(National Life Group employees at a Culture Connect meeting. Source: NLG.)

The insurance industry is accelerating its adoption of artificial intelligence, but the results are uneven. While many carriers are investing in platforms and data, fewer are addressing a more fundamental question: what kind of organization is required to use AI effectively? For National Life Group (Montpelier, Vt.), the answer begins with culture.

“When I think about AI and the future of the workforce, I always come back to the same point: strong organizational culture doesn’t happen by chance. You have to build that foundation before you can build anything else,” says Dr. Wendi Walker Schmidt, AVP, Learning and Organizational Development, National Life Group.

That foundation shapes how the company approaches technology, talent and performance. Rather than positioning AI as a replacement for human work, National Life frames it as an extension of human capability.

“We think of ourselves as an AI-augmented organization. This is about helping people be more productive and efficient, but we always need the human in the loop. People bring the innovation, imagination and empathy that sustain a relationship-based culture,” Schmidt explains.

Trust, Engagement and Measurable Outcomes

At National Life, culture is not treated as an abstract concept, but as a system that produces measurable outcomes. Central to that system is trust.

“A critical part of a strong culture is making sure people know they’re heard, understood and valued. When people feel that way, they’re willing to share ideas, engage in debate and challenge each other in a productive way,” Schmidt says.

That dynamic is reinforced through leadership practices that emphasize individualized engagement over standardized management.

“If leaders aren’t having conversations about what engagement means to each individual, and instead use a cookie-cutter approach, some people will feel discounted. We focus on equipping leaders to be intentional in how they engage with their teams,” she says.

The impact is visible in employee engagement metrics. While engagement has declined globally in recent years, National Life reports sustained improvement over the past three years—performance that has placed the company among the most highly engaged organizations measured by Gallup. National Life was recently recognized with the Gallup Exceptional Workplace award, an honor given to only 78 organizations worldwide.

“Our results speak for themselves. At a time when engagement is declining globally, we’ve trended upward over the past three years,” Schmidt notes.

Strengths, Leadership and Talent Mobility

A key component of that system is a strengths-based approach to talent.

“We implement Gallup Strengths across the organization. It’s based on positive psychology—understanding what people naturally do well and helping them build on that, rather than focusing primarily on weaknesses,” Schmidt says.

“When people build on their strengths, it takes far less cognitive and emotional energy than trying to improve areas that don’t come naturally. That’s a much more effective way to develop talent,” she adds.

The approach shifts the focus from individual completeness to team effectiveness.

“It’s not about creating a well-rounded individual—it’s about creating a well-rounded team. If something isn’t a strength for me but is a strength for someone else, then I need to collaborate and lean into that,” Schmidt says.

That same philosophy informs how National Life develops leaders—particularly at the point where individual contributors transition into people management roles.

“We introduced a program called Beginning Your Leadership Journey. When someone moves from an individual contributor role into a people leader role, they go through a three-month program, because those are two very different jobs,” Schmidt says.

The program is led by Dr. Tony Moore, who works with new managers to help them navigate that transition and develop the skills required to lead people effectively. The focus is not only on expectations and responsibilities, but on how to engage, coach and develop teams—areas where many organizations provide little formal support.

At the same time, National Life is working to broaden how employees think about career development.

“This approach helps us move beyond the idea of a traditional career ladder. People can take their knowledge, skills and abilities and move across the organization in ways that align with their strengths,” Schmidt says.

Culture as an Engine for Innovation

These elements—trust, strengths, leadership and purpose—combine to create an environment in which innovation can take hold.

“When people feel connected to the purpose of the organization, they feel empowered to innovate—to ask questions and put forward ideas that might seem unconventional,” Schmidt says.

That philosophy extends to how the company engages early-career talent. National Life’s internship program, led by Lauren Sunderhaus—herself a former intern—focuses on building connection as much as capability. Interns are encouraged to explore how their skills and interests might apply across the organization, rather than remaining confined to a single functional track.

The approach reflects a broader view of talent development: individuals are not defined solely by their current role, but by their potential contribution across the enterprise.

That sense of empowerment is particularly important in the context of AI, where uncertainty can lead to hesitation.

“From a learning and organizational development perspective, we partner with our IT and AI teams to create safe environments where people can experiment with AI and see how it can benefit their work,” Schmidt explains.

Underlying that approach is a broader philosophy about how organizations function.

“Engagement builds trust, trust encourages ideas, and those ideas drive innovation,” Schmidt says.

As insurers continue to invest in AI and digital capabilities, National Life’s experience suggests that the differentiator may not be technology alone, but the conditions under which it is deployed.

At National Life, those conditions are deliberately constructed—through leadership, talent development and a culture designed to bring out the best in people.

Designing for Relevance at National Life Group