Introduction of Small Amount Short-Term Insurance in June... "Focus on the Success of the 2nd Largest US Pet Insurance Company"

KIRI Report on 'Growth Cases of US Pet Specialty Insurance Companies'
Success Factors Including Diverse Coverage Items, Convenient Settlement Services, and Utilization of Partnerships

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[Asia Economy Reporter Ki Hayoung] Ahead of the introduction of small-amount short-term insurance in June, an analysis suggests that the differentiated strategy of 'Trupanion,' which is experiencing high growth in the U.S. pet insurance market, should be referenced.

According to a report titled 'Growth Cases of U.S. Pet Specialty Insurance Companies' recently released by the Korea Insurance Research Institute on the 6th, Trupanion has been growing by more than 20% annually in operating profit since its listing on the U.S. stock market in 2014. The company started its pet insurance business in Canada in 2000 and entered the U.S. market in 2007. It currently holds the second-largest market share in the U.S. pet insurance market. Unlike Nationwide and ASPCA, which rank first and third and are comprehensive insurance companies, Trupanion is a pet insurance specialty company.

The report cited various coverage items, convenient settlement services, and the utilization of partnerships as differentiated business strategies contributing to Trupanion's success.

Trupanion's basic coverage items include diagnostic tests, surgeries, hospital treatments and medications, veterinarian-prescribed supplements, herbal treatments, and prosthetics. Additionally, it covers acupuncture, behavior modification, acupressure, homeopathy, hydrotherapy, physical therapy, and rehabilitation therapy. Policyholders can choose between emergency and general treatments for their pets, paying a 10% deductible, with the remaining medical expenses covered without limit.

Another feature is the direct payment of insurance claims to veterinary hospitals through an in-house settlement system and the operation of a year-round consultation service. Trupanion provides veterinary hospitals with a medical expense settlement system developed in collaboration with a software company. Policyholders receive insurance payments directly through this system. To promote the spread of the settlement system, veterinarians who recommend Trupanion’s system to other veterinarians receive a $225 bonus per case. Furthermore, policyholders can communicate directly with the insurer via the company’s website and social media platforms such as Facebook, and receive consultation services anytime via phone or chat.

Trupanion is expanding its market through active business cooperation not only with pet-related companies in North America but also with other insurance companies. It has established partnerships with companies distributing animal medical supplies, veterinary hospitals, and animal care service companies. In particular, to expand sales areas, it formed business partnerships with the property insurance company State Farm in 2018 and the life insurance company Aflac in 2020, using these companies’ sales organizations to start selling pet insurance nationwide in the U.S.

Researcher Lee Soyang of the Korea Insurance Research Institute said, "Trupanion’s success is a case where a pet specialty insurance company, which may lack capital, has grown through differentiated services and cooperation with various players in the pet industry and insurance industry," adding, "It provides implications for Korea, which is about to introduce small-amount short-term insurance such as pet insurance."

This content was produced with the assistance of AI translation services.