June 04, 2012 1 min read

Low Ball: An Insider’s Look at How Some Insurers Can Manipulate Computerized Systems to Broadly Underpay Injury Claims

R

Over the past ten to fifteen years, the payment of bodily injury claims covered by automobile or home and property insurance has evolved from a system based primarily upon the experience and knowledge of claims’ adjusters to a computer-based assessment that has the potential to be easily and broadly manipulated by insurers. This technology has enabled many insurers to increase profits by reducing the amount paid to consumers who file bodily injury liability claims, including uninsured and underinsured motorist claims. Insurers have also been able to hire less-experienced employees to handle these types of claims, since the computer programs conduct much of the decision-making.

Related Articles

R
June 11, 2026 / Blogs
Like a Bad Neighbor: State Farm’s Treatment of California Consumers After The Los Angeles Wildfires
R
June 09, 2026 / Reports
Blueprint for a Consumer-First Congress
R
April 29, 2026 / Testimony & Comments
Consumer Advocates Urge Louisiana Legislature to Ban Credit Scores and ZIP Codes in Auto Insurance
R
April 14, 2026 / Testimony & Comments
Consumer Federation of America Urges District of Columbia to Adopt Consumer Protections for Telematics Programs