N.J. Insurance Commissioner: A Regulator Hailed, Not Pilloried

 

Wednesday, Jun 24,2009, 11:29:34 AM   Click:

June 22 - The regulators of financial services companies do not get much respect these days, not because some of these companies they are supposed to closely monitor the economy has grown on a cliff.

But the state insurance regulatory Don Bryan is an exception. New Jersey, longtime director of insurance in the Department of Banking and Insurance has been hailed by industry and consumer advocates as well as an unsung hero who is preparing to retire at the end of months.

Bryan, 62, began with the department in 1982 as editor of the regulation, after the abandonment of a general practice law career in Mount Holly, and rose through the ranks to director of insurance 1999. Twice he was commissioner of the department, under governors Richard Codey and Donald DiFrancesco.

In all, Bryan served under seven governors and 10 commissioners in its 27-year career. He is credited by colleagues as the scenes of the orchestra reforms of automobile insurance in 2003, which has more competition for New Jersey and lowered the rates paid by consumers.

He also played leadership roles in Prudential Financial Inc s complex conversion in 2001 to a publicly traded company owned by shareholders of a company owned by mutual insurance companies. In addition, Bryan was also involved in the resolution, in the early 1990s, the insolvency of mutual benefit Life.

"We were not always agree, but we're sorry to see him go," said Phyllis Salowe-Kaye, executive director of consumer monitoring group New Jersey Citizen Action. "We lose someone a sense of history in the department, someone with a clear understanding of our point of view. "

"Don was the man," said Magdalena Padilla, president of the Insurance Council of New Jersey. "It is very impartial and fair, and always looking for what is good for the State of New Jersey. It is tough in this area."

Bernard Flynn, CEO of the New Jersey Manufacturers Insurance Co., said Bryan's steady leadership during the transition period between James DiFrancesco McGreevey administration and avoid a crisis in the market for automobile insurance in 2001. At that time, State Farm Indemnity Co. and American International Assurance Company of New Jersey have complained of overregulation and threatens to leave the state, and the number of uninsured drivers were all climbing could not find d ' insurance at any price.


"He kept the business under control," said Flynn. Except for his leadership, we had an absolute melting, "he said, and increasing insurance coverage and leaving more and more unattainable for many drivers.

In a recent interview in Trenton, Bryan said the adoption of reforms of the car was a highlight of his career, but he minimized his role.

"I was a participant," he says. "There were so many people involved. McGreevey personally committed. "

The problems, he says, are rooted in the well-intentioned consumer protection laws that capped rates and insurers required to return excess profits to policyholders. But between 1993 and 2003, more than two dozen insurers left the state and many other companies were losing money.

With the reforms, the state began to allow companies to retain more of their profits as a hedge against market declines and the service made it easier for insurers to increase rates and to withdraw from the market. The state began phasing out a law that requires insurers to serve all who apply, regardless of the risk.

"It's not deregulation, it is a relaxation of regulations," said Bryan.

It worked very well.

In 2002, there were 62 companies writing auto insurance in New Jersey, there are now 80. Consumer complaints auto insurance are down more than 50 percent from a few years ago. With increased competition, reduced premiums for most drivers, "said Bryan.

If there is a lesson, Bryan said, is that "regulators and legislators should direct channel or market forces rather than fight against them."

"I think we have a real sound regulatory regime in New Jersey at the moment," he said. Auto insurers are in good financial shape and "people are able to find coverage," he said.

Bryan, a resident of Burlington Township, who likes to play blackjack and collect pictures of sinking ships, said he did not intend to take up employment in the private sector. He said he travels with his wife Connie.

Bryan skipper Steven Goldman, the current commissioner, Bryan describes as "the epitome of what an officer can and should be" and "someone we're sorry to lose everything."