There are more than 100 million cats and dogs registered as pets in the United States, but only two percent are covered with pet insurance. In comparison, there are an estimated 20.8 million cats and dogs in the UK – 30 percent of which are covered by pet insurance.
The first pet insurance policy issued in the US was in 1982. But since then, there has been a considerable lack of technological innovation in the US insurance industry.
During this time there has also been huge growth in both the number of pet owners and the variety of species being registered – resulting in vet care and animal medicine cover making up a substantial part of the overall revenue generated by US pet market sales.
Despite the large volumes of registrations and policies, the manual claims management process is outdated, costly and negatively impacts customer service.
Pet insurance 2.0
Many insurance providers have found that digitising insurance processes has driven efficiency, reduced costs, and improved customer relationships in the long-term. Digital transformation and the use of Big Data has played a key role in enabling insurance providers to analyse market trends in real-time and offer tailored premiums and customer advice based on several factors, including: species, age, breed, geography, dietary requirements and much more.
To easily analyse and collate this data, insurance providers can utilise digital platforms to manage and implement policies, claims management and customer service procedures. Using digital platform technology to automate these processes can significantly improve customer relationships by providing them digital access to expert knowledge and advice throughout the life of their policy.
For example, a German shepherd owner in Texas may be able to speak directly to a veterinary surgeon in New York who specialises in hip replacement operations. Similarly, the owner’s insurance company could warn them via a digital alert of their pet’s genetic disposition to hip dysplasia and provide regular dietary advice to limit the risk. In digitising the process, insurance premiums can be reduced, and the industry will become much more efficient – while consumers and their pets can get quick and easy access to the knowledge they need.
The Aquarium platform provides an intelligent solution which deals with all aspects of insurance propositions. This includes integration with practice management systems to support digital claims submission. Our aim is to penetrate the pet insurance market in the United States and Canada so providers can benefit from innovative digital strategies in real-time.