Colossus” refers to a computer software program used by some insurance companies. Colossus 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 (that’s us) argue that Colossus leads to lower than reasonable settlement offers. Proponents argue that it provides consistency and objectivity in determining settlement amounts.
Insurance Companies That Use Colossus
Based Software to Evaluate Claims?
We are aware of the following insurance companies that are licensed to use Colossus to evaluate personal injury claims:
- Allstate Insurance
- American Family Mutual Insurance
- American National Property and Casualty
- American Family Group of Madison
- Arrow Claims Management
- AXA Insurance
- Bishopgate Insurance
- California State Automobile Assn.
- Encompass (owned by Allstate)
- Esurance (owned by Allstate)
- Explorer Insurance Company
- Erie Insurance
- Farmers Insurance
- Federated Insurance Group
- General Casualty Insurance Company
- Great American Insurance Company
- Grange Mutual Casualty
- Keystone Insurance
- Liability Line Insurance
- Metropolitan Group
- Motorist Mutual
- Ohio Casualty
- The Hartford
- MetLife Home and Auto
- State Auto
- St. Paul Insurance
- Travelers Property Casualty Insurance
- Westfield Insurance
How Colossus Is Used Practically
Each of these insurance companies uses the Colossus differently in valuing personal injury cases. Insurance adjustors from these companies that use Colossus have contended to our lawyers that Colossus is just one factor 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 (who are usually given smaller 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 the settlement and/or trial values of those cases 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.
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 Accident Case in Maryland: an overview