By requiring adjusters to rely on a computer program to help settle claims, insurance companies can eliminate adjuster guesswork. Based on this past settlement data, Colossus calculates a settlement range for similar claims. Insurers update Colossus annually with their new closed-claims data. The number of closed cases used to calculate the baseline differs by insurer, and because insurers update Colossus annually with their new closed-claims data, the baseline differs by insurer. The software itself makes a lot of demands on adjusters, requiring them to enter scores of information.
Any injury can have many peripherals attached to it.
A neck injury might cause a pinched nerve, which may or may not cause injury down to the finger tip, for example. And the more information an adjuster inputs, the more accurate Colossus' calculation becomes. Clarendon National Insurance Co. But Colossus' usefulness ends when serious injuries, such as quadriplegia, are in question. Further, Smith specifically notes that Colossus is not designed to handle claims involving dental injuries, scarring, head injuries, or psychological problems. Insurance companies insist that Colossus is just one of many tools that adjusters use to review the facts of a claim.