McKinsey designed a system—the Claims Core Process Redesign—that pushed adjusters to make quick, lowball offers rather than allow them to come up with settlements that they considered fair. Adjusters, now tethered to a computerized claims system called Colossus, were reduced to little more than call-center workers reading prepared scripts. Pop-outs became rare. For homeowners’ claims, it was another computer program—Xactimate. But the idea was the same. Push claimants to accept less than the covered amount. Allstate says this characterization is “false and misleading” and that it overhauled
...more
