Colossus Saves Allstate Billions in Handling Automobile Accident Claims: So What's $10 Million?
Allstate, the evil empire, is the worst insurance company anyone could have for automobile insurance coverage. They are even worse when you are injured or harmed by one of their negligent insureds traveling on the roadways in South Carolina. They have spent good money on formulating software that helps minimize the human interaction in claims adjusting and at the same time limit the monetary payout.
In comes New York State Insurance Superintendent James Wrynn, leading four other states into an investigation into Allstate's Colossus software. As reported by the New York State Insurance Department:
“Allstate has agreed to implement procedures to ensure transparency and fairness for consumers who have bodily injury claims,” Wrynn said. “The new processes ensure that claims will be handled consistently in different regions of the country, and consumers will have the right to get the information they need in order to understand how Allstate evaluates their claims and make sure they are fairly treated.”
More importantly Allstate has to modify their claims handling process in the following manner:
- Providing notice to claimants that the Colossus software program may be used in the adjustment of their bodily injury claims;
- Enhancing its management oversight of Colossus to ensure that it adheres to established criteria and a uniform methodology in selecting claims to be used to “tune” or modify the software to reflect recently settled claims;
- Strengthening its internal auditing of Colossus and bodily injury claims handling to ensure adherence to written guidelines and procedures;
- Consolidating its bodily injury claims handling practices into a single claims handling manual; and
- Not establishing a policy or rule requiring claims adjusters to settle bodily injury claims solely on the value recommended by Colossus and not providing incentives for claims adjusters to settle claims at or near the value recommended by Colossus.
You can see the full article entitled:
Allstate Agrees to $10 Million Regulatory Settlement Over Bodily Injury Claims Handling Processes
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