The North American pet insurance industry is finally taking off
Trupanion recently released a report that showed that it has been experiencing considerable growth in revenues.
Although pet insurance is carried by a small minority of dog and cat owners, the current trend has shown that the number of people who have coverage for their beloved animals is starting to grow in a very meaningful way.
The market is on the rise and insurance companies are looking to take advantage of this revenue stream.
In the example of Trupanion, a pet insurance company from Seattle, the 2015 first quarter earnings report showed that things were headed in a very positive direction. In fact, they experienced an increase in revenues of over 30 percent when compared to the same quarter in 2014. This brought the insurer’s revenues to $33 million.
It is important to point out that the pet insurance provider did lose almost $5 million on its revenue.
However, it is equally important to point out that this loss amount was nearly exactly the same as the amount that was reported during the first quarter of 2014. The Turpanion results were slightly better than analysts had been expecting for that insurance company and the company has stated that it is predicting that the second quarter will see a revenue of somewhere between $34.5 million and #6.5 million.
According to the CEO of the insurance company, Darryl Rawlings, “We are encouraged by the growing interest in Trupanion.” He added that “We feel confident that Trupanion is well positioned to lead our category in both the near and long term.”
The insurer’s report also provided some additional insight into the animal insurance industry’s trends, as Trupanion saw a considerable spike in the number of pets that had been enrolled in its insurance policies. In June 2013, there had been almost 156,000 dogs and cats that had been enrolled by their owners into the Trupanion coverage program. The current figure now stands at over 246,000 animals. This represents an increase of 57 percent in under two years.
Among the main drivers pushing animal owners to buy pet insurance for their dogs and cats is the rapidly increasing cost of veterinary care. As treatments become more complex and widely available, the price tag associated with animal health care has undergone a significant rise, causing owners to want to protect themselves against having to make choices between their finances and their beloved pets.