--- title: "Innovations and Challenges in Insurance: HAI Group CEO's Views on AI, Weather, and Workforce" description: HAI Group President and CEO Ed Malaspina sat down with Lori Chordas from AM Best for an AM Best TV segment on issues impacting the insurance industry. image: https://blog.haigroup.com/hubfs/Imported_Blog_Media/VCIA%20Blog.jpg --- [Skip to content](https://blog.haigroup.com/innovations-and-challenges-in-insurance-hai-group-ceos-views-on-ai-weather-and-workforce#main-content) [![hai-logo-KO-256px](https://blog.haigroup.com/hs-fs/hubfs/hai-logo-KO-256px.png?width=256&height=57&name=hai-logo-KO-256px.png "hai-logo-KO-256px")](https://www.haigroup.com/) - SEARCH - [Cybersecurity](https://blog.haigroup.com/tag/cybersecurity), - [Insurance](https://blog.haigroup.com/tag/insurance), - [Risk Management](https://blog.haigroup.com/tag/risk-management) # Innovations and Challenges in Insurance: HAI Group CEO's Views on AI, Weather, and Workforce ![](https://blog.haigroup.com/hubfs/Imported_Blog_Media/VCIA%20Blog.jpg) - August 10, 2023 ![Andrew Ragali | Assistant Director, Marketing and Communications | HAI Group](https://blog.haigroup.com/hubfs/Capture-2.jpg) [Andrew Ragali | Assistant Director, Marketing and Communications | HAI Group](https://blog.haigroup.com/author/andrew-ragali) [\< Back to Resource Center](https://blog.haigroup.com) HAI Group President and CEO Ed Malaspina recently [sat down with Lori Chordas](https://www.linkedin.com/feed/hashtag/?keywords=ai&highlightedUpdateUrns=urn%3Ali%3Aactivity%3A7094674606879334402) from AM Best for an AM Best TV segment on maintaining a skilled workforce in today's work environment, the effects of artificial intelligence on the insurance industry, emerging cybersecurity threats, and the impact severe weather has on insurance carriers.   The interview took place at the 2023 Vermont Captive Insurance Association Annual Conference (August 7-10) in Burlington, Vermont, *Below is a brief recap of the interview.  [Click here](https://www.ambest.com/video/video.aspx?s=1&rc=mapaspina823&_gl=1*65m6xl*_ga*MTQxNDM1MjExMS4xNjkxNTg0NTU0*_ga_VNWYD5N5NL*MTY5MTY2NjcyMi4yLjEuMTY5MTY2NzA0NC4wLjAuMA..&_ga=2.205567443.1197316419.1691584554-1414352111.1691584554) to watch the entire segment from AM Best TV.*     ## **How can insurance companies attract and retain talent?** Malaspina commented that there's a perception that working for an insurance company is a "stuffy job." But there are roles beyond underwriting and claims, such as marketing, finance, information technology, and human resources.    "Share the vast array of opportunities \[at your company\] to attract more talent," Malaspina said.     **Related:**  [HAI Group Career Center](https://www.housingcenter.com/career-center/) [5 Tips to Retain (and Attract) Affordable Housing Talent](https://blog.haigroup.com/5-tips-to-retain-and-attract-talent)   ## **How can insurance companies deal with a higher frequency of severe weather events?** Insurance companies use probability and statistics to model risk for severe weather events. Based on the weather patterns of the past few years, the current models likely need to be updated, Malaspina said.    According to Malaspina, carriers must plan accordingly by leveraging coverage terms and conditions, partnering with other insurance carriers, and leveraging the right kind of reinsurance.    **Related:**  [\[Free White Paper\] Navigating the Commercial Property Insurance Market in 2023 and Beyond](https://blog.haigroup.com/hubfs/2023%20Habitational%20Property%20Insurance%20Trends.pdf)   ## **How can insurance companies address cyber risk?** Malaspina said cybercriminals aren't just going after large companies. More than 70 percent of businesses affected by cybercriminals have less than 1,000 employees, he noted.    HAI Group insures public and affordable housing organizations across the country.    "Housing \[organizations\] are not immune \[to cyber risk\]," Malaspina said. "The strongest defense is the human firewall."   The human firewall concept entails leveraging staff training to help employees recognize the signs of a cybersecurity threat, such as a phishing email. Malaspina said cyber insurance policies are available to help businesses mitigate risk, but in today's digital world, securing a policy can be more complex than filling out an application.    According to Malaspina, some cyber insurance carriers may try to penetrate an applicant's system to test their protection level. The application may be denied if specific security measures like multi-factor authentication and secure backups aren't in place.    Related:  [How Affordable Housing Organizations Can Improve Their Chances of Securing a Solid Cyber Insurance Policy](https://blog.haigroup.com/how-to-increase-your-affordable-housing-organizations-chances-of-securing-a-solid-cyber-insurance-policy)   ## **How can insurance companies leverage artificial intelligence?** Malaspina said artificial intelligence (AI) will continue playing a role in the insurance industry and will likely create efficiencies that improve production in some business segments.    While efficiencies are to be gained, HAI Group is "people-centric," he added.    "The personal touch is valued \[at HAI Group\]," Malaspina said. "We're going to stick to it." The information presented is for general reference only. HAI Group makes no representation or warranty about the accuracy or applicability of this information for any particular use or circumstance. Your use of this information is at your own discretion and risk. HAI Group and any author or contributor identified herein assume no responsibility for your use of this information. You should consult with your legal, professional or subject matter advisor before implementing any new strategy or policy. HAI Group® is the registered trademark of Housing Authority Risk Retention Group, Inc. and its related companies. For a complete list of HAI Group companies, visit www.haigroup.com. Products or services may not be available in all jurisdictions. Certain property and casualty coverage may be provided by a risk retention group or a surplus lines insurer or by a third party. Risk retention groups and surplus lines insurers do not participate in state guaranty funds and their insureds are not protected by such funds. 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