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 serious when 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 Consumer Federation indicates, the new software may be used for more than just improving efficiency. The report says that the claims processing software has allowed many insurance companies to increase profits by providing unfairly low offers to consumers. Insurers were able to adjust Colossus to produce virtually any claims’ payment reduction they wanted, whether or not it was warranted. One executive said that Colossus could be “tuned” to achieve a particular level of savings, such as 15 percent, for all claims.
Auto accident victims in North Carolina should be especially concerned because so many insurers use the CSC Colossus system. The report estimates that more than 50% of the 20 largest auto and property insurers in the United States currently use the Colossus system. Even those that do not use Colossus use similar products that are sold by competitors.
There’s no sign that this will be fixed any time soon, meaning that millions of auto accident victims are likely to continue to be at risk of such manipulations. Insurance companies are doing what they can to maximize profits, even if that happens on the backs of accident victims across the country.
The best way to ensure that you are appropriately compensated for lost wages, property damage, pain and suffering, and medical bills is to hire an experienced Charlotte car accident lawyer. If you, or someone you know, have any questions regarding personal injury claims, please feel free to contact the experienced Charlotte, North Carolina personal injury lawyers at Arnold & Smith, PLLC for a free consultation. Call at 704-370-2828.
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