Computers have made life easier for people all over the world. You are learning about injury law from the convenience of your own home or a library. Insurance companies are using computers as well, but not for your benefit.
Big insurance companies like Allstate use a claims adjustment program called “Colossus” to evaluate cases. As a result, crucial information that could be used to give a more accurate and fair estimation of damages is often left out or slanted, reducing payouts to injury victims.
“Colossus” is a program that compares damages, including property damage and the nature and severity of an injury, and it computes data from similar settled claims. For instance, if you are in a car accident and suffer a broken leg, the adjuster types in the scenario and sees what the average settlement is for legs broken in car accidents in your region. “Colossus” then calculates a settlement based on that average, and this is what the insurance company offers the victim.
If the insurer settled a similar claim, it seems reasonable to settle every claim of that type for that amount- on the surface. When you dig deeper, it becomes apparent that this doesn’t work. In fact, Allstate has been penalized for using this software.