According to the Consumer Federation Of America, many large auto and homeowners insurance companies are using claims software and manipulating data to lower payments to victims of accidents. Injury evaluation software allows insurance companies to “low-ball” their customers by resetting parameters for payments and reclassifying injuries as less serious than a physician’s diagnosis. The claims software, including one called the Colossus package, has helped insurance companies increase profits by reducing payouts to customers.
Some experts estimate that insurance companies who have moved from evaluations by human claims adjusters to evaluations from computer software packages are saving 20%.
Insurance trade groups shrug off the criticism and say that claims software help companies be fair and consistent, that the software is merely an evaluation tool. On the other hand, consumer groups believe that insurance companies are not just trying to achieve consistency by investing millions of dollars in software, but are looking for ways to underpay injured victims. Since the claims software industry is largely unregulated, millions of individuals may be at risk of becoming victimized by their own insurance companies.
If you are injured in an accident, many claims insurance adjusters will use computer software to assess your claim, and then offer you whatever the computer suggests. However, claims software packages cannot properly assess, for example, the full impact an injury has on the normal, daily activities of an accident victim. Computers cannot assess an accident victims loss of enjoyment of life’s pleasures, pain and suffering or emotional distress. Computers compartmentalize and do not individualize the effect of an accident or trauma on an individual’s life.
The experienced attorneys at the Law Offices of Henry Hanflik can help you achieve the maximum result from your insurance company. If you or someone you love as been injured, call 810-720-4000 or toll-free at 888-905-4632.