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“Good Hands” Get Slapped: Allstate pays for Claims Practice Abuses

Allstate Insurance has long been criticized for its treatment of injury victims. The company uses computer software, among other things, to decide the settlement value of injury claims.

Because the software, called Colossus, is not readily available to those outside the insurance industry, it is impossible to check the software for errors or computations designed to pay claims unfairly. Lawyers for injury victims have long complained that Colossus does not pay claims fairly. In addition, the company has paid incentives to claims adjusters to minimize payouts to injury victims.