Incentives For Adjusters to Deny Accident Claims

Brooks Schuelke

Contributor

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Under the Progressive Gainsharing program, Progressive Insurance provides bonuses to its employees based on how well the company performs. While this system may work in many industries, it provides an improper financial incentive for adjusters to deny or underpay car wreck and other claims.

I'm surprised Progressive has made this information public. This type of information, once disclosed, has proven very effective in bad faith and unfair claims handling cases against other insurance companies. It will be interesting to see if this program comes back to haunt Progressive.

For more information on this subject, please refer to the section on Car and Motorcycle Accidents.