Colossus: The Program Insurance Companies Use to Value Personal Injury Claims
Insurance companies use different tools to value personal injury claims. One tool that has steadily gained popularity and preference is a relatively new computer software program called Colossus. To make it harder for personal injury claimants and their attorneys to understand how their adjusters value claims, the insurance companies have made a valiant effort to keep the details of this program and its value claims a mystery.
The Story Behind Colossus
In the 1990 s, some insurance companies started using Colossus instead of individual judgment to evaluate injury claims. Colossus is a data driven software program that requires the insurance adjuster to first input certain key information about the claim before providing a value. This design makes the program an easy way for the adjuster to artificially lower the value of a personal injury claim.
In other words, by slightly modifying the “objective” information, such as the cost of medical treatment and the cost of property damage, the adjuster may significantly adjust the final outcome.
The Problems With Colossus
Colossus has its fair share of problems. One major problem is its inability to account for subjective data. This shortcoming makes it difficult or nearly impossible for the program to reflect certain variables that a jury would consider, such as pain and suffering, loss of consortium and the victim’s inability to perform certain activities that they could do prior to the accident.
Another big problem with Colossus is that the monetary value it generates becomes a locked figure. In many cases, the insurance adjusters are reluctant, or even discouraged by their insurance company, to budge from this base figure. This may result in a roadblock during settlement talks, which may ultimately result in the need for litigation.
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If you need an experienced New Jersey personal injury lawyer, please call Dan Matrafajlo at 908-248-4404 for a free consultation.