Human resources (HR), employee benefits and evolving technology are converging in new ways and illustrating the need for simplicity, according to The Hartford’s 2026 Future of Benefits Study.
The findings point to growing demand for integrated, tech‑enabled solutions and clearer support around education and enrollment, rather than stand‑alone products.
Nearly three-quarters (73%) of HR professionals surveyed said their day‑to‑day responsibilities have increased in recent years. At the same time, 64% reported that managing multiple carriers is challenging, and at least two in three cited simplicity and cost as top reasons for selecting a single non‑medical carrier.
That combination is significant for benefits insurers. Employers are increasingly looking for “one‑stop‑shop” arrangements that bundle life, disability, supplemental health and leave/absence management with integrated enrollment tools, standardised leave products, consolidated administration and centralised claims expertise.
In practical terms, that creates an opening for carriers that can offer broad product suites on a single platform, and a risk for niche writers that rely on being one of several vendors in a fragmented benefits stack.
The study found employers are open to using artificial intelligence and digital tools in benefits, but not at the expense of human support where it matters most. Eighty‑five per cent (85%) of employers said they are still exploring how to use AI effectively at work, while 82% said they’re comfortable using AI for parts of their job. More than half (54%) indicated that HR technology and benefits platforms are “highly influential” in selecting benefits, signaling that insurers’ integration with major HRIS and benefits administration systems is increasingly a competitive differentiator.
At the same time, 95% of employers said they want digital tools for simple or transactional tasks, and a human for sensitive and more complex issues. That suggests strong appetite for self‑service for routine changes, claims status checks and basic inquiries, but a continued expectation that complex disability, leave and health claims will have access to experienced case managers and claims handlers. Insurers that lean too far into automation at the expense of human support risk misalignment with buyer expectations, particularly around high‑stress claims events.
The study also underscores a persistent challenge - that of educating employees on benefits. Seventy‑nine per cent (79%) of employers said benefits education remains difficult, with workers often navigating multiple platforms, messages and decisions during open enrollment. To address this, 95% of employers reported taking steps to improve their 2026 open enrollment experience, with many deploying digital decision‑support tools and AI‑driven recommendation engines to help employees choose appropriate coverages.
For the insurance market, that translates into continued demand for carrier‑provided communication content, calculators and recommendation tools, as well as pressure on insurers to simplify product design and language so employees can understand and value voluntary and supplemental benefits.
The study also highlights differences by size. Smaller businesses are more dependent on intermediaries for communication, with 58% of small employers said they look to brokers for open enrollment guidance, compared with 42% of larger employers. That reinforces the central role of benefits brokers and advisers in distribution, employee education and carrier selection.
The Hartford’s research suggests that benefits insurers operating in the US market will face more requests for proposals geared to consolidation, as employers look to reduce the number of non‑medical carriers and seek integrated administration and technology. They will also face a higher bar on technology integration, with HR and benefits platforms influencing carrier selection and requiring robust APIs and data exchange, and a continued need for hybrid service models that combine digital self‑service and AI tools with human expertise on complex claims.
Ongoing reliance on brokers, especially in the small and mid‑market, for communication support and to interpret crowded benefits menus, is also likely, according to the report.
“Carriers with insight into today’s evolving workforce will be best positioned to create effective solutions that support all workers,” said Mike Fish (pictured), head of employee benefits at The Hartford, in the report.
Success in the 2026 benefits market will depend less on individual products and more on how well those products are wrapped in integrated technology, simplified administration and credible support for overburdened HR teams and confused employees.
