Mrs Macfarlane is a director at Reed Insurance Associates Ltd and has worked in general insurance for 19 years, previously for Insurance Corporation and before that at Royal & Sun Alliance.
She takes over from Tim Wiseman, who has completed his two-year term of office.
The institute has grown in Jersey to more than 220 members working in all areas of the industry, including household, marine and motor insurance, commercial, business and personal indemnity insurance.
The organisation, which this year celebrates its 40th anniversary in the Island, supports the educational needs of its members and organises three or four events a year, with speakers, and an annual dinner.
