A computer program designed to assist insurance companies in evaluating personal injury claims, this tool analyzes a multitude of factors to arrive at a suggested settlement range. These factors may include medical bills, lost wages, and subjective elements such as pain and suffering. The program processes the information entered by the claims adjuster and generates a valuation intended to expedite the negotiation process.
The adoption of such systems stems from a desire for consistency and efficiency in claims handling. Proponents argue that it provides a standardized approach, reducing variability in settlement offers across similar cases. Historically, insurance companies faced criticism regarding inconsistent and seemingly arbitrary settlement amounts. The implementation of this technology was presented as a method to address these concerns and streamline operations, though critics suggest it may prioritize cost containment over fair compensation.
