It seems that the summer of 2020 is the summer of pets in the insurance sector. In addition to the announcement of a new offer by Lovys on the French market, the American giant Lemonade launched its product dedicated to cats and dogs on American territory. A novelty far from being due to chance, since health insurance for pets is still a market to conquer.
- In brief: Lemonade wants to modernize health insurance for pets
- Lemonade is an American insurer founded in 2016, initially specializing in home insurance;
- In the summer of 2020, Lemonade announced the launch of a new pet insurance product;
- For around 10 euros per month, Americans can now cover their cat(s) and/or dog(s) thanks to Lemonade's insurance offer, powered by AI and algorithms ;
- Several plans are available, with different levels of coverage;
- Lemonade offers its home insurance customers the opportunity to benefit from attractive prices by combining different insurance policies, and therefore adding protection for their animal with Lemonade.
Pets: new customers in the insurance world
This summer, various insurance players have announced the launch of new products specially dedicated to pets. We mentioned the new dog-cat insurance from the neoinsurer Lovys some time ago, and today, we are interested in the recent offer from the American giant Lemonade, founded in 2016.
Also launched in July 2020, Lemonade's newly unveiled pet health insurance is true to the company's model, ” powered by AI (artificial intelligence, editor’s note) and behavioral economics “. The offer is deployed in 33 states in the United States.
Creating the ideal pet health insurance from scratch was an adventure in design, customer experience and empathy. As pet parents, we found that the options were non-existent, so we created a product for cats and dogs from scratch. This means creating an insurance policy that is small and easy to understand, and a customer experience crafted at its core with the pet and pet parent at its heart. – Shai Wininger, COO and co-founder of Lemonade.
As with its competitors, Lemonade offers its new insurance product focusing exclusively on coverage for cats and dogs. In this area, there is everything to invent. While there are obviously already similar products – including in France, such as Otherwise's animal insurance, that of Assur O'Poil or those of Carrefour and AssurVeto – the market is new, fresh, and waiting to be conquered.
This issue seems very clear for Lemonade, which offers a very affordable offer, starting from 12 dollars monthly, or around 10 euros.
In addition, the American insurtech is leveraging the loyalty of its current customers, by offering a promotional offer with a 10% reduction on their monthly premium if they also have home insurance with Lemonade, coupled with that for animals. of company. This represents one of Lemonade's strongest selling points. Indeed, Daniel Schreiber, CEO of Lemonade, during an interview for TechCrunchrevealed in February 2020 that 70% of their home insurance customers (owners and tenants) were also pet owners. A situation that confronts another figure: only 1 to 2% of pet owners are covered by health insurance for their four-legged companion. The calculation was therefore simple.
Lemonade: The story of a singular success in the contemporary world of insuranceThe launch of Lemonade's pet health insurance offering coincides with its IPO and since then, its price has almost tripled. In addition, at the same time, Lemonade raised 480 million dollars – around 410 million euros – in institutional investments from companies like Sequoia and Allianz, recalls TechCrunch.
Pet health insurance: what does Lemonade offer?
In its press release, the insurer specifies its approach: “ Pet parents can now enjoy peace-of-mind coverage with a digital experience, as well as super-fast claim payments for their four-legged family members. »
Lemonade’s pet health insurance covers, among other things:
- Diagnostics : blood tests, urine tests, x-rays, MRIs, laboratory tests, CT scans, ultrasounds;
- Interventions : outpatient, specialized, emergency treatments, surgical interventions;
- Treatments : injections and prescription medications.
And it also works in case of:
- Diseases : vomiting, diarrhea, infections, cancers, heart disease, diabetes, allergies, arthritis, skin diseases, shoulder and hip dysplasia, hernia, blood and eye problems;
- Accidents : unforeseen events such as road accidents or poisoning following injury, illness, broken bones or sprains.
Several levels of coverage exist, with different formulas. There is the “Accident and Illness Package”, which allows you to benefit from even more comprehensive coverage, taking into account poisoning and a number of illnesses. But also the “Extended Accident and Illness Package”, which authorizes extended reimbursement for multiple health procedures, such as hydrotherapy, acupuncture and physiotherapy. Finally, the “Preventative and Wellness Package” is also available as an option, allowing you to take care of your pet on a daily basis. In fact, this covers preventive interventions such as an annual health check-up for your cat or dog.
While we often talk about the love we have for our pets, it is also crucial not to forget that having them at home is a responsibility, and that taking care of them costs money. . In France as in the United States, the dog-cat health insurance market seems to be flourishingand this is easily explained: the financial impact of medical procedures for animals is very expensive for owners, and here as across the Atlantic, it is not reimbursed by Social Security.
The remainder of the annual premiums for dog and cat health insurance are donated by Lemonade to charitable organizations focused on animals.
