Public Citizen is reporting on a new report by the Consumer Federation of America that finds that "[o]ver 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." Go here for an executive summary of the report.
Computer assessment has allowed many providers to improve earnings by decreasing the amount compensated to consumers who submit bodily damage obligation claims, which includes not insured and under-insured driver statements.
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