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They might use proprietary software to shortchange you on accident injury claims

Colossus bodily injury claims

If you're hurt in a car accident, chances are the information about this injury will be fed into a computer program called Colossus that generates settlement offers for bodily injury claims. And chances are better than average that the software is rigged to keep this offer low, warns the Consumer Federation of America (CFA).

New York state insurance regulators are watching these programs closely following a 2010 regulatory settlement which cost Allstate $10 million for "deficiencies" in managing and using Colossus, which is offered by CSC. New York’s examination concluded that Allstate failed to “tune” the software to reflect recently closed claims.

Others contend that the software is “tuned” to low-ball injury claims."Someone in the home office dials it back so that the best offer is really 20 percent below what it should be," says J. Robert Hunter, the CFA's director of insurance.

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