In the US, which represents over 80% of TRUP's revenue, the penetration rate for pet insurance is ~2%. One potential reason for the low penetration is that congenital and hereditary diseases, the conditions most likely to happen to a pet, were historically excluded from the insurance contract. This rendered the product of limited added value to pet owners.
Not only did Trupanion decide to cover such conditions, it also offers Trupanion Express, a free software installed at the vet hospital that helps pay 90% of claims, directly to the vet at the time of checkout. This differs from the industry which requires the pet owner to pay out-of-pocket at the time of checkout, complete paperwork related to the veterinary procedure, and receive confirmation of coverage and the reimbursement value.
In FY22, Trupanion reported ~75% penetration across NA vet hospitals but only ~50% penetration of Trupanion Express.
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities.
© 2024 IP 1 Ltd. All rights reserved.
Subscribe to access hundreds of interviews and primary research