Q&A with Ray Farmer, South Carolina’s new insurance director [The Post and Courier, Charleston, S.C.]
By Tony Bartelme, The Post and Courier, Charleston, S.C. | |
McClatchy-Tribune Information Services |
Farmer, 66, spent the past 33 years as a lobbyist with the
Black, a former Liberty Life Insurance executive, gave no reason for his departure, leaving speculation that he had a falling out with Haley.
In an interview, Farmer described his previous work as a lobbyist, regulator and insurance adjuster. He talked about his plans to expand the agency's hours and improve customer service. Questions and answers were condensed and edited for clarity.
Q: The mission of the insurance department is to balance the needs of consumers with the needs of insurance companies to stay solvent and financially strong. As a lobbyist, you represented one side of that scale, the insurance companies. How would you answer critics who say you can't properly balance the needs of consumers?
A: It's pretty simple. I was a regulator, and I'm still a consumer. So I know exactly what a consumer is looking for and how to protect consumers. And I have a basic understanding of what it takes to keep a company interested in doing business in this state. ... I think I provide a unique perspective.
Q: Are you surprised that people might be critical (of your past experience as a lobbyist)?
A: No, I'm not surprised that someone who doesn't know my entire background would say that.
Q How did you get into the insurance business?
A: I went as an undergrad to the
There I learned about the basics of policies and how law applies to insurance, but I learned a lot more about human nature. As an adjuster, as soon as you met people, you knew they were under some level of stress. And if you were able to solve that problem and restore them back to the way they were, you had a good day.
I eventually started law school at night. I wanted to try do something else. (He described then how he joined the
Q: What did you do at the AIA?
A: I was a vice president. It's a trade association of property and casualty companies that write every line of property and casualty insurance in every state. I had responsibility over the Southeast. It was more of a government-affairs job, but as a service to our members we also did an annual report where we looked at every state and made comments on different areas, a snapshot that (companies) could use to decide whether they want to do business in a state and how much.
Q: So how did
A: It has always been a business-friendly state. In the mid-1990s, auto insurance lines wouldn't write in this state because of the residual market and the way the laws were. At that time, when a policyholder got a bill, the premium had a surcharge on it, so whether you were a good driver or not, you had to pay a percentage. In that case, the consumers spoke to their legislators, and the legislators responded to their constituents.
Q: Now the auto insurance side is seen as a success story, right?
A: It brought in more companies and they started competing among themselves. I think competition is the bottom line and the driver of any effort to control costs or provide more service to the policyholder.
Q: But home insurance rates are among the highest in the nation and especially on the coast. Are they too high?
A: We haven't had an outcry. Pick any kind of a product. As a consumer I'm going to say that I'm paying too much for a product. But the question is whether I'm getting value for what I'm paying, and I think the answer is yes.
Q: How did you end up getting this job?
A: It came out of the blue. I was well on the way to retirement, and I got a call from someone in the governor's office wanting to know if I had an interest. I never had given it one minute of thought. My wife and I talked about it, and I decided to pursue it. ... I'm not ready to retire.
Q: What are your goals?
A: I have two instructions from the governor, and they're pretty clear. One is customer service and the second is to grow the industry. (Farmer described how beginning
Q: How satisfied are you with customer service right now?
A: We're good, but with anything else, we can always do better. That's why we're going to expand the hours.
Q: How many people focus on consumer affairs at the agency now?
A: In the agency overall we have about 85 people, and pretty close to 10 in the consumer affairs section for the entire state. They are extremely busy. Last year they handled 60,000 contacts, inquiries and complaints.
Q: So that's about 220 complaints and calls a day. Insurance is very complex. Can you really expect good service from just 10 people?
A: I was talking to the supervisor this morning, and there was an instance last week where a lady had concerns about an annuity. It was two companies and involved about
Q: The department collects a vast amount of information that, if organized properly, could be a huge help to consumers, especially when they shop for insurance. But the department's website is pretty horrible and far behind other states.
A: I agree with you. I've looked at the website. I've got a lot of high priorities, and that's right up there. ... We will improve the website.
Q. Are you moving to
A. Yes I am. I'm at a good point in life. Our kids are grown and we're moving to
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