selected portland personal injury blog
Allstate Fined $10M for Colossus Computer Claim Handing Process
Tue October 19, 2010, 4:44 pm
In October 2010 Allstate Insurance agreed to pay a $10M settlement for improper use of a claim software known as “Colossus”. Colossus is is used by insurers to help analyze auto accident bodily injury claims.
The Allstate settlement follows an 18 month investigation into Allstate’s settlement practices. The investigation revealed Allstate did not consistently adjust the software. Colossus software and other similar software have been used by Allstate and other insurers to help calculate settlement offers.
- Update oversight of so that it is “tuned” more consistently;
- Notify claimants when Colossus will be used to analyze claims;
- Increase Colossus auditing to ensure adherence to internal guidelines;
- Consolidate bodily injury claim practices into a single manual; and,
- Eliminate incentives for claims adjusters to base settlement value at or near the Colossus value
Insurance Attorney in the Portland Metro area contact Richard Rizk.
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