Georgia Injury Law Blog
A recent report by the Consumer Federation of America shows that some insurance companies are using claims software that allows them to manipulate payments, thereby paying consumers less than they deserve after an accident.
The report found that popular injury evaluation software used by many insurance companies comes with provisions that allow the insurers to ‘lowball’ consumers.These software programs include the CSC Colossus package which allows insurers to manipulate claims payments.The software can be used to reclassify injuries as less than serious, compared to the diagnosis of a doctor.
Over the past 15 years, many insurance companies in the United States have implemented such software to streamline claims processing procedures.However, as this report indicates, the claims processing software may have more useful benefits than merely efficiency.The report concludes that the claims processing software has allowed many insurance companies to increase profits by lowballing consumers, and reducing the amount that is actually paid to consumers who file injury claims.
The report was drafted by a former Colossus expert at Allstate Insurance, and a former Insurance Commissioner for Texas.However, the insurance industry has already criticized the study, claiming that the results are questionable.
Auto accident victims in Georgia should be especially concerned because so many of these insurers use the CSC Colossus system.It is estimated that more than 50% of the 20 largest auto and property insurers in the United States currently use the Colossus system.Further, others use similar products that are sold by competitors.
Atlanta auto accident attorneys do not expect that this problem will be solved any time soon because the market for claims software is a largely unregulated one.State insurance regulators do not get involved in the regulation of these claims software, and as a result, millions of auto accident victims are likely to continue to be at risk of such manipulations.
CSC marketed the Colossus System as being useful to help insurers maintain consistency in claims payments.However, according to the report, while consistency is one issue, there are certainly other motivations for insurance companies to use the program.
Underpaying injury claims is one way insurance companies can maximum profits.The number one lesson that any car accident victim in Georgia must take from this report is that the best way to ensure they are appropriately compensated for lost wages, property damage, pain and suffering, and medical bills is to hire an experienced Georgia car accident lawyer.