While outlying clouds, stirred by tropical storm Nicole moved above Orlando, the Chartered Property Casualty Underwriters Society ushered in a new president—Warren L. Farrar, CPCU, CLU, ChFC—during its recent annual meeting.

Warren, assistant vice-president of claims for State Farm Insurance, has served the Society in several key ways since he received his designation in 1988. Most notable was his term as Interest Group Governor and his involvement on the Society’s Governance Overview Board Working Group.

The Governance Working Group spearheaded the formal recommendation to substantially reduce the size of the Society’s governing board and create a separate group of governors who maintain, solely, local chapter oversight and liaison duties.

During his inaugural speech, Warren hammered home some realities about the current insurance market and its challenges. At one point he shared that:

“These are volatile times for the industry and the economy. These are precisely the times when employers most need to continue to invest in their employees. This is how they make certain that their employees are prepared to offer solutions.”

Warren made himself available to discuss several issues about his upcoming term as the CPCU Society’s president.

RN: Can you share about your history with the Society and your path to its presidency?

Farrar: Due to my work, I moved frequently; so I did not involve myself on the local chapter level. I believed that relocations would result in a disservice to a chapter. I turned down several offers to become a chapter leader. However, in 1992, I was offered an opportunity to serve with the Society’s Loss Control Interest Section (now called Interest Groups). I then became heavily involved with Interest Groups since those responsibilities accommodated my job movement.

RN: How well are Interest Groups meeting the needs of membership?

Farrar: The Interest Groups contribute a huge amount of technical information to our annual meetings. As successful as they have been, we face the challenge of continuing to leverage our expertise of our Interest Groups in new and different ways.

Our new Interest Group governance structure will help them develop a greater ability to demonstrate their importance to the Society and the insurance industry.

We may decide to expand the number of Interest Groups as the insurance marketplace changes. Interest Groups should reflect current needs.

RN: What progress is being made in establishing the separate level of Society Governors?

Farrar: So far a great deal of progress has been made. However, we are still in the midst of transition and I’m confident that it will make us more effective, particularly as a board of directors. It will be easier to get things done with a smaller group.

The reconfigured board and separate level of chapter governors will benefit our members. It will allow the governors to be more responsive to the chapters assigned to them. This change was made with the involvement of a large group of CPCUs. The changes we’re implementing reflect their good work.

Change is never easy, but the people I’ve talked to who are operating in the new roles have been very positive.

RN: How is the transition to a smaller board of directors working so far?

Farrar: In a volatile environment, we have to be more strategic than we have been. This market demands that we reach solutions quickly. So far, the smaller board is giving us the ability to be much more flexible and responsive!

RN: Can you discuss the opportunities being created by the Society staff via its Webinars?

Farrar: They’ve been terrific! The many Webinars created by our staff have allowed us to offer a greater volume of technical information to a much wider audience…and to do so in a flexible manner…it’s been a big success.

RN: How would you describe the job the Society has done to influence the image of the insurance industry?

Farrar: We have an important role to play with the insurance industry, and how we handle that role is definitely part of the Society’s strategy.

We can influence the level of talent that can be attracted to our industry. Our student programs, particularly the Loman Foundation’s efforts to extol the benefits of insur­ance careers, are a huge step in that direction.

RN: What do you most look forward to accomplishing during your term?

Farrar: My greatest priority is to help create strategy that responds to marketplace issues. It’s going to ask a lot of our volunteers, especially when they are strapped for time.

I’m looking forward to the fun of meeting many people across the country and to spreading the message of the role the Society has to play.

At the end of my term, I hope the Society is in a position to be successful on an ongoing basis and that the industry recognizes our importance.

RN: What Society objectives do you believe need increased emphasis, if any?

Farrar: Our objectives have to permit us to be able to recognize what’s going on in the industry, especially when the market is uncertain. We have the people who are quite capable of dealing with change. It’s important that we increase our efforts to demonstrate this important ability.

RN: What was the importance of the Society’s initial decision to use social media?

Farrar: It’s critical! We must attract younger people to our organization and to the insurance industry. In order to do so, we have to embrace the ability to communicate with them in the way to which they’re accustomed. We have to bring in their talent and then take advantage of the power that they can bring to industry.

There is a risk in the use of social media, but we have to minimize that risk and use those new communication channels.