the inevitable deposition questions for the handling claims adjuster as to how they truly valued the claim and the manner in which they arrived at their settlement offer.
Matthew A. Dolman, Esq., is a Clearwater based automobile accident lawyer and principal member of the Dolman Law Group. The Dolman Law Group is a Clearwater personal injury law firm located in central Pinellas County (ten minutes from St. Petersburg and fifteen minutes from downtown Tampa. The attorneys at Dolman Law limit their practice to first and third-party insurance claims stemming from a physical injury related to an automobile accident, motorcycle accident, insurance carrier bad faith, traumatic brain injury, premises liability, distracted driving, drunk driving, and wrongful death. We maintain an active statewide litigation practice. For more information, please contact: email@example.com