The pet health insurance market is about to get even more crowded.
A property insurance provider called Lemonade intends to compete in the U.S. pet insurance channel sometime in 2020. More than a dozen insurers, ranging from industry leader Nationwide to newcomers Spot and Prudent Pet, sell about $1.5 billion a year in policies and cover more than 2.4 million U.S. cats and dogs.
Lemonade Insurance Co., based in New York, is marketing its pet policies as providing “lightning-fast claim payments” and “best-in-class customer service.” Under the company’s Giveback program, underwriting profits will be “donated to causes our policyholders care about.”
“Many at Team Lemonade, myself included, are devoted pet parents, so we decided to build the dream pet health insurance product for our best friends,” said Shai Wininger, chief operating officer and co-founder. “Many of us think of our pets as family members, yet so few of us take the important step of getting them health insurance. We challenged ourselves to create a product that will close this gap and make pet health insurance affordable and accessible.”
According to the North American Pet Health Insurance Association, less than 2% of cats and dogs are insured.
Lemonade expects to launch pet insurance “within a few months, pending regulatory approval.”
Did you know a subscription to Today’s Veterinary Business is free to qualified veterinary professionals? All you have to do is sign up here (and renew each year). You also can sign up to receive the Today’s Veterinary Business weekly e-newsletter.