With the right business model and systems, pet insurance is a profitable line of business. What’s more, it is a very “sticky” product, for building enduring relationships with customers with all the opportunities for cross and upsell that presents.
June 27, 2017
The number of ‘pet’ projects Aquarium has in the pipeline are testament to an industry that’s looking as fit as a butcher’s dog. A Financial Times report concluded 80 brands now sell pet insurance, a 15 per cent rise on a decade ago and Aquarium’s own research shows 69 per cent of people say pets are as important to the family as the humans. This, coupled with expensive new treatments, is driving demand and fuelling new business.
“The latest research reinforces what we are seeing in the marketplace,” said Mark Colonnese, Sales and Marketing Director at Aquarium Software. “Demand is up and we are seeing a spike in orders for our insurance technology platform from insurers aiming to improve their pet proposition, or intending to bring one to market.”
Colonnese sees the pet insurance surge through the prism of the market’s untapped potential. New premiums up; new policy providers up and according to the Association of British Insurers, pet insurers paid out £706 million in 2016, up seven per cent on the 2015. More than two fifths (42 per cent) of all pet owners have never had insurance and 72 per cent do not currently have it, leaving plenty of scope for new business opportunity.
“39 per cent of policyholders who made a claim said service was good; whilst only seven per cent reported poor service,” added Colonnese. “Insurers just need to shout about the benefits. With the right business model and…