Hartford : Everything you need to know

The Hartford: Everything you need to know

Year established: 1810
Corporate headquarters: 1 Hartford Plaza, Hartford, Connecticut 06155, USA
Number of employees: 18,500+
Written premiums commercial lines: $10.041 billion (2021)
Written premiums personal lines: $2.908 billion (2021)
Earned premiums, including group benefits: $17.999 billion (2021)
Total revenue: $22.39 billion (2021)
Underwriting expertise: Auto, home, and business insurance
Key people: Christopher J. Smith (chairman and CEO), Doug Elliot (president), Beth Costello (chief financial officer)

 

Pros

  • Well-established carrier with more than 200 years of experience in the insurance industry
  • Coverage available in all 50 states
  • Large selection of insurance products
  • Above-average customer satisfaction ratings for auto insurance
  • A+ rating by A.M. Best and Better Business Bureau (BBB)

 

Cons

  • Premiums can be costly if the policyholder is ineligible for discounts
  • Mixed customer reviews, with auto insurance complaints indexed below average with the National Association of Insurance Commissioners (NAIC) while home insurance complaints indexed above average

 

Common coverage types

Auto insurance
Standard coverage type What it pays for

Bodily injury liability

Costs for injuries or deaths from an accident that the policyholder causes

Property damage liability

Costs for property damage from an accident that policyholder causes

Collision coverage

Repair costs from traffic-related accidents, regardless of who is at fault

Comprehensive coverage

Damages caused by natural disasters, vandalism, theft, collision with an animal, or other covered peril

Uninsured/underinsured motorist coverage

Medical and property damage expenses for accidents caused by a driver who has no or insufficient insurance

Medical payments coverage

Medical and rehabilitation expenses arising from a covered accident

Personal injury protection (PIP)

Medical costs and other expenses after a car collision, regardless of who was at fault

 

The American Association of Retired Persons (AARP) offers auto insurance coverage to its members through a partnership with The Hartford. These policies automatically include:

 

Coverage type What it pays for

New car replacement coverage

Cost to replace the policyholder’s car with one of the same make, model, and equipment, without subtracting anything for depreciation

RecoverCare

Cost to do activities the policyholder is unable to perform due to injuries suffered from an accident, including house cleaning, lawn maintenance, snow removal, transportation services, food preparation, and dog walking; and alternate transportation for those who cannot drive to work

Lifetime car repair assurance

Assistance from The Hartford’s 1,600+ approved repair shops in its network

24/7 car insurance claims hotline

Customer service assistance anytime

Additional coverages

Accident forgiveness

No premium increase after first accident, as long as all drivers on the policy have had a clean record for the past five years

Disappearing deductible

Reduction in collision deductible for policyholders who maintain a clean driving record

 

The Hartford’s auto insurance savings and discounts

  • Safety features – For cars equipped with safety features such as anti-lock brakes or extra airbags
  • Vehicle fuel type – For hybrid cars and electric vehicles
  • Driver training discounts – For drivers who are under 21-years old, or under 25 in Georgia, who complete an approved training course
  • Defensive driver course – Drivers who complete an approved defensive driving course are eligible for auto insurance discounts for the next three years
  • Bundle insurance savings – For policyholders who bundle car and home coverage with the AARP auto and home insurance program from The Hartford, up to 5% discount on car policy
  • Paid-in-full discount – Extra discounts apply for paying bills in full, instead of monthly installments

 

2021 J.D. Power customer satisfaction rating
905 out of 1,000 points (1st among auto insurers in the US)

 

Homeowners insurance
Homeowners insurance from The Hartford is available for AARP members in all states except Florida, according to the consumer website US News. Non-AARP members can check the availability in their states by contacting the company.

 

Coverage type What it pays for

Dwelling coverage

Damage to internal systems within the home such as wiring, plumbing, heating, and air conditioning

Other structure coverage

Repair costs for structures that are not directly attached to the home such as a detached garage

Personal property coverage

Losses of personal belongings, including furniture, clothing, and appliances.

Loss-of-use coverage

Temporary living expenses, up to the policy limits, if the home is unlivable after suffering a loss

Personal liability protection

Legal defense, settlement, and punitive costs, up to the policy limits, if a guest suffers an injury or property damage that the policyholder is legally responsible for

Medical payments coverage

Emergency medical bills if non-resident of the household is injured on the property and injuries caused by a pet or family member, regardless of where it happens

Valuable items blanket coverage (optional)

Expensive items, including jewelry, artwork, or collectibles

 

The Hartford’s  homeowners’ insurance discounts

  • Bundle home and auto insurance – Up to 5% on car, and 20% on renters, condo, or home insurance by bundling with the AARP Auto Insurance Program
  • Home security and safety device savings – Save on premiums by upgrading home security with a burglar alarm and sprinkler system
  • Retiree credit for retired AARP homeowners – Premium discounts for policyholders and their spouses who are retired or work less than 24 hours a week (state availability varies)
  • Renewal credit - For homeowners’ who have renewed their policies with The Hartford for four years

 

2021 J.D. Power customer satisfaction rating
855 out of 1,000 points (6th among home insurers in the US)

 

Business owner’s policy (BOP)

Coverage type

What it pays for

Business property insurance

Owned or rented building and equipment that the business uses in its daily operations, including physical locations, tools, computers, inventory, and accounts receivable

General liability insurance

Claims against the business, including bodily injury, property damage, and personal injury (e.g. libel or slander)

Business income insurance (business interruption coverage)

Lost income if the business is unable to operate because of covered property damage, including fire, wind, and burglary

Optional coverage

Business auto insurance

Costs resulting from an auto accident, including property damage and medical expenses, while the business owner or an employee is driving a company-owned car

Data breach insurance

Costs of responding to a breach if personally identifiable information gets lost or stolen

Professional liability insurance (errors and omissions coverage)

Claims resulting from alleged or actual negligence, misrepresentation, and inaccurate advice

 

2021 J.D. Power customer satisfaction rating|
803 out of 1,000 points (10th among small business insurers in the US)

 

About

General background
The Hartford Financial Services Group, Inc., also known as The Hartford, is an insurance and investment firm based its namesake city of Hartford, Connecticut. The company’s operations are divided between property and casualty (P&C) insurance, group benefits, and mutual funds.

The Hartford is a Fortune 500 company, ranking 142nd in the 2021 edition of the prestigious list. It is also one of the largest home insurance providers in the US, and the nation’s 13th biggest P&C insurers, according to the NAIC’s 2021 data. The insurer holds a partnership with AARP, exclusively providing home and auto policies to the association’s members since 1984.

Apart from homeowners’ insurance, the company offers condo and renters’ policies under its home insurance portfolio. Its range of auto policies, meanwhile, includes coverage for classic cars, RVs, ATVs, boats, golf carts, and snowmobiles. The Hartford also provides insurance products for small and large businesses in various industries, including construction, education, energy, healthcare, manufacturing, professional services, retail, and technology.

 

Brief history
The Hartford began as a fire insurance company in 1810. A group of local merchants gathered in a Hartford inn and, with working capital of $15,000, established the Hartford Fire Insurance Company. Fifteen years later, the company wrote its first insurance policy, covering Yale University – one of the most prestigious institutions of higher education in the country. 

The Hartford has dealt with some of the greatest peacetime tragedies in US history. In 1835, a large fire destroyed New York City’s financial district. The company’s then-president Eliphalet Terry, along with its directors, pledged their personal fortunes to pay for the claims. Other catastrophes that the firm assisted with include the 1871 Chicago Fire, which ripped through three miles of homes and businesses, and the 1906 San Francisco earthquake, which caused 500 of the city’s blocks to burn for days.

The 20th Century sparked technological evolution, prompting the company to find better ways to protect Americans. In 1913, The Hartford formed its Accident and Indemnity Company, which provided protection for automobiles and property against risks like fire, accidents, and liability. In 1931, the company helped insure the Hoover Dam, same with the Golden Gate Bridge in 1937 and the St. Lawrence Seaway in 1959.

The 80s brought new demands for businesses, families, and individuals. To help smaller businesses succeed, The Hartford became the first insurance provider to offer a dedicated small business service center in 1983. A year later, the firm expanded its coverage options by becoming the exclusive provider of home and auto insurance for AARP members.

The turn of the millennium marked another turning point for the US as the country was forever changed after the 9/11 terror attacks. The Hartford did its part to assist its clients, paying more the $850 million in claims.

 

Hartford at a glance – 2021/22

  • March 2022: Named as one of “World’s Most Ethical Companies” for the 13th time By Ethisphere
  • January 2022: Recognized as the top insurer on “America’s Most ‘JUST’ Companies” list for the third consecutive year
  • October 2021: Ranked No. 1 in customer satisfaction in J.D. Power’s 2021 US Auto Claims Satisfaction study
  • July 2021: Won the 2021 Novarica Impact Award
  • February 2021: Named a “Best Place to Work for LGBTQ Equality” For the 13th year

 

Leadership

Christopher J. Smith – chairman and CEO
Swift was appointed as CEO in 2014. He joined The Hartford in March 2010 as executive vice-president and chief financial officer. He also held senior leadership and finance roles at American International Group (AIG). Swift started his career as a certified public accountant at KPMG LLP and was eventually named as the firm’s head of the global insurer. He earned a bachelor’s degree in accounting from Marquette University, where he is also a trustee.

In his stint as CEO, Swift spearheaded the company’s transformation into a “more focused, disciplined leader” in the P&C insurance, group benefits, and mutual funds space. Swift led the expansion of the firm’s capabilities and geographic reach through organic growth and strategic investments. These include the purchase of Aetna’s US group life and disability business in 2017 and The Navigators Group, Inc., a specialty lines property and casualty business, in 2019. He also completed The Hartford’s exit from its life and annuity business, providing greater financial flexibility and improving the company’s return on equity and earnings growth profile.

 

Culture
The Hartford understands the importance of environmental, social, and governance (ESG) to the long-term success of its business and the insurance sector. Because of this, the company has embedded ESG principles throughout its operations, as well as collaborated with others in the business community to accomplish its ESG goals.

As part of its efforts to address rising greenhouse gas emissions, The Hartford has pledged to stop insuring or investing in companies that generate more than 25% of their revenues from thermal coal mining or more than 25% of their energy production from coal. It is also helping customers avoid investing in products that harm the environment by offering premium discounts to encourage the use of energy-efficient equipment and materials, as well as the purchase of electric vehicles (EV).

To set standards for the insurance industry and address inequality in our communities, The Hartford is holding its accountable by utilizing a Diversity Talent Mobility scorecard. This measures employee progress and puts in place a robust business continuity strategy, along with a Sustainability Governance Committee to oversee sustainability strategy and brief the Board of Directors at least annually.

The company is also spearheading several initiatives to end workplace stigma around the topic of mental health and addiction to ensure a productive and resilient workforce. To do this, The Hartford has removed stigmatizing language from its materials and has established partnerships with external organizations such as addiction treatment non-profit Shatterproof and the National Alliance on Mental Illness.

Hartford : In the news