Insurance Companies That Use Colossus for Settlement Evaluation

Colossus” refers to a computer software program used by some insurance companies. Colossus (now DXC Technology) is a claims management system that helps insurance adjusters assess the value of personal injury claims. It is primarily used in the insurance industry, particularly for claims related to auto accidents and bodily injuries.

Colossus uses a set of algorithms and criteria to analyze various factors related to a personal injury claim. These factors can include the nature and extent of the injuries, medical expenses, loss of income, pain and suffering, and other relevant details. The software then generates a recommended settlement amount based on the input data and predefined valuation rules.

Critics (us) argue that Colossus insurance software leads to lower-than-reasonable settlement offers. Proponents argue that it provides consistency and objectivity in determining settlement amounts.

• How Colossus evaluates claims for settlement

How Colossus Is Used Practically

Each of these insurance companies uses Colossus differently in valuing personal injury cases. Insurance adjustors from these companies that use Colossus have contended to our lawyers that Colossus software is just one piece in the evaluation process. We believe that the weight given to the value determined by Colossus varies from company to company. Allstate appears to be extremely wedded to the Colossus output as opposed to Travelers, who appear to give the Colossus results less weight in determining the settlement value of the case. The weight given to Colossus also varies from adjustor to adjustor. More seasoned and respected adjustors within the insurance company believe they have the latitude to factor in those things that

In contrast, new adjusters (usually given more minor cases) have less discretion to deviate from the settlement value determined by Colossus. Colossus also differs in the baseline set by the insurance company. Essentially, they select many settled cases in a particular region to determine the appropriate settlement range. For example, Allstate might pick 100 herniated disc cases in a particular area and enter those cases’ settlement and/or trial values into Colossus. Based on these figures, Colossus calculates a settlement range for herniated disc cases that are ostensibly similarly situated. Accordingly, the baseline for each insurer will vary based on their prior valuation histories. If Allstate got inordinately low values in a particular area or if Allstate “inadvertently” failed to disclose the higher verdicts, that would be reflected in the Colossus values.

How Different Insurance Companies Use Colossus/DXC Technology

While many insurers license Colossus insurance software, how they use it can differ drastically. Some rely on it heavily and refuse to negotiate outside its parameters. Others treat it as just a tool among many. Here is how some major insurers are reported to use the Colossus calculator:

Allstate

• Allstate is most associated with Colossus to calculate settlement amounts

• Heavy reliance on Colossus as the primary settlement tool

• Adjusters have little discretion to deviate

• Often train adjusters to interpret records in ways that feed favorable injury codes into the system

• Known to “blacklist” attorneys unlikely to file suit

Farmers Insurance

• Uses Colossus heavily in the early phases

• But more flexible when litigation begins

• Some adjusters will override it if presented with compelling documentation or a narrative impact

Travelers

• Uses Colossus but allows high-level adjusters more autonomy

• Somewhat more negotiation-friendly

• Better responsiveness to subjective claims with documentation

USAA

• Mid-level reliance; very data-driven

• Penalizes claimants for gaps in treatment more aggressively through Colossus input

The Hartford

• Reported to reduce Colossus-calculated offers by a preset percentage if a claimant is not represented

• Known to manipulate baseline settlements used to “train” Colossus

This information is based on experience and patterns observed in negotiations and litigation. Usage can vary by region, adjuster, and supervisor override policies.

More Information on Colossus, Allstate, and Case Value

• A Complete Overview of Colossus (breaking down this computer program)
• Colossus Settlement (first-party claims involving the misuse of Colossus)
• Overview of Allstate (details of Allstate’s insurance claims management)
• Bringing an Accident Case in Maryland: An Overview

More Information on Personal Injury Claims

• How Should I Value My Personal Injury Case?
• Lawsuit Loans (an overview and how a lawyer should deal with clients seeking a cash advance)
• Sample Demand Letter (example of a demand letter in an accident case)