Evolution of pet insurance

In my second interview with Cameron Clark, the new business executive at P.UMA, Chanelle Fischer, the head of operations, and Mitchell Cousins, the broker liaison, we delved into the fascinating world of pet insurance.

Our discussion highlighted the evolution of pet insurance over the years and the pivotal role played by P.UMA in reshaping the industry. From the early days when the market was dominated by only two players to the current era of customised and comprehensive coverage, we explore the past, present, and future of pet insurance.

The Early Days of Pet Insurance – Chanelle Fischer reminisces about the humble beginnings of pet insurance when P.UMA was first established. At the time, there were only two established players in the market, with PetSure and MediPet leading the way.The market was relatively small, with PetSure boasting around 20,000 pets and MediPet covering approximately 8,000. P.UMA saw an opportunity to expand the market by introducing an accident-only plan, realising that a single insurance product was insufficient for the diverse needs of pet owners.

This pioneering move led to significant changes in the pet insurance landscape, as other providers followed suit, offering similar accident-only plans. Chanelle notes that imitation is the sincerest form of flattery, highlighting the impact P.UMA had on transforming the industry.

Customisation and Individualized Coverage – One of the key challenges in pet insurance is designing products that cater to the specific needs of different breeds and individual pets. Cameron Clark emphasises that P.UMA’s approach is rooted in strong underwriting processes that prioritise individual pet assessment which gives pet owners upfront underwriting T&C’s allowing customers to make an informed decision. Instead of imposing blanket rules based on breed type, P.UMA believes that each pet should be rated individually. Exclusions or waiting periods are determined by a pet’s medical history, ensuring fairness for both pet owners and their beloved animals.

Understanding Pet Insurance Coverage – Cameron further explains how pet insurance works at P.UMA, highlighting the importance of researching sub-limits. Unlike some competitors who set annual limits in conjunction with sub-limits and display them, P.UMA focuses on individual case management, much like the approach used in the medical aid space and this allows them to offer plans with no annual limits and no sub- limits which is unique in the pet space. The team assesses the appropriate costs for specific treatments, works closely with vets to determine fair payouts, and processes claims accordingly.

The Role of Brokers in Pet Insurance – The conversation also sheds light on the essential role of brokers in pet insurance. Brokers serve as intermediaries between pet owners and insurers, guiding clients in selecting the right coverage based on breed, age, and budget. Chanelle emphasises the importance of broker-client interactions, stating that customers who purchase pet insurance through brokers receive personalised advice and options, resulting in a comprehensive product tailored to their needs.

Mitchell Cousins underscores the value of brokers selling pet insurance through an intermediary channel with the support of companies like P.UMA. He warns against the direct channel, where insurers often upsell other products, potentially taking business away from brokers. The emotional connection people have with their pets makes pet insurance an ideal addition to broker conversations about home and content insurance.

The Road Ahead for Pet Insurance – As the pet insurance market continues to grow, there is a need for responsible expansion and public education. Cameron Clark believes that the role of brokers is pivotal in this regard. Brokers can compare different products, offer advice, and help customers understand the nuances of pet insurance, such as sub-limits and annual coverage caps. With the rising costs of veterinary treatments, the importance of pet insurance becomes increasingly evident.

The conversation with P.UMA’s experts highlights the growing potential in the pet insurance industry. They encourage brokers to seize the opportunity, emphasising that pet insurance is not just an emotional sale but also a gateway to offering more value to customers. P.UMA is committed to supporting brokers, providing tools, training, and technology to make the process seamless and educate brokers about their products.

In conclusion, the world of pet insurance has come a long way, with P.UMA at the forefront of transformation and innovation. As pet owners become more aware of the benefits of comprehensive coverage for their beloved animals, the pet insurance industry is poised for further growth.

Brokers stand to play a vital role in ensuring the public’s awareness and understanding of this vital financial protection.