The Suit Magazine

Other businesses may be taking steps backward due to the economic crisis, but Dan Labrie’s Housing Authority Insurance Group is proudly going in the opposite direction thanks to its one-stop insurance shopping service. Made up of 10 companies, half nonprofit and half taxable, the Housing Authority Insurance Group is equipped to provide value-added products and services to public and affordable housing providers. “We wanted to set up a strategy that gave our policyholders one place to buy the insurance they needed,” said Labrie.

Labrie, a 30-year veteran of the insurance industry, previously worked as an underwriter for large companies. But soon he decided he had more to contribute; in 1987, he took a chance on HAI Group, a small start-up company with four staff members. He became the fifth.

And in 1999, Labrie became HAI Group’s CEO.

Labrie’s main focus since that day has been to construct a business model different from other insurance companies. While others focus on commodity-based products, HAI Group pays attention to a value-added product, which means that they attempt to foster long-term relationships with clients rather than simply maximize profits. “We are able to help them improve their management, help them solve business issues, and help them come up with products and services beyond insurance that will make a contribution to their success,” said Labrie.

“The experience of a customer is very important. It goes beyond paying premiums.”

It is HAI Group’s attention to exemplary customer service for the public and affordable housing communities that has garnered them monetary benefits. Starting with $3 million in capital and surplus, the company now has $289 million in surplus and has paid over $100 million in dividends. “We were not expecting significant income; we were much more focused on the relationship with our customers,” Labrie said. “Over the last six to seven years, our income level has exceeded our expectations.”

According to Labrie, the only significant challenge his company has faced is unpredictable weather. “We provide property insurance, and the weather has not cooperated very much. We’re also looking right now at the potential of hurricanes, so there’s a concern about that because those can generate huge losses.”

But those problems haven’t stood in the way of growth. Despite meteorological unpredictability and revenue that slowed mildly in a troubled economy, HAI Group has recently added two new companies to its list: a software company and a business that researches and analyzes U.S. housing data. The additions make HAI Group more knowledgeable about their industry—and better equipped for the future.

“We’re coming up with a 10-year vision of what this company is going to look like,” said Labrie. “I’m very optimistic.”

For more information please visit: www.housingcenter.com

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