It was one year ago this week that we reported the first hints of headwinds for pet insurer Trupanion. It was a seemingly innocuous story about the company’s attempt to improve its online engagement with a social media event that not only failed to improve Trupanion’s web conversion, which is, at this moment, seeing some […]
Seattle-based, “vet-centric” pet insurer Trupanion’s leaders often like to underscore that the company does not participate in “pay to play” marketing tactics. Trupanion’s leaders enjoy talking about ethics, transparency, and more transparency. For the second year in a row, the company has decided to market itself to the veterinary profession, one of the most educated, […]
Trupanion’s pet food venture Landspath involved millions of dollars in start-up costs (insiders estimate total amount spent is north of $15 million), and the engagement of full-time senior staff, including company president Margi Tooth. A key building block of Trupanion’s five-year plan which CEO Rawlings unveiled in April 2021, the pet food venture was ambitious […]
Trupanion launched a redesign of its website nearly two weeks ago, and it is not going well. Here’s a screen recording of Emily attempting to obtain quotes. Watch as the screen fades to white–and , then, nothing. Trupanion President Margi Tooth and CEO and founder Darryl Rawlings did not return our repeated requests seeking comment about […]
Trupanion’s complaint asserts:
“As of January 1, 2023-the effective date of the Maine Pet Insurance Act-the Bureau of Insurance has prohibited Trupanion and other pet insurance companies from deferring the effective date of policies issued in Maine. As a result, to avoid the anti-selection effect of certain consumers using the prohibition on waiting periods to obtain coverage for accidents that already occurred, Trupanion is requiring that consumers must have their pet examined by a veterinarian before the policy takes effect. Other insurers have largely pulled out of the market in Maine altogether including Nationwide, which along with Trupanion constitutes half the market share of the industry.”
With many more states set to enact similar laws starting January 1, 2024, this will inevitably draw attention to EDO’s. And, so, Maine seems to be the tip of an iceberg, with a larger battle looming for Trupanion, which would challenge the entire business model itself as more states pass similar legislation banning waiting periods and put Trupanion into an EDO-only revenue model, thereby putting the spotlight on the EDO and — its legality.
If territory partners (independently contracted local sales agents critical to Trupanion’s vet-centric business model) need to be licensed just to visit vet hospitals and educate vet professionals about pet insurance, how does Trupanion explain a system of relying upon vet hospital staff to introduce Trupanion and educate consumers about the EDO without being licensed?
It’s taking a little bit of liberty. It’s a bit of an exaggeration on their part….It’s more that they just submitted these rates to us, and we are aware of them.” – NYDFS official
NYDFS: NY ‘Approval’ Claim Not True
“The department does not technically have the authority to approve [pet insurance rates]… These rates are just submitted to us. We do not have the authority to review them prior to publishing,” an official at New York’s Department of Financial Services told TCR.
When asked if Trupanion’s statement about NYDFS approving an 18% rate increase was accurate, the official said, “It’s taking a little bit of liberty. It’s a bit of an exaggeration on their part….It’s more that they just submitted these rates to us, and we are aware of them.”
By email, the official confirmed, “the Department still retains the authority to object to aspects of the rate filing,” she wrote, referring to Trupanion’s filing.
TCR has included redacted written exchanges with New York DFS et al. after the conclusion of our reporting.
The total dollar amount Trupanion, Inc. is now estimated to have spent on the pet insurer’s joint pet food venture with Rayne Clinical Nutrition, Inc. is believed to be north of $15 million dollars, according to current employees. We’ve been unable to get a number from any person at Trupanion willing to go on the […]
Reporter’s Notebook Here’s an excerpt from the first email I wrote to Trupanion founder and CEO Darryl Rawlings on May 7, 2021 [see below] following a corporate event during which the company’s leaders made themselves available for extensive, live q&A from investors — and, notably, from the press. After questioning the company’s leaders about the […]
Trupanion remains the only company I’ve covered whose founder and CEO will engage reporters on this level. Next week, TCR will be on the ground in Seattle for the company’s annual meeting to shine more light into how Mr. Rawlings and his team are thinking about Trupanion and the future of the company. Interview transcript […]
Veterinary professionals are underpaid, overworked, and in short supply. So, a reliable website where veterinarians can direct their demanding clients with pet insurance questions is one less headache, right? That’s a simplified version of the idea being pushed by Pawlicy Advisor, the company whose website “guarantees” veterinarians and pet owners that they are “100% devoted […]