GAO report on insurance adjusting of Katrina claims: an inherent conflict of interest?

This GAO report on insurers' adjusting of Katrina claims, which Congress ordered way back when in response to allegations insurers committed massive fraud, is one of the things I wanted to get to in my post from last Friday but didn't have time to. Here's one of the penultimate conclusions of the study: Other claims concerns can arise on such properties [those where wind and water are both claimed to have acted as causal agents of loss] when the same insurer serves as both NFIP's write-your-own (WYO) insurer and the property-casualty (wind) insurer. In such cases, the same company is responsible for determining damages and losses to itself and to NFIP, creating an inherent conflict of interest. A couple things:One, this "inherent conflict of interest" certainly exi