Insurtech carrier Lemonade plans to debut pet insurance later this year.

Lemonade says it hopes to launch the pet insurance product within a few months, pending regulatory approval. It has opened its site to early registrations.

The digital insurer, which now sells homeowners and renters policies, said its new product will be designed exclusively for cats and dogs and will be based on the same principles as the company’s other products: a hassle-free digital experience for buyers, fast claim payments and a donation of leftover premium to charitable causes chosen by customers.

Shai Wininger, Lemonade’s chief operating officer and co-founder, said the new coverage is designed to be affordable and accessible. He added that many at the company, including himself, “are devoted pet parents.”

His company is not alone in trying to turn its devotion to pets into profits.

In December, MetLife agreed to acquire PetFirst Healthcare, a pet insurance program administrator that distributes through animal welfare agencies, direct-to-consumer channels and employers. Last April, Program specialist NSM Insurance Group acquired Embrace Pet Insurance, a Cleveland-based national provider of pet health insurance for dogs and cats.

Pet Insurance Market Profile North America’s pet health insurance sector reached milestone, with total premium volume in North America reaching $1.42 billion by the end of 2018, according to the North American Pet Health Insurance Association (NAPHIA). Industry data also showed that 2.43 million pets were insured in North America over the same period. In 2018, the U.S. saw an increase of 18% to 2.16 million pets. In Canada growth of 10.9% resulted in 277,000 pets insured in 2018. The organization’s annual report is compiled by Willis Towers Watson. NAPHIA Executive Director Kristen Lynch said that an increasingly significant portion of pet insurance policies in force – 93% – are for accident and illness coverage. In the U.S. this figure is higher, representing 98% of coverage. Other 2018 Industry Figures: In the U.S. the average accident and illness premium for dogs was $566 or $47/month

the average accident and illness premium for cats was $354 or $29.50/month In Canada the average accident and illness premium for dogs was $734 or $61/month

the average accident and illness premium for cats was $400 or $33/month Source: NAPHIA

According to the North American Pet Health Insurance Association, the pet insurance marketplace has more than 12 companies, including many that also market or underwrite multiple white label or co-branded products. The organization says pet insurance is a $1.42 billion market.

Rick Faucher, president of NAPHIA’s board of directors, and president of the Pet Health Division for The IHC Group, notes that the industry continues to see tremendous growth and interest. “Beyond what our industry data tells us, there are many other indicators that pet health insurance is a robust line of insurance,” said Faucher in recent remarks. “There have been several acquisitions of pet insurance companies this year, and we’re seeing a number of new market entrants.”

Lemonade currently sells its homeowners and renters insurance in more than 25 states. It has also started offering contents and liability insurance in Germany.

Last April, Lemonade reported a $300 million Series D funding round led by SoftBank Group with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.

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