Over the last 10 years, Trupanion's USA insurer, American Pet Insurance Company (APIC), has introduced seven rate increases in order to adjust premiums to share the risk equally and fairly among all policyholders. Not one penny of those rate changes has been used to pay administration costs or overhead. In fact, Trupanion’s administrative costs and overhead have decreased as a percentage of premiums year over year, allowing the company to be more efficient and able to offer the lowest cost of premium based on 90% coverage for eligible expenses with no limit.
How does this impact you as a customer?
Insurance offers financial security that a savings account can’t match. As a pet owner, you just never know when your pet will get sick. We’re here for 90% coverage of eligible expenses with no limit regardless of how much you have paid in premiums.
How Trupanion’s medical insurance for pets is different from the competition
Trupanion allows policyholders to be liberal with veterinary care since our insurance reimburses 90% of the actual costs of covered veterinary care with no limits on payout. Trupanion policies allow pet owners to see any vet they choose with no pet insurance benefit fee schedules or "usual and customary" payouts. Instead of operating from a set schedule or payout amount, Trupanion's insurer, American Pet Insurance Company (USA), chooses to price insurance premiums to be able to cover 90%* of covered costs with no limit, no matter where the pet goes for care or how much the total bill costs.
“We understand that as veterinary medicine advances, there will be newer and more expensive ways to treat pets so pet owners are able to keep their pets happy and healthy longer. We do not want to tell a policyholder that they have to treat their pet with outdated medicine because we don’t want to pay for the new, better way of doing things.”
-Darryl Rawlings, Chief Executive Officer
How we price
When Trupanion started over 10 years ago in Canada, and medical insurance for cats and dogs was new to North America, American Pet Insurance Company had two categories by which it priced – species (cat vs. dog) and age at enrollment. As veterinary medicine advances and more information is known about the cost of care, adjustments are consistently made to ensure all premiums are fair. Today, Trupanion's insurer, American Pet Insurance Company (USA), not only prices based on species and age, but also location, breed, gender, deductible amount, and spay/neuter status.*
Trupanion company values
There are two values Trupanion has always operated under. First, there are no penalties to the pet owner for making claims. Other types of insurance, such as car insurance, charge more for making claims. However, since pet owners have no control whether their pets get sick or injured, Trupanion does not believe in penalizing pet owners if they make claims.
Second, Trupanion's insurer, APIC, will not increase premiums due to the pet aging. As anyone enrolling a puppy is a “like risk,” APIC spreads that risk over all policyholders enrolling puppies for an average of 14 years. Spreading risk over this longer time period, compared to an older pet, allows APIC to keep premiums lower. So rates are lower for puppies, despite younger pets having the highest frequency of claims. Also, even with veterinary inflation, pet owners who enroll their pets as puppies or kittens will always pay significantly less than if they originally enrolled their pet at an older age.
Instead of dictating what is best for pet owners, Trupanion allows pet owners to determine with their veterinarian what is the best option for their pet.
The cost of insurance is directly related to the cost of providing the best policy on the market. As the cost of care increases, the cost of insurance will, too. APIC's goal is to price its product fairly. “The price may change, but the value is the same,” said Rawlings.