If confirmed by the Senate, Richardson, R-Beaufort, will have to deal with a department that is struggling with several issues:

• Coastal residents, who make up about 25 percent of the state's population, are angered by skyrocketing catastrophic insurance premiums.

• A growing list of insurance carriers are dropping customers and abandoning the state.

• Staff morale is very low.

• Legislators are calling for investigations into the department, including sworn testimony from officials, on suspicion the agency might have cut deals or committed other wrongdoing.

• A new hurricane season begins in about four months.

Insurance director Eleanor Kitzman announced her resignation Tuesday but said she would stay on during the transition.

Richardson, who serves on the Senate Banking and Insurance Committee, said with humor that he accepted Gov. Mark Sanford's pitch to take the job, which he said started about a month ago, knowing the difficulty of the task.

"I had several people call me this morning and ask, 'Why would you walk in front of this train?'" Richardson said. "We're going to solve this, and we're going to do this in a (market-oriented) fashion."

He said part of the solution to the insurance dilemma will include using tax incentives to get 50 to 100 companies to commit to the state; creating tax incentives for insurance companies that move their headquarters to South Carolina; and creating an insurance profile that fits the state, as opposed to national models used by other states.

Richardson, who was in the insurance business for about 20 years and is a successful real estate investor, said it should take 12 to 18 months to fix troubles within the agency.

Sen. Ray Cleary, who has taken the floor to pose several remedies for the state's "wind pool" insurance policy problems, expressed confidence in Richardson.

"He's no back-seat senator," said Cleary, R-Georgetown. "He understands the wind pool line needs to move. He understands that catastrophic state modeling is needed. He understands the wheels of government, and he's a Hilton Head resident."