Colossus Claims Software: How It Can Unfairly Deny Valid Claims and How Morgan & Morgan Can Help

When you're involved in a car accident, a slip-and-fall, or another incident that results in an injury, you rightfully expect your insurance company to evaluate your claim fairly and compensate you for your losses. 

However, the reality is that many insurance companies rely on claims processing software—not humans—to decide the value of your case. 

One of the most widely used programs in the industry is Colossus, a software developed by CSC (Computer Sciences Corporation) and used by many major insurance companies to assess injury claims. While designed to standardize claim evaluations, Colossus has come under fire for being prone to undervaluing and even unfairly denying valid claims.

At Morgan & Morgan, we understand how frustrating it can be to deal with a system that feels stacked against you. If you believe your claim has been unfairly denied or undervalued, our attorneys are here to help. 

Hiring one of our lawyers is easy, and you can get started in minutes with a free case evaluation.

What Is Colossus Claims Software?

Colossus is a computer program designed to help insurance companies evaluate personal injury claims. The software analyzes various data points to determine the value of a claim, including:

• The type and severity of injuries
• Medical treatment received
• Lost wages
• Pain and suffering (to some extent)

Insurance adjusters input the relevant information into Colossus, which then generates a recommended settlement range. The software aims to standardize claim valuations and reduce inconsistencies caused by human adjusters. However, this "standardization" often comes at the expense of fairness and accuracy.

How Does Colossus Work?

Colossus uses a rule-based system that incorporates algorithms to analyze the information provided by the adjuster. Here’s a basic overview of how it works:

• Input Data: Adjusters enter information about the accident, injuries, and medical records into the system.
• Injury Codes: Colossus assigns specific codes to injuries and medical treatments.
• Severity Scores: The software calculates a severity score for each injury based on predefined parameters.
• Settlement Range: Using its algorithms, Colossus determines a settlement range, often on the lower end of the spectrum.
• Adjuster Review: The adjuster uses the Colossus recommendation to negotiate or finalize the claim.

While this process may seem straightforward, it’s far from foolproof. Colossus’ reliance on rigid coding and algorithms can lead to significant issues, particularly when dealing with the nuances of personal injury claims.

Colossus Can Have Colossal Problems

This automated software can be prone to error, misjudged evaluations, and other problems.

Undervaluing Pain and Suffering

Colossus struggles to quantify non-economic damages like pain and suffering, which are inherently subjective. The software relies on preset formulas that may not accurately capture the emotional and psychological toll of an injury. For instance, a traumatic brain injury might be coded similarly to a less severe head injury, resulting in an undervalued claim.

Overreliance on Medical Records

The software heavily depends on the information inputted by adjusters, which often comes from medical records. If your doctor’s notes lack specific language or detail, Colossus may fail to assign the correct severity score to your injuries. For example, if your medical record doesn’t explicitly mention ongoing pain or limitations, Colossus might assume your injuries are less severe than they actually are.

Bias Toward Insurers

Colossus was designed with the insurance industry’s interests in mind, not the claimant’s. The program’s algorithms tend to favor lower settlement offers, which saves insurers money but leaves injured claimants without the compensation they deserve.

No Room for Nuance

Every personal injury case is unique, but Colossus treats claims as data points. The software doesn’t account for individual circumstances, such as the impact of an injury on your daily life, your specific career, or your long-term prognosis.

Manipulation by Adjusters

Insurance adjusters can influence Colossus’ calculations by inputting incomplete or misleading information. For instance, they might exclude certain treatments or downplay the severity of your injuries, leading to an artificially low settlement offer.

Real-Life Consequences of Colossus

The issues with Colossus are not just theoretical; they have real-world implications for people seeking fair compensation. Here are some examples:

• Denied Claims: If Colossus deems your injuries insufficiently severe, your claim might be denied altogether.
• Lowball Offers: Many claimants receive settlement offers that barely cover their medical expenses, let alone lost wages or pain and suffering.
• Prolonged Disputes: Disagreements over Colossus-generated valuations can delay settlements, forcing claimants into lengthy negotiations or litigation.

How Morgan & Morgan Can Help

At Morgan & Morgan, we know how to navigate the complexities of Colossus and other claims evaluation software. Our experienced attorneys use a multi-pronged approach to ensure our clients receive the compensation they deserve.

Challenging Lowball Offers

If your claim has been undervalued, our attorneys will scrutinize the Colossus evaluation and identify errors or omissions. We’ll gather additional evidence, such as detailed medical reports, expert testimony, and personal accounts, to challenge the insurer’s settlement offer.

Negotiating Aggressively

Insurance companies often rely on Colossus to set the stage for negotiations. Our attorneys understand the software’s limitations and use that knowledge to push back against unfair offers. We’ll leverage our experience and resources to fight for a fair settlement.

Filing Lawsuits When Necessary

If negotiations fail, we’re prepared to take your case to court. Our trial attorneys have a proven track record of success, and we’re not afraid to stand up to powerful insurance companies on your behalf.

Educating Clients

Understanding how Colossus works can empower you to advocate for yourself. We’ll explain the claims process in detail, so you know what to expect and how to protect your rights.

Maximizing Compensation

Morgan & Morgan’s attorneys go beyond the basics to ensure you receive full and fair compensation. This includes not just medical expenses and lost wages but also pain and suffering, emotional distress, and any other damages you’re entitled to.

Why Choose Morgan & Morgan?

An experienced attorney can help your insurance claim get approved—but why should you trust the attorneys at Morgan & Morgan? Here’s why.

Experience With Insurance Claims

With decades of experience handling personal injury cases, we’ve seen firsthand how insurance companies use Colossus to their advantage. Our attorneys know how to counter these tactics and secure favorable outcomes for our clients.

Resources to Fight Back

Morgan & Morgan is the nation’s largest personal injury law firm, with the resources and expertise to take on even the biggest insurance companies. From expert witnesses to cutting-edge technology, we have everything needed to build a strong case.

The Fee Is Free®

We believe everyone deserves access to justice, regardless of their financial situation. That’s why we operate on a contingency fee basis—you don’t pay us a dime unless we win your case.

Client-Centered Approach

At Morgan & Morgan, we treat every client like family. Your case matters to us, and we’ll work tirelessly to ensure you get the justice you deserve.

Contact Morgan & Morgan Today

Insurance companies can often prioritize profits over people, and tools like Colossus are designed to serve their bottom line. However, you don’t have to accept an unfair settlement. 

With Morgan & Morgan by your side, you can fight back against biased claims evaluation practices and secure the compensation you deserve.

If you believe Colossus has unfairly denied or undervalued your claim, don’t wait. Contact Morgan & Morgan today for a free case evaluation. With our experience, resources, and commitment to justice, we’ll stand up for your rights and help you achieve the best possible outcome.

Frequently Asked Questions

What can I do if my claim has been affected by Colossus?

If you suspect that Colossus has unfairly impacted your claim, it’s important to act quickly. Here’s what you can do:

• Gather Evidence: Collect all relevant documents, including medical records, accident reports, and correspondence with the insurance company.
• Document Your Experience: Keep a journal of your injuries, treatments, and the impact on your daily life.
• Consult an Attorney: Contact Morgan & Morgan for a free case evaluation. Our attorneys will review your claim and advise you on the best course of action.

Who uses Colossus?

The following insurance companies are known to use the Colossus claims software:

• Aetna
• 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.
• CNA
• 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
• USAA
• Utica
• Westfield Insurance
• Zurich

Does Progressive use Colossus?

Some insurance providers, such as Progressive or Liberty Mutual, have not been confirmed to use Colossus, but they are known to use a similar software known as Claims Outcome Advisor (COA).

Have there been Colossus lawsuits?

Consumer advocates have struck back at the big insurance companies using Colossus, including Allstate. 

Following an investigation by 47 states, Allstate entered into an agreement with the National Association of Insurance Commissioners, wherein the insurer agreed to pay $10 million toward a fund designed to monitor computerized claims handling practices, agreed not to pay incentives to claims adjusters who settle injury claims within Colossus’ acceptable range, and agreed to tell accident victims it uses Colossus with the following disclosure:

“One of the tools that our claim personnel may use in evaluating the claim is a computer program known as Colossus, licensed by Computer Sciences Corporation. Colossus uses a broad range of information about your injury, treatment, and prognosis to determine the severity of your injury. Based on this information, Colossus makes a recommendation as to the value of your injury. The Colossus recommendation is only one factor among many that our adjusters consider in reaching a decision as to the overall evaluation of the claim. It is their goal to reach that decision promptly, fairly, and based on an appropriate investigation of the facts and circumstances of your client’s claim.”

What can I do if my claim is denied?

Find out if a computer program was used to evaluate your claim. 

If you were injured in an accident and filed a claim, be aware that Colossus insurance software or some other computerized system may have been used to calculate a significant part of the settlement offer you receive from the insurance company. 

You have a right to ask your insurer if Colossus or any computer system has been used to calculate your settlement offer. Allstate is required under the NAIC agreement to provide you with this information. Other insurance companies, however, are not.

Demand to see the range of results the computer generated.

If any insurer, including Allstate, refuses to show you the range, you can file a complaint with your state insurance department.

 If the insurer does not agree to settle at the high end of the range, contact Morgan & Morgan.

Morgan & Morgan is the country’s largest personal injury law firm, and with a nationwide network of over 1,000 lawyers, Morgan & Morgan has an office near you. With over 35 years of experience, our law firm has recovered over $23 billion for our clients.

At Morgan & Morgan, we take every injury claim seriously, and when insurance companies act in bad faith, we are prepared to fight for justice—no matter how big an opponent there is.

Contact us today for a free, no-obligation case evaluation to learn more. We can help level the playing field and can help fight to ensure you are treated fairly throughout the claims process.