The U.S. Department of Homeland Security told Congress last week in an interim report it has uncovered “no evidence” that private homeowners carriers improperly shifted Hurricane Katrina wind-damage losses to the government's flood insurance program, but did not totally let insurers off the hook.
Indeed, the agency made clear that it wasn't prepared to completely exonerate private carriers, citing inadequate information on the claims-handling process and holding out the possibility that such cost-shifting might have occurred.
DHS officials said they don't believe a final report by the inspector general will be issued until early 2008, so the interim version will have to serve as the basis on which Congress acts on legislation reforming the National Flood Insurance Program.
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