Bad Faith & Automated Claim Adjustment Software: Proving, Disputing Systematic Undervaluation of Damaged Vehicles

Generally speaking, if the cost to repair a damaged vehicle is greater than its "actual cash value" the insurer must replace the vehicle or pay the actual cost to purchase a comparable one. As more and increasingly advanced, sensitive, and integrated technologies have been incorporated into personal and commercial vehicles of all types, the cost of repairs has skyrocketed, so owners are more frequently being offered a cash value.

There continues to be controversy over what factors should be considered in determining cash value. But in recent years, insurers have begun using new types of data, new processes--namely algorithms--and applying new deductions, all of which policyholders contend are not only unsubstantiated, but designed and applied in bad faith to undervalue their claims.

Policyholders continue to challenge the validity of the data being used in algorithms and the reliability of the algorithms themselves. Requests about the software and algorithms often result in heated discovery disputes.

Listen as this experienced panel discusses proving or defending bad faith claims based on the use of algorithms or "insurtech" to establish totaled vehicle value.