Progressive now offers pet insurance, with an eye on selling it by way of an employer-offered voluntary benefit.
The Ohio-based property/casualty insurer said the new product comes through a partnership with Pets Best and will be called Progressive Pet Insurance by Pets Best. Plans are to offer the cover for all U.S. companies seeking to add pet insurance as a voluntary benefit. Pets Best, part of Syncrony-owned CareCredit, will write the actual coverage.
Progressive’s voluntary benefit offering is its latest collaboration with Pets Best pet health insurance. Progressive and Pets Best have worked together since 2009, offering Pets Best pet health insurance plans to dog and cat owners across the U.S. In late 2019, Marsh and Zurich North America debuted a pet insurance program targeted to cats and dogs in the United States.
The market is significant. Progressive, in its announcement notes statistics from the American Pet Product Association noting 85 million U.S. households spend a combined $29.3 billion on veterinary care. Other insurers also see opportunity in the space. Lemonade, a startup focused on the homeowners and renters market, recently launched a new pet health insurance product designed exclusively for cats and dogs.
Drew Purcell, Business Development Leader at Progressive, said in prepared remarks that the insurer made its move with the understanding that employers are seeking more ways to build comprehensive and competitive benefits packages.
“Employees are placing increased importance on work perks that complement their lifestyles and recognize what’s important to them,” Purcell said. “By offering pet insurance as a voluntary benefit, employers can tap into the strong bond that many people have with their pets.”
Employer insurance enrollees seeking to add the new pet coverage can select the amount of coverage that best fits their needs and have access to a free 24/7 Pet Helpline to address any pet wellness questions or concerns. For employers, there is no cost to add the cover as a voluntary benefit. The pet insurance benefit is available to companies of any size and can be added at any time throughout the year. Employers have the option to pay for part or all of the pet insurance, or companies can choose to have their employees pay the premiums directly. Payroll deduction is also available to companies with at least 250 employees.