Have you been injured? you may have a case. GET A FREE CONSULTATION

Allstate confesses to using computer program to reduce settlements for auto accident victims in Michigan

March 24, 2011 by Steven M. Gursten

Insurance company admits use of ‘Colossus’ software to ‘low-ball’ auto accident settlements and stonewall car accident attorneys

Continuing with my “Allstate week” (I’ll stop writing about them when Allstate stops giving me so much to write about), this is part of a series I’ll be posting about the auto insurance company’s efforts to unfairly use a controversial computer program called Colossus. Colossus is designed to low-ball settlement awards for injured car accident victims in Michigan and around the country.

The software is used by many large auto insurance companies to “calculate” the settlement value of car accident injury claims. The system involves the insurance adjuster feeding data into the program, which then gives a settlement range, and the goal is to methodically drive down auto accident settlements.

Our car accident attorneys have watched innocent accident victims treated terribly by this giant insurer for almost 20 years. Hopefully, that’s now going to change. Allstate Insurance Company was recently held accountable for its unfair use of the “Colossus” computer program to punish accident victims, including using the computer program as part of its 3 Ds strategy: Delay, Deny, Defend.

Allstate promised insurance commissioners across the country — including Michigan’s Insurance Commissioner, Ken Ross — that it would change how it uses Colossus in its auto accident claims handling process.

In particular, Allstate promised the following:

o Allstate will notify Michigan auto accident victims and their lawyers when Colossus claims software is being used to adjust their personal injury claims.

o Allstate will no longer reward its insurance claims adjusters for settling car accident claims for the amounts specified by the Colossus computer program.

o Allstate will pay $10 million to train insurance commissioner personnel to monitor and evaluate Allstate’s continued use of Colossus.

 

[Community Guidelines]

2 Replies to “Allstate confesses to using computer program to reduce settlements for auto accident victims in Michigan”

  1. “Allstate will no longer reward its insurance claims adjusters for settling car accident claims for the amounts specified by the Colossus computer program.”
    – Wow. I’m assuming that when you say “reward” this in effect means compensate. What unbelievable stupidity on their part to tie adjuster compensation to claim settlement amounts in the first place. Thanks for reporting on this…good to know.

  2. im sure with the rapid affects on society with the hardships we suffer from by the economy ups and down im sure allstate will lose atleast 30% of their customers knowing they are at fault with accidents and have the nerves to offer you way less than you deserve and prolong its help to better assist you.I myself agree that allstate just like anyone else that do wrong to the people should suffer from the people financially or any other punishing way by doing wrong to the people,GOD’S people in the name of money.That allstate t.v site is a scheme to get the people money i feel just like credit card schemers and preachers that like to the people to get their hard earned money.Thanks for this chance to express my feelings.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Dirty Insurance Company Settlement Tactics
Dirty Insurance Company Settlement Tactics To Beware
March 31, 2020
Car Insurance Cancellation For Non-Payment: What You Need To Know
Car Insurance Cancellation For Non-Payment in Michigan: What You Need To Know
September 12, 2019
Insurance fraud by auto insurance companies is rampant
Insurance fraud committed by the auto insurance companies is rampant
December 10, 2018
During Covid-19, We’re Still Here For you, Working For You | Read More Here | If We Don’t Win, You Don’t Pay!
1 Shares
Share
Tweet
Share
Pin
Email