Value Proposition

  • Simply put, the value of any insurance policy is the percentage of premiums that are paid back in claims. This amount has increased every year for Trupanion – which highlights the exceptional value of our insurance coverage.
  • Currently we pay out more of our premiums relative to claims cost than any other pet insurance company.
  • Average in the pet insurance industry is 52-55%
  • We have had 7 rate increases over the last 10 years, and not one penny of those rate changes has been used to pay administration costs or overhead
    • In fact, all administrative costs and overhead have decreased as a percentage of your premium year over year, we’re becoming more efficient and this helps us offer the lowest cost of premium based on our generous benefits of 90% with no limit
    • We hold our target profit margin flat, this means that our earnings go into our product, not into our pockets

Our Goal

  • The price you pay is dependent on a number of elements – such as the age of your pet, its breed, gender, and location. With Trupanion, we do our best to make sure we can pay as much as we can to support you and your pet. A significant amount of premiums we receive are paid out in this way.
  • We hope and we know you do too, that your pet is lucky and you have very few if any claims, which means your pet is helping to subsidize other unlucky pets

Did you know we are filed to pay out more than 70 cents on the dollar?

What does this mean?

  • For the average pet, if you put 70 cents on the dollar in a cookie jar, at the end of your pet’s life, your cookie jar would be empty.  Insurance offers financial security that a savings account can’t match.

Why is this helpful?

  • As a pet owner you don’t know when your pet will get sick.  You may not have a full cookie jar to work with.  We’re here for 90% with no limit regardless of how much has been collected in premiums.

Did you know we are not in the cost containment business?

  • For example, we won’t tell you what vet to go to
  • We will not use a benefit fee schedule
  • We will not use “usual and customary”

What does this mean?

  • Because we don’t operate of off a set schedule or amount we’ll pay, we must price the insurance premiums to be able to cover 90% with no limit no matter where the pet goes for care or how much the total bill costs.
  • Our job is to price the product fairly to you. We take into account a great array of factors when determining the cost of your pet insurance premium to make sure the price you pay is right for you and your pet.

How We Price Fairly

When we started over 10 years ago, and pet insurance was new to North America, we had two categories by which we priced

  1. Species (Cat vs. Dog)
  2. Age at Enrollment

As veterinary medicine continues to advance and more information becomes available about the cost of care, adjustments are made based on breed and geographic location to ensure all premiums are fair.

Two values that we have always had:

1. We will not penalize you for making claims

  • Other types of insurance such as car insurance do charge more for having claims (ie, driving into telephone poles)
  • We think that works for car insurance, because you are the bad driver, but in pet insurance, we believe it is out of your control whether your pet gets sick or injured, so you should not be penalized

2. We will not increase your premiums due to pet aging

  • We realize that if you enroll a puppy, your pet will get older
  • As anyone enrolling a puppy is a “like risk,” we spread that risk over all policy holders enrolling puppies for an average of 13 years
    • Spreading risk over this longer time period, compared to a older pet, allows us to keep premiums lower
    • Rates are lower for puppies, despite younger pets having the highest frequency of claims

How Deductibles Operate

  • The reason we use a deductible in insurance, is to limit risk to an individual pet owner
  • These pet owners have different thresholds for what they can afford

1. For example, a rich lawyer may have $800 in his cookie jar and he is only concerned about unexpected medical costs to his pet that are greater than $800

2. Whereas, Mrs. Smith down the street, a senior living on a fixed income, is unable to afford any unexpected costs and needs to have $0 deductible

3. Instead of dictating what is best for pet owners, we allow pet owners to pick their own price