Conflict of interest?

LET ME GET THIS STRAIGHT, THE INSURANCE COMPANY, WHO HAS A FINANCIAL INTEREST IN THE LOSS PAYMENT, IS ALLOWED TO DECIDE HOW MUCH THEY HAVE TO PAY TO SATISFY THEIR CONTRACTUAL OBLIGATIONS FOR COVERED LOSSES. SO, ON THE ONE HAND, THEY HAVE A CONTRACTUAL OBLIGATION TO THEIR CLIENTS. ON THE OTHER, AN OBLIGATION TO MAXIMIZE PROFITS FOR THEIR SHAREHOLDERS. THIS ARRANGEMENT CANNOT WORK APART FROM GOOD FAITH & FAIR DEALING, CAN IT? JUST FOOD FOR THOUGHT