We have insurance for everything- our home, car, medical, etc…We believe that our insurance companies will act in good faith if something happens and we need help. How would you feel if you knew your insurance provider relied on a system to give you less than you deserve for your claims?
Recently, an article was published in The Post and Courier exposing Allstate Insurance Company and the computer program it utilizes to determine the amount of money for each insurance claim it receives. The computer program, named Colossus, was designed to analyze the costs of different claims according to their severity and apply it to similar claims in the future. By taking the guesswork out of claims adjusting, companies like Allstate were able to cut significant costs.
Cutting costs would seem to trickle down to the consumers giving them more cost effective policies; however, this was not what Allstate had in mind. The plan was to keep policy rates the same but adjust the system to give less money per claim. Colossus was being tweaked to give consumers up to 20% less than they deserved per claim so companies like Allstate could make bigger profits. They even divided South Carolina in two sections in order to focus on who could afford to take a lesser claim amount.
Even worse than reducing the amount paid to consumers was the way in which Allstate has treated its clients. When a client files an insurance claim, 90% do not hire an attorney and Allstate settles their case within 180 days, giving the lowest amount possible. For the other 10% who obtain an attorney, Allstate drags out cases and attempts to offer low amounts to people who might become tight on money and need a quick settlement.
Former employees are speaking out against Allstate and Colossus. They are making consumers aware of the system insurance companies are using and how they are purposefully giving lower amounts than consumers deserve. Currently 20% of the Top 30 US insurance companies are using Colossus today.
Have You Been Denied An Insurance Claim? Is Insurance Delaying Your Payment?
If you've been denied an insurance claim or the insurance company is delaying your payment, you should to speak with an insurance claim attorney as soon as possible. Contact us online or call our Charleston, South Carolina office directly at 843.488.2359 to schedule your consultation. We are also able to meet clients at our Conway, Myrtle Beach, Murrells Inlet, Mt. Pleasant, North Myrtle Beach or North Charleston office locations.