Contact Us

3 Reasons to Add Pet Insurance to Your Product Lineup

author avatar
By The Boost Team on Apr 11, 2023
3 min read
A man is sitting on a park bench trying to work on his laptop, while a black labrador dog interrupts to lick his face.

It’s National Pet Day—a day to celebrate our furry, scaly, and feathered family members. And just like any other member of our family, pets deserve the best care possible. That's why, today, we want to shine a spotlight on an essential aspect of responsible pet ownership—pet insurance.

If you run a business that caters to pet owners, there are three big reasons you should be offering pet insurance to your customers.

Reason #1: Your Customers Need Pet Insurance

Pet insurance is crucial for several reasons. First and foremost, it gives your customers financial protection for unexpected veterinary expenses. Just like humans, pets can experience accidents, injuries, and illnesses that require medical attention, and the costs associated with veterinary care can add up quickly. In 2021 alone, Americans spent over $32B on vet care and related products, and unexpected emergency vet care averages between $800 and $1500 per visit. 

At the same time, in 2022, half of American adults reported having $5000 or less in their savings account and one-third had less than $1000. 33% of American pets need emergency care each year, but up to 75% of American pets are still uninsured. That means that, if a pet needs unexpected vet care, a sizable percentage of Americans might struggle to afford it. Even for well-off pet owners, an emergency vet trip can be a nasty financial surprise. 

Pet insurance can help to offset these expenses, ensuring that your customers can provide the necessary medical care for their pets without breaking the bank. 

Reason #2: Pet Insurance Can Build Substantial Recurring Revenue

Whether you’re a pet-related business or an insurtech catering to consumers, offering pet insurance is a big opportunity to build new or additional recurring revenue streams. 

The pet insurance industry is huge, with over 130 million pets estimated in the U.S. However, despite the large number of pets, most pet owners don’t have insurance, which creates a significant opportunity for pet related companies to get in on this market. The popularity of pet insurance is quickly increasing: gross written premiums for pet insurance in the US have grown by double-digit percentages every year since 2016, and in 2020, the total US volume hit almost $2 billion

The primary opportunity for your business to benefit from pet insurance is through the revenue of regular premiums paid by pet owners. In exchange for financial protection from unexpected medical expenses for their pets, your customers will pay you a regular monthly premium. These regular payments provide a steady, new source of revenue to your company while deepening your customer relationships.

Reason #3: Insurance is Sticky

That leads to the next major incentive: customer retention and experience. A major perk of embedded pet insurance is that it markets to your existing customers. Rather than investing more time and money into new audience acquisition costs, embedded insurance builds a deeper relationship with customers already in your funnel. You’ve already done the hard work of building a positive, trusting relationship with your customers, and this adds a new, beneficial point of engagement with them. 

Embedded insurance creates lifetime customers out of formerly one-time buyers. If you have customers who occasionally buy dog toys or cat food from your website, you can easily offer them pet insurance at checkout. Insurance is a very “sticky” product with an average 84% customer retention rate. Now, instead of just occasionally visiting your website to grab the latest toy, their engagement with your brand will increase because they will be interacting with you every month to make their premium payments. It provides an opportunity for your business to demonstrate even greater service and care that will increase customers’ brand loyalty.

By offering your customers the protection they need for their pets and their wallets, you can create deeper customer relationships and a stronger brand identity while increasing your short and long-term revenue.

If you want to learn more about growing your revenue with embedded pet insurance through Boost, contact us, or dive into building your insurance program with Boost Launchpad.

Previous articles
The top 3 takeaways from our embedded insurance consumer survey
Embedded Insurance Survey Results: What We Learned From Consumers
Feb 3, 2023
You may have heard that embedded insurance is a big opportunity to grow your business, but are your customers actually interested?  We wanted to get the story straight from the source, and so in Q4 2022 Boost surveyed 650+ US consumers. We asked about their experiences with insurance, how they felt about their current insurance options, and what mattered most in their insurance purchases.  Here are the top 3 things that we learned from our consumer insurance survey results. [See Full Size] In our insurance survey, a whopping 73% of consumers had either already bought insurance from a non-insurance brand, or would be interested in doing so. While price was mentioned most often, other reasons included brand loyalty and convenience. Trust was another important factor. 62% of respondents were interested in buying financial products from a trusted brand, rather than a bank. For millennials, the number went up to 95%. First movers might have an advantage here as well. 20% of our respondents had never been offered financial products from a retail brand - but they liked the idea. All this is promising news for companies outside the traditional insurance sphere who are looking to build revenue and customer loyalty with embedded insurance. If you can deliver the product and experience consumers are looking for, the appetite is there. It’s hardly a secret that convenience is crucial to customer experience in the digital age, so it comes as no surprise that it was important to our respondents. 59% told us that they’d be more likely to buy insurance if it were offered digitally, as part of a related transaction. Younger consumers were more likely to be enthusiastic about digital insurance: nearly 70% of respondents aged 18-29 were interested in buying insurance directly through a transaction on a retail website. For half of our respondents, embedded insurance wasn’t a novel idea. 50% had already bought embedded insurance at least once, at the point of sale in a related transaction. For many consumers, insurance is a long-term purchase. 68% of our survey respondents told us they’d had the same insurance provider for at least two years, and 10% had had the same provider for more than five years. For retailers, insurance could also be an overall boost to retention. 62% of respondents said that when a retailer offered protect-your-purchase options, they were more likely to be repeat customers. Learn more about offering embedded insurance in our free guide, or contact us to get started.
Continue Reading
preview image
Get the Guide: Growing Your Revenue with Embedded Pet Insurance
Jan 12, 2022
It’s a great time to get into the pet insurance market. In fact, more than 70% of American households now own at least one pet, and with the rising cost of vet care, those households are more and more likely to insure their pets’ health. For businesses that serve pet owners, offering embedded insurance is a significant opportunity to grow their revenue and deepen relationships with their customers.  At the same time, for most pet-related companies, insurance is a whole new line of business outside their core expertise. The opportunity is there, but it can be hard to know how to get started in the pet insurance market. Partnering with Boost can make it easy to get underway! Download The 2022 Guide to Growing Your Revenue with Embedded Pet Insurance, and learn everything you need to know to get your business started with pet health insurance: Learn how pet health insurance works and what coverages are most commonly available, and explore the use cases that make pet insurance valuable to your customers. Learn which types of businesses have the best opportunity for offering white-label pet insurance, along with what it takes to actually get started (spoiler: less time than you’d think). Learn how to reach your customers with your new insurance offering, using the knowledge you already have about their preferences and buying habits for their pets. The 2022 Guide to Growing Your Revenue with Embedded Pet Insurance is free to download HERE. And as always, if you have any questions about our pet health insurance product or anything else, our team is here to help.
Continue Reading
preview image
Introducing The New Boost Brand
Nov 9, 2022
It’s an exciting day for Boost: today we’re officially launching our new brand identity, and a shiny new website to go along with it. When we started Boost in 2017, we had one big goal: to drive innovation in the insurance industry. The insurance market is highly regulated, inefficient, technologically underdeveloped and traditionally dominated by a handful of large players, who haven’t had much incentive to change with the times. This added up to an environment that made it very difficult for new players to get modern ideas to get off the ground - which is why buying insurance was still a painful, largely offline process, with often-outdated products.  We built Boost to change that. Our mission is to make the insurance industry accessible to innovators by providing the compliance, capital, and technology infrastructure they need to offer modern protection to their customers. We wanted to make it easier for new players to get to market, and to make insurance work better for everyone - the people buying it, and the people offering it. Five years later, it’s been a wild ride. We’ve built an API-based platform that enables any company to offer branded, digital insurance through their website or app, powered by one of the most advanced policy administration systems in the industry. We’ve launched a suite of first-of-their-kind insurance products like parental leave insurance, crypto wallet insurance, and management liability insurance designed for startups, as well as launching improved, more customer-centric versions of established products like business owners insurance for small businesses, cyber insurance and pet health insurance. Since Boost’s inception, we’ve powered more than 40 insurance innovators as they’ve improved the insurance buying process. I couldn’t be more proud of what we’ve accomplished. But we’re nowhere close to finished. Boost’s overall vision for the insurance industry is much bigger than where we are today: we’re building the insurance market for the modern world. Our vision is to democratize the industry through technology and innovation so everyone can have access to the protection they need, when they need it. To tackle that vision, we’ve grown a lot as a company - and it’s time for our brand to grow, too.  The updated Boost brand better reflects who we are now: a bold, modern, tech-forward leader in the insurance space. It allows us to tell our story in a way that’s easier to understand, and gives us room to scale as we continue moving forward. The central element in our new brand identity is one you’ll hear us talk about often - the idea of the platform. Boost delivers more than just robust tech infrastructure, white-labeled insurance products or access to risk capital through our managed reinsurance facility (though we have those too). With Boost, you get an end-to-end platform comprising every layer of the embedded insurance value chain, all in one turnkey solution. The platform is what gives our customers the tools to scale their insurance programs and build long-term, profitable lines of business, and that’s why we made it the cornerstone of our brand. Alongside our new brand identity, we’re also excited to unveil the all-new Boost website. Our new online home isn’t just prettier to look at - it’s also packed with more information about what we offer, and more ways to connect with us.  Boost has come a long way since the beginning, and I look forward to the next steps we take on our journey. Much more to come!
Continue Reading