Dealing with Your Insurer after an Accident
Mount Laurel Personal Injury Attorneys
In 2010, Allstate, one of the nation’s largest insurers, paid $10 million to settle a lawsuit brought against it by 41 states. The lawsuit claimed there were inconsistencies in how Allstate used a claims software called “Colossus” to calculate claim payments in injury accidents. While Allstate agreed to standardize the use of Colossus, the claims software is still used today – and not just by Allstate. Colossus is used by many large and smaller insurance companies in order to determine claims payouts in car accidents, truck accidents, motorcycle accidents, pedestrian knockdowns, and other kinds of accidents where personal injuries are involved.
What is Colossus?
Colossus is a proprietary software used by some of the nation’s largest insurers (MetLife, Farmers, and the Hartford) for estimating claims in personal injury cases. In many ways, Colossus acts like a database for providing a baseline range of costs associated with different kinds of injuries that are similar in kind. To begin, a claims agent selects certain variables and enters them into Colossus – variables like “broken femur, “concussion,” lost wages, and the kind of accident you were in. Using pre-determined algorithms, Colossus then estimates the amount you should be paid based on costs associated with injuries that are similar to yours in your situation.
However, since there are certain questions associated with each variable entry, what is entered determines how each variable interfaces with value drivers considered by Colossus. Value drivers include such things as the kind of injury involved, hospitalization, its duration, treatment, etc. After analyzing costs associated with these value drivers, Colossus provides an estimate for a claims payout.
Questioning the Estimates of Colossus in Injury Claim Payouts
In this way, the results provided by Colossus depend in part on the variables entered by a claims agent in the first place. If your broken shoulder results in chronic pain or the weakness in your hand, the estimate provided by Colossus may not take into account these other factors that are a part of your injury. Critics of Colossus have pointed to this aspect of Colossus, though its supporters claim the software has been improved. Additionally, the manner in which Colossus determines an average payout has come under fire since insurers can tweak results by selecting from the low end of what is considered an average payout.
Why It’s Important to Talk to a Personal Injury Attorney
Insurance companies don’t always tell you that they’ve used a computer software to estimate your claim. And, since the result provided by Colossus is dependent upon what a claims agent enters, the estimate is subject to error. Further, Colossus does not take into account pain and suffering, especially in cases where an injury results in chronic pain or a loss in strength or the use of an arm or a leg. For these reasons, it’s important to work with an experienced personal injury attorney who understands how to challenge the estimates provided by Colossus and ensure you receive the compensation you deserve.
If you’ve been injured in a car accident, truck wreck, motorcycle crash, your slip and fall, contact Mount Laurel personal injury attorneys at Taylor & Boguski today to discuss your case.