This article was published on June 4, 2012, and given to me by a fellow trial lawyer.  This is a longer read, but it explains how insurance companies have shifted claims handling over the last two decades from human adjusters to a primarily software based claims “analysis” model.

As you might expect, the software is only as good as the human giving it data.  And the insurance companies give incentives to the adjusters to omit or mischaracterize information.  That way, when the program spits out its low number, the adjuster can say, “Don’t blame me, that’s what the computer says.”  In other words, a little plausible deniability.  It’s amazing how American industry has shifted away from critical thinking in place of an easier, “streamlined” model such as these computer programs.

Read this article if you’re interested in wondering how claims are evaluated now, to the extent that they are.  This goes for personal injury, property damage, and other areas where there has been a loss claimed against an insurance company.

Consumer Federation- “Low Ball”