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Allstate’s Colossus Insurance Claim Software Exposed By Insider for Low Balling

Local News , , , , , ,

I have been trying to tell everyone as loudly and as often as I can, Allstate Insurance Company is evil. Finally someone from within the Allsnake lair sought the warm sunlight through the confession of his sins against humanity while working as an employee of the snake.

Tony Bartelme, with The Post and Courier , reported “Storm of Money: Insider Tells How Some Insurance Companies Rig the System.” The insider was actually an Allstate employee and I’m sure Mr. Bartelme was wanting to use a broad stroke but let’s keep our eye on the head of this evil snake-Allstate.

Since it’s hard enough to encourage people to read, I will provide very simple, concise, excerpts from the article for those individuals in a rush so that they may better visualize those good hands  wrapped around your throat:

  • Colossusis a program that calculates how much a person might be paid for an injury claim;
  • Mark Romanowas the Allstate insider that came forward in the article and was considered Allstate’s Colossus “subject matter expert”;
  • Romano discovered that if he used Colossus the way Allstate did, he could save its new Encompass division millions of dollars by “turning the knobs” of the software — paying people less in claims than they would have otherwise gotten;
  • In South Carolina, for instance, CNA had divided the state into two territories — the “Liberal” area around Charlestonand the “Conservative” region elsewhere. Allstate renamed the territories “Charleston” and “Palmetto.” By using Allstate’s Colossus tuning methods instead of CNA’s, Romano could reduce payments in the Palmetto region by 18 percent. Savings were even greater in the Charleston area — a 57 percent reduction. That meant the Allstate version of Colossus would turn a $10,000 claim in Charleston into a $4,300 payment!;
  • People were being hurt by Colossus, and it was tearing him apart. He couldn’t turn the knobs anymore;

I know you are already tired of reading the obvious points that are being made about how evil Allstate Insurance Company has been over the past few decades. Don’t worry, it won’t effect your life until you are violently, rammed by someone covered by Allstate. Then when you suffer through your injuries for months and an Allstate insurance adjuster enters your information into a computer software program, manipulated to low ball you,-you might just remember why I was jumping up and down while pointing.

Imagine that, Romano even published a short report entitled, “Low Ball: An Insider’s Look at How Some Insurers Can Manipulate Computerized Systems to Broadly Underpay Injury Claims.”

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What Do You Know About Your Insurance Company?

Uncategorized , , , ,

If 100 people were polled about the the most important aspect of their insurance company, sadly 90 percent would say the cost, or price.  Yet, what good is paying insurance premiums if you are never going to be able to have peace of mind in the time you are in need of that insurance coverage? What? You never thought about actually having to use that insurance coverage?

Automobile insurance is mandated by most states, homeowners and property insurance is mandated by most mortgaged backed lien holders. When your life insurance policy goes into effect you won’t have to worry because you’re dead but wouldn’t it be comforting in your final days to know that your family will have no additional worries or hassles?

Then do your homework or just Google the insurance company you are thinking about engaging in coverage of your most valuable assets-you and your family! My friends ask me all the time what are the best insurance companies on my end to deal with. Of course I am jaded and cynical but there are those insurance companies that are fair and equitable. There are more that are inequitable and immoral but those are easy to find in an Internet search. Try Googling  “Allstate sucks” to see what comes up.

Chubb Insurance started a recent advertising campaign entitled,  “Who insures you doesn’t matter. Until it does.”  Chubb states the reason for this advertisement campaign:

A new corporate print advertising campaign reminds commercial and personal insurance purchasers and their agents and brokers that an insurer is only as good as its financial strength and its willingness to pay its claims in a fair, prompt and hassle-free manner.

 

Be in the 90% of people that talk about insurance costs, not in monetary value, but intrinsic value that go much further in your time of need.

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Nationwide Is Not On Your Side: Marketing Jingles are Flashy, Fictional, & Frustrating

Insurance , , , , ,

I had a client come in today with three young kids all under the age of 10 and all boys. They were tough to contain for her much less for my soon-to-be-married and “kidless” self. As I was informing my client’s mother, who owned the car, on how she had been swindled out of depreciation from State Farm with her property settlement one of the boys yelled out in a melodic manner:

 “Nationwide is on your side…”

I quickly turned towards him with the indignation of an elementary teacher, ruler in hand and asked who taught him such lies and slander? All in the room looked perplexed but none more than him. I quickly indicated to him that he had been lied to and should never repeat such blasphemy. As if on cue, all three boys chimed in: “Nationwide is on your side…”

At that point I realized what I was up against and what all Americans must face, mind numbing advertising that showers us night and day through all mediums of media.  Since the more money one entity or individual has the more exposure they will be able to give their flashy, fictional, and frustrating jingle or flat out lies……Yet at the same time I realized how effective such a childish and simplistically thought out plan can so easily massage and manipulate mainstream society.

Try not to let those insurance company jingles persuade you too much during this massive blitz of corporate marketing and advertising to get us consumers already in the mindset of spending to sell ourselves short of the true coverage and protection we need.  Be on the lookout for “Trey’s Top Three” where I pick out:

  1. the top three insurance companies that treat injured parties fairly;
  2. the top three things you need to add or include with your insurance; and
  3. the top three insurance horror stories from this year.

 

To help get your mind off that previous jingle, think about this:

The only hands that come from Allstate are wrapped around your throat.

Or maybe since I have renamed one of our local adjusters “Low Ball”:

Nationwide will chap your hide.

Don’t worry, last one:

Like a drunk driver, State Farm doesn’t care.

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Allstate Policy Holders and Victims Should Know They Are Not in Good Hands

Insurance , , ,

In legal circles, insurance circles, and amongst colleagues of both sides of the coin, plaintiffs and defendants,  there is an on going understanding of how awful Allstate Insurance claims adjusting and case evaluations are in comparison with reality and fairness.

I tell everyone that comes in my office how bad Allstate Insurance company is when it comes to providing a fair or reasonable offer on their personal injury claim. Again, truth is an absolute defense to any potential libel or slander claims so I want to put forth the TRUTH about Allstate:

  1. Insurance adjustersfor other insurance companies have resolved their portion of a claim with me and said, “Good luck”; “I wouldn’t want to deal with them”, “I don’t see how they haven’t been shut down by the state”, in reference to resolving the other portion of the claims with Allstate;
  2. I have been told by an Allstate insurance adjuster that regardless of what my client’s treating physicians said they were not paying the claim because she didn’t think my client was hurt. (She may have had a college degree but no medical training or certification);
  3. Allstate insurance representatives (in SC) have openly discussed with me how bad the company is run, how ridiculous the claims process is for them to get any authority, and how a machine (Colossus) tells what your claim is worth, not a person;
  4. Allstate adjusters have told my clients (prior to my representation), that they can’t possibly be hurt because of the collision they were in and need to settle the case because an attorney can’t help them;
  5. A year or two ago they use to have a system to try and move cases and it didnt matter what happen or what injuries the client received. It was based solely on medical bills. From $0-2,500 they would offer $500; $2,500-7,500 a $1,000 and so on but no more than $2,000 regardless of the amount;
  6. I have had numerous cases where they offered to settle for less than or equal to the medical bills and then I file suit and go through the litigation motions only to settle for a reasonable value and absolutely no facts, medical bills, or circumstances arose that would merit such an increase other than the fact, I filed suit.  (one such instance was so ridiculous that my client had a $15,000 offer and absolutely nothing changed but litigation was initiated–we settled for nearly half a million); and
  7. More than half a dozen defense attorneys I work with have made this specific statement when discussing Allstate cases, “Well Trey, you know this is Allstate………”  (No other insurance company is mentioned in that regard).

Why do I hate Allstate Insurance Company so much?

  • I do not believe they conduct their insurance practice in good faith;
  • Their commercials grate on every nerve I have when I know how poorly they treat their own insureds (what you are if you have Allstate Insurance), much less victims injured by their insureds; and
  • Consumers (you if you buy anything) are not educated on the front line about what they are buying and then they are being taken advantage of by their own insurance companies.

My solution:

  1. I have decided to fight Allstate regardless of the time, resources, and value on the claim;
  2. I educate every person I see, regardless if they become a client, on insurance and how bad Allstate conducts claims;
  3. I remain an active voice for those that have been deceived, manipulated, talked down to, and dejected by uninformed, uneducated, and ignorant Allstate representatives; and
  4. I blog when my blood pressure gets sky high because an Allstate adjuster just offered me $1,200 over medical bills of $12,800 and did not dispute that their insured was at fault or the injuries my client received. When I asked the reasoning for the offer and he gave some BS answer I made the comment that I don’t know why I even ask anymore and he said, and I quote verbatim, “Yeah, I don’t know either. I came from another claims office and it just seems like a waste of time.”

I am always open to hearing the other side of this issue or in lieu of no one having anything good to say about Allstate either, more war stories of how bad they are.

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Allstate Insurance Sucks

Automobile Insurance , , , , , ,

Dealing with Allstate on a routine basis for personal injury claims, I know how they frustrate me to no end.  However, I was interested to see the amount of Google entries for this title.

Are you really in good hands? Or should you consult an attorney anytime you see a name followed by the word “insurance”?