Insurtech carrier Lemonade plans to debut pet insurance later this year.
Lemonade says it hopes to launch the pet insurance product within a few months, pending regulatory approval. It has opened its site to early registrations.
The digital insurer, which now sells homeowners and renters policies, said its new product will be designed exclusively for cats and dogs and will be based on the same principles as the company’s other products: a hassle-free digital experience for buyers, fast claim payments and a donation of leftover premium to charitable causes chosen by customers.
Shai Wininger, Lemonade’s chief operating officer and co-founder, said the new coverage is designed to be affordable and accessible. He added that many at the company, including himself, “are devoted pet parents.”
His company is not alone in trying to turn its devotion to pets into profits.
In December, MetLife agreed to acquire PetFirst Healthcare, a pet insurance program administrator that distributes through animal welfare agencies, direct-to-consumer channels and employers. Last April, Program specialist NSM Insurance Group acquired Embrace Pet Insurance, a Cleveland-based national provider of pet health insurance for dogs and cats.
According to the North American Pet Health Insurance Association, the pet insurance marketplace has more than 12 companies, including many that also market or underwrite multiple white label or co-branded products. The organization says pet insurance is a $1.42 billion market.
Rick Faucher, president of NAPHIA’s board of directors, and president of the Pet Health Division for The IHC Group, notes that the industry continues to see tremendous growth and interest. “Beyond what our industry data tells us, there are many other indicators that pet health insurance is a robust line of insurance,” said Faucher in recent remarks. “There have been several acquisitions of pet insurance companies this year, and we’re seeing a number of new market entrants.”
Lemonade currently sells its homeowners and renters insurance in more than 25 states. It has also started offering contents and liability insurance in Germany.
Last April, Lemonade reported a $300 million Series D funding round led by SoftBank Group with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.
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