Many, if not most, insurance companies are currently using a software program called Colossus. Colossus was designed to figure out what every case is worth. The developer realized that each adjuster would settle a claim for a different value, and we cannot have any human determining what a case is worth. So, in an effort to make every claim the same, Colossus was developed.
I am currently working on a Colossus article for consumers. As soon as it is complete, it will be posted here and on my website. But, let me share a few thoughts:
- Colossus does not work. It is that simple. (It is just my opinion, of course.)
- Colossus tries to homogenize every claim. In other words, it wants to make everyone with a broken leg the same. Unfortunately, everyone with a broken leg is not the same. If my leg was broken in an accident, it may limit my ability to do things like try a case or play soccer. However, if you break the leg of a ballerina, she may never be able to dance the same again.
- Garbage in, garbage out. Colossus comes up with its values based on what the insurance company inputs as values for cases. If they use garbage, only garbage values come out.
- Even insurance defense attorneys do not like Colossus – although they can never admit this publicly.
- And, last but not least: there is no formula that can calculate what an insurance claim is worth.
I hope these ideas get you interested in reading more about Colossus. And, as soon as it is done, you can read my article for more information.