Three Newest Pet Insurance Companies Stake Their Claim

Three Newest Pet Insurance Companies Stake Their Claim

Since 2015, three new players have entered the U.S. pet insurance market. These companies are looking to find market share in an emerging industry and provide another option to pet owners. While Figo Pet Insurance, 4Paws Insurance, and Toto Pet Insurance are new on the scene, their business models and activities exemplify overall market trends. Spurred by a huge population of uninsured pets, these companies are hoping to seize the market opportunity in the U.S. going forward.

According to the North American Pet Health Insurance Industry Association (NAPHIA), there were 1.83 million pet insured in the U.S. in 2017. Given the size of the U.S. pet population, market penetration for pet insurance in the U.S. is still very low. This is particularly true when compared to some Western European countries, like the U.K. and Sweden, and indicates the significant potential for market gains in the U.S.

Figo Pet Insurance

Figo Pet Insurance was founded in 2015 and its plans are underwritten by Markel Corporation. The company was founded with the idea of adding more technology to the pet insurance industry. According to the CEO, Rusty Sproat, in a Chicago Tribune article in April 2015, “I began researching it and saw a huge gap with technology and brands within the industry…The more I researched it, the more I was surprised at how, in a time when everybody is pushing technology to make things easier, there was a lack of technology that was in the pet insurance space.”

Figo Pet Insurance offers three plans that range in reimbursement levels. The Ultimate Plan reimburses up to 100% of veterinary bills and has no limits on claim payouts. The company offers the Figo Pet Cloud, which is a cloud-based service that enables pet medical record management via a smartphone application.

Technology that streamlines the claims process is a growing trend in the pet insurance industry. More players now offer electronic submission of claims so they can speed up the processing and reimbursement process.

4 Paws Insurance

4Paws Insurance is a brand of NSM Insurance group. The plans, which are underwritten by Arch Insurance Company, a subsidiary of Arch Capital Group, began offering plans in August 2017. In April 2018, 4Paws Insurance received the 2018 ITA Bridge Award for its rollout of the new pet insurance brand.

4Paws Insurance has up to 90% reimbursement levels for eligible services and annual deductibles ranging from $100 to $500. The plans cover illnesses, accidents and injuries, hereditary and congenital conditions, among others. Additionally, 4Paws Insurance offers three different wellness add-ons that give the pet additional coverage for services like dental cleaning, wellness exams, and deworming.

Customizable plans and add-on coverages are offered by many brands of pet insurance today. Customizable plans allow the consumer to pick a plan that both fits their needs and their budgets. The add-on coverages range from covering wellness services to those that provide end-of-life benefits.

Toto Pet Insurance

Toto Pet Insurance, which launched in July 2018, is newest market entrant to pet insurance. The insurance plans are underwritten by Independence American Insurance Company, a subsidiary of Independence Holding Company.

Toto Pet Insurance offers a customizable plan called CompanionCare and a number of add-on coverages including those that cover exams, inherited or congenital conditions, end-of-life expenses, and preventive services. Through the Company’s TotoCares fund, 20% of the insurance fees it receives are given to veterinarians to save dogs and cats with treatable conditions that would otherwise be euthanized. The Toto Pet Insurance website details a number of the success stories from this program.

Pet insurance companies often provide examples of the benefits of pet insurance, whether that be about a story from a charitable program or one regarding a recently processed claim. The stories provide first-hand accounts of the value provided by pet insurance and how it can help save animals lives. Moreover, these stories help to increase consumer education and raise awareness of pet insurance.

For More Information

For more information on these new players in the pet insurance market and the market trends mentioned, check out Packaged Fact’s study, Pet Insurance in the U.S., 6th Edition, which offers:

  • Market factors discussed in detail
  • An examination of growth opportunities for pet insurance companies
  • Analysis of the channels of distribution for pet health insurance
  • In-depth looks at marketing and educational strategies
  • A breakdown of insurance plan offerings and differences
  • Merger and acquisition and cooperative agreement activity in the industry
  • Market share for all the U.S. pet insurance companies
  • Competitive advantages and corporate developments of pet insurance companies
  • Details on competing pet health financing options
  • Pet population estimates and forecasts
  • Demographic highlights and detailed data of pet owners

About the Author: Dan Debelius is an analyst at The Freedonia Group, where he writes industry studies on the consumer and commercial goods market.