The pet insurance game is about to change: get ready for the digital market disruption
Pet health is a very attractive insurance vertical
More than two-thirds of Americans have pets. Over the last ten years, spending on pets has nearly doubled and estimates at over $70 billion annually in the United States alone.
Yet, only a tiny fraction of pet owners in the U.S. have pet insurance, with numbers ranging between 1 and 2%, meaning that the growth potential is immense.
Significant shifts in the pet insurance market
In 2020, pet insurance was a $1.42 billion market, and the industry continues to see tremendous growth and interest.
New players are starting to enter the scene. For example, a US-based insurtech unicorn, Lemonade, moves into pet insurance and its existing offering of homeowners and renters insurance. Since the majority of Lemonade’s existing customers are pet owners, this move makes sense.
But Lemonade is just one digital insurer that is recognizing the profitable opportunity in this underserved vertical. There have been several significant acquisitions of pet insurance companies this year, and we’re seeing a growing number of new market entrants. Recently MetLife acquired PetFirst Healthcare. Last April, Program specialist NSM Insurance Group acquired Embrace Pet Insurance, to name just a few.
Customers crave simplicity
Digital insurers are opening up new markets. For example, around 90% of Lemonade customers are first-time insurance buyers. Lemonade persuaded the whole new generation of consumers to get insurance coverage for the first time in their lives by giving them what they want – a simple and seamless experience from customer onboarding to claims: no complicated paperwork, no lengthy claim approval processes. Everything is handled quickly, efficiently, and entirely digitally.
New digital insurers are bringing the same simplicity into the pet insurance market.
And guess what? That is precisely what customers want.
How pet insurance providers can compete with digital disruptors
Digital products are based on principles that make them attractive to younger generations: a hassle-free digital experience, fast claim payments, and a sense of community and belonging.
To compete with new offerings, more traditional pet insurance carriers need to deliver one thing, among others: a simple and seamless digital customer experience. Young generations will not stick around for anything less than a stellar end-to-end experience with their insurer.
But how can insurers step up their digital game? The answer lies in no-code development platforms.
Upgrade your pet insurance product in hours with a no-code development platform
With a no-code platform, traditionally slow-moving insurance companies can finally embrace startup agility to compete with the digital-first newcomers such as Lemonade.
Using a platform that supports any business case with pre-built components can significantly boost the Time-to-Market of any digital product – including a range of pet health insurance offerings.
With code and traditional IT investments, building a fully digital pet insurance product could easily take months. In a fast-moving market, it might be too late. With a no-code platform, insurers can release a fully functional, responsive, and user-friendly pet insurance product in a matter of days, hours, and even minutes. Curious how it works? Schedule a demo with our team and check out how Petplan dramatically reduced labor costs by digitizing claims with EasySend.