A recent report by the Consumer Federation of America shows that some insurance companies are using claims software that allows them to manipulate payments, thereby paying consumers less than they deserve after an accident.
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 than serious, 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 report indicates, the claims processing software may have more useful benefits than merely efficiency.The report concludes that the claims processing software has allowed many insurance companies to increase profits by lowballing consumers, and reducing the amount that is actually paid to consumers who file injury claims.