3 Pet Insurance Companies to Watch in Billion Dollar Market, according to Packaged Facts

Figo Pet Insurance, 4Paws Insurance, and Toto Pet Insurance offer plans with the kind of technological and customizable advantages that appeal to modern pet parents

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Packaged Facts

Nov 13, 2018, 11:27 ET

ROCKVILLE, Md., Nov. 13, 2018 /PRNewswire/ -- Given the size of the U.S. pet population, market penetration for pet insurance in the U.S. remains comparatively low. This is particularly true when compared to some Western European countries, such as the United Kingdom and Sweden, but this also indicates there is significant potential for market gains in the U.S., according to market research firm Packaged Facts. In the recent report Pet Insurance in the U.S., 6th Edition, Packaged Facts estimates America's pet health insurance market researched slightly more than $1 billion in 2017, will nearly double to reach $2 billion by 2022.

Packaged Facts also identifies three new entrants into the pet insurance that are worth keeping an eye on: Figo Pet Insurance, 4Paws Insurance, and Toto Pet Insurance. These three companies hit on important growth trends in the U.S. pet industry, including technology that streamlines the insurance claims process, customizable pet insurance plans and add-on coverage, and increased education regarding the benefits of pet insurance.

"These companies are looking to find market share in an emerging industry and provide another option to pet owners. While these companies 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," says David Sprinkle, research director for Packaged Facts.

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. 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.

About the Report

Pet Insurance in the U.S., 6th Edition examines the U.S. market for pet health insurance. This report provides both historical (2007-2017) and projected market size (2022) in gross written premiums and policies in force, reflecting insurance plans for cats and dogs. The report provides analysis of the factors affecting the market and growth opportunities going forward. The report provides pet population estimates and forecasts as well as demographic analysis of pet owners. Pet Insurance in the U.S., 6th Edition also analyzes the competitive environment for pet insurance, including profiles and market share for all the players in the industry. Analysis of alternative pet health financing, like pet credit cards and pet savings accounts, is also provided.

View additional information about Pet Insurance in the U.S., 6th Edition, including purchase options, the abstract, table of contents, and related reports at Packaged Facts' website: https://www.packagedfacts.com/Pet-Insurance-North-America-Edition-11907705/.

About Packaged Facts

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through MarketResearch.com.

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SOURCE Packaged Facts