The Hartford's 2026 Playbook: AI-First Execution, Rate Discipline, and SME Scale
The Hartford closed 2025 with momentum in commercial lines, a repaired personal auto book, and a clear message for 2026: keep margins tight, grow where the math works, and use AI to speed decisions without losing underwriting rigor.
Executives pointed to an 8% net written premium lift in business insurance, a strong combined ratio in commercial, and early productivity gains from AI. The small commercial engine remains the differentiator-and it's being replicated upmarket.
The AI-First Shift Is Operational, Not Theoretical
After years of modernizing core platforms, data, and cloud, The Hartford says it's now reworking processes with an AI-first mindset. "We have moved to the next phase of our innovation agenda, reimagining our processes and workflows with an AI-first mindset," said CEO Christopher Swift.
Early wins include claim record summarization, underwriting insights at the point of decision, and contact center improvements using Amazon technology. The theme: practical tools that speed judgment, improve accuracy, and create smoother experiences for customers, employees, and distribution partners.
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If you're building AI fluency across underwriting, claims, and operations, here's a curated starting point: AI courses by job.
Where Growth Showed Up in 2025
- Commercial lines: Q4 net premium growth of 6.5%; combined ratio of 83.6.
- Personal lines: Q4 combined ratio below 80; written premium down 2.4% for the quarter.
- Small business: Industry leadership supported by long-standing agent/broker relationships and top-ranked digital experience for seven years by benchmarking firm Keynova Group.
- Prevail (personal lines platform): Launched direct in 2021; extended to agents in 10 states in 2025 with a plan to reach 30 states by 2027.
Pricing Signals Heading into 2026
Business Insurance renewal written pricing was up 6.1% in Q4 excluding workers comp. Property pricing moderated but remains attractive and profitable. Commercial auto stayed in the low double-digits; general liability held in the high single-digits; excess and umbrella pushed further into double-digits.
- Small Commercial: Renewal pricing 4.3% (7.7% ex. comp), with net written premium up 9%. Property components moderated; package property expected to stabilize in 2026. Liability pricing in high single-digits remains firm.
- Middle & Large: Renewal pricing 4.5% (6.2% ex. comp), written premium up 5%.
- Global Specialty: Renewal pricing 3.9%, written premium up 5%.
SME: The Engine with Room to Run
Swift underscored digital capabilities, a strong BOP product, and E&S placement embedded into workflows as growth levers in small commercial. "We have built a wonderful smooth-running machine that is differentiated in the marketplace… For us, really, the sky is the limit," he said, noting buyers' preference to consolidate with carriers that can cover more needs end-to-end.
The Hartford says its middle and large account capabilities are catching up to its SME strengths. Whether it's AI, automation, speed, accuracy, or using richer data assets-leaders framed the goal as a more efficient underwriting process with cleaner experiences for agents, brokers, and customers.
Property Outlook and Margin Posture
Property rate deceleration should flatten soon, according to President Mo Tooker, while liability rate momentum continues. Small business products are meeting target margins.
On profitability guardrails, leaders cited an underlying combined ratio of 88.5 (excluding cats and PYD) as the starting point. The guidance to underwriters: protect margins first. Grow where it makes sense; accept slower top-line if pricing erodes quality.
Personal Lines: Price Up, Volume Mixed
Q4 brought double-digit increases for both auto (10.4%) and home (11.9%). Overall written premium declined 2%, though agency premium rose 15% year over year.
Looking forward, policy counts in the agency channel are expected to rise for both auto and home in 2026. Direct remains competitive and will be harder to scale near term. Prevail's agency rollout continues, aiming for 30 states by 2027.
What Executives Should Watch in 2026
- Rate vs. trend discipline: Keep renewal premium change above loss trend without pushing customers into shock lapses-"steady bites at the apple."
- Property plateau: Expect stabilization; monitor filings and competitor pace. Liability needs should keep pricing firm.
- SME share shift: Buyers prefer fewer carriers that can handle everything. Digital intake, E&S access, and straight-through processing will decide who wins.
- Channel strategy: Agency growth looks healthy; direct remains tough. Continue to streamline agent workflows-time is their scarcest resource.
- AI ROI: Track cycle-time cuts, hit ratios, severity leakage, FNOL-to-close, and call center NPS. Productivity and margin proof beats demos.
- Underwriting guardrails: Don't chase rate where loss trend or exposure mix doesn't justify it; protect the starting UCR and let market share follow capability.
Bottom Line
The Hartford is setting up 2026 around three ideas: AI-enabled speed, rate adequacy by line, and SME scale. If property stabilizes and liability holds firm, the company has room to grow at or above the market-without giving up margin quality.
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