American Family's partnership with Creative Destruction Lab pays off

When American Family Insurance began to connect with Creative Destruction Lab (CDL) in 2018, I knew the potential for a productive partnership was high. Given CDL’s established programs, global reach, and innovative approach to supporting seed-stage startups, I had little doubt we could create a mutually beneficial endeavor. Although they have many partners across their growing list of “streams,” we were to be their first founding corporate partner and that in and of itself was an exciting possibility.

And although the pandemic made in-person gatherings impossible, CDL shifted its program quickly to a zoom format, while keeping the energy, focus and approach alive and well. In fact, the change benefitted our program in certain ways – including our ability to recruit more ventures and mentors internationally, given they don’t need to travel to Madison. CDL-Wisconsin, the first stream focused entirely on managing risk, brought 20 startups together, including from Belgium, Canada, France, India, Luxembourg, South Africa and the United Kingdom.

American Family Insurance along with the Creative Destruction Lab and the University of Wisconsin-Madison – specifically the UW schools of Computer, Data and Information Science, and the Wisconsin School of Business – as critical partners – kicked off our first CDL-Wisconsin daylong meeting in late November 2020. When I looked around the Zoom room at the expertise and talent around me and I was awed and humbled. This talent came in the form of the more than 20 respected and experienced business leaders giving their time and talent to serve as mentors, as well as the entrepreneurs themselves.

Although each of the CDL programs and streamshave different focus areas having this one focused on society’s ability to manage risk feels particularly relevant in this moment. At a time when we’re searching for ways to address a global pandemic, climate change, cyber threats, systemic racism and so many other risks to the health and safety of individuals, communities and businesses this emphasis couldn’t be more timely or important. And, as part of the insurance industry, I’m always interested in hearing about innovative ways to mitigate risks of all kinds – especially for our customers.

The companies and their products ran the gamut – from those developing new types of parametric insurance that reach customers underserved by indemnity-based insurance, to early detection of wildfires, to decision-making using AI and beyond – these are real and novel approaches that can be put into practice to mitigate risk. As an employee of a large and well-established property and casualty insurance company, it can be exhilarating to watch the leaders of these emerging businesses build the airplane while they’re flying. It’s been a great reminder to me that the industry can be stretched and challenged in a number of ways, and that it may require more of this type of risk taking at a micro scale in order to better manage the macro risks we all face. These types of engagements are an important way for our companies and industries to move forward as we try to address risks and threats that are often moving faster than we are.

We have four additional similar sessions as these startups hit milestones and tackle the questions the program mentors raised during the first meeting. I join the rest of the mentors and participants in looking forward to these sessions, and I’m grateful to be learning so much that can move my company and our industry forward as we mitigate risk for our customers and communities.