Your insurance company treats you like a statistic. I wish this was a surprise.

You may not know or realize this but your insurance company and the insurance company of anyone that is involved in an accident with you is completely controlled by a software program called Colossus. The agent you speak with on the phone has zero latitude to offer you anything outside the lows and highs of the software recommendation. The software does not consider anything about you as a person, rather you are comprised of several hundred data points.

When you are in an accident, everything about this potential claim is captured by Colossus and communicated to the agent. This process is specifically designed to short change you and increase the insurance companies profit. If you thought you could negotiate a settlement yourself, and while the insurance agent may lead you to believe you are capable, the reality is that the demands from a sophisticated party on your behalf in large part has to force both Colossus and the insurance mouth piece into a situation to offer you greater value.

On December 9, 2010, the Consumer Federation of America released a “Consumer Alert” warning Americans who have been injured in auto accidents about Colossus. The CFA offered the following:

  1. Find out if a computer algorithm or program was used to evaluate your claim.
  2. Demand to see the range of results the computer generated.
  3. Do not accept any offer less than the “high” end of the range and consider making a counter offer that is about the high offer.
  4. If the insurance company does not agree to settle at the high end of the range, file a complaint with your insurance commissioner and seek legal help with your claim.

Allstate was named the worst company to low ball settlements. McKinsey Consulting in 1996 introduced Colossus which is at the very center of Allstate’s Claims Core Process Review (CCPR) which Allstate and Colossus’s manufacturer touted as “able to reduce bodily injury claims up to 20 percent“.

Allstate operates under many subsidiaries which you should be aware of. The following is a partial list of these companies which you may be a customer of or opposing in a claim.

Allstate Business Aliases
ALFS, Inc.
ALIC Reinsurance Company
Allstate Assignment Company
Allstate Assurance Company
Allstate Bank
Allstate County Mutual Insurance Company
Allstate Distributors, L.L.C.
Allstate Financial Advisors, LLC
Allstate Financial Corporation
Allstate Financial Services, LLC
Allstate Financial, LLC
Allstate Fire and Casualty Insurance Company
Allstate Floridian Indemnity Company
Allstate Floridian Insurance Company
Allstate Indemnity Company
Allstate Insurance Company
Allstate Insurance Company of Canada
Allstate International Insurance Holdings, Inc.
Allstate Investment Management Company
Allstate Investments, LLC
Allstate Life Insurance Company
Allstate Life Insurance Company of Canada
Allstate Life Insurance Company of New York
Allstate Motor Club, Inc.
Allstate New Jersey Insurance Company
Allstate New Jersey Property and Casualty Insurance Company
Allstate Non-Insurance Holdings, Inc.
Allstate North American Insurance Company
Allstate Property and Casualty Insurance Company
Allstate Reinsurance Ltd.
Allstate Settlement Corporation
Allstate Texas Lloyd’s
Allstate Texas Lloyd’s, Inc.
American Heritage Life Insurance Company
American Heritage Life Investment Corporation
American Heritage Service Company
Charter National Life Insurance Company
Concord Heritage Life Insurance Company, Inc.
Deerbrook General Agency, Inc.
Deerbrook Insurance Company
E.R.J. Insurance Group, Inc.
Encompass Floridian Indemnity Company
Encompass Floridian Insurance Company
Encompass Home and Auto Insurance Company
Encompass Indemnity Company
Encompass Independent Insurance Company
Encompass Insurance Company
Encompass Insurance Company of America
Encompass Insurance Company of Massachusetts
Encompass Insurance Company of New Jersey
Encompass Property and Casualty Company
Encompass Property and Casualty Insurance Company of New Jersey
First Colonial Insurance Company
Intramerica Life Insurance Company
Ivantage Select Agency, Inc.
Kennett Capital, Inc.
Keystone State Life Insurance Company
Lincoln Benefit Life Company
Northbrook Holdings, LLC
Northbrook Indemnity Company
Northbrook Services, Inc.
Northbrook Technology of Northern Ireland, Limited
Pafco Insurance Company
Pembridge America, Inc.
Pembridge Insurance Company
Roadway Protection Auto Club, Inc.
Sterling Collision Centers, Inc.
Surety Life Insurance Company
Tech-Cor, LLC

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