Embrace Pet Insurance Blog

What makes a good pet-related website?

Occasionally, I get some interesting products and services across my desk - well, not literally across my desk but you can send chocolates if you like :)

If you've been poking around the pet world for a while, you'll know that there aren't that many well-designed pet-related websites. Most are OK but pretty well all of them could do much better and the experience could be so much more positive.

For example, I bet you if you look at this summary of web design mistakes, you could find at least one of these issues with most sites out there. Just think how much more than the $40 billion or so we spend on pets we'd lay out every year if that were the case.

So, I was interested to come across Sniff Design Studio, a Walnut Creek, CA website design firm that specifically focuses on pets and other animals. They do everything from logos, marketing collateral, and of course, web design. The logos and web page are a sample of the work they do.

I did a bit more research online and found an article about Monica Cevallos who is behind Sniff Design Studio. I'm not sure how long that link will last so here's the text...

"Monica Cevallos is barking up the right tree. After graduating from art school and working a number of odd office jobs, she decided to take a chance and open her own niche marketing design studio. Cevallos, under the appropriate moniker Sniff Design, caters to the booming pet industry. She found her first and fastest-growing client, Annabelle’s Doggie Treats, on the all-powerful Craigslist website. Annabelle’s owner Nicole Cottini, who started baking the line of gourmet dog biscuits in her San Francisco kitchen, was in need of a logo to stamp on her brown paper doggie bags for local pet shops. Now, in less than two years, Sniff is helping to relaunch the entire line of treats for national distribution at retail stores like Pet Food Express."

This is a great example of sticking to your niche. How would you change your website if you had someone talented to do it for you?

Consumer Reports on Pet Insurance: not up to CR's usual standards

I'm generally a fan of Consumer Reports. I love the idea of an independent organization testing out every product and service known to mankind and diligently reporting back on its assessment of the facts so that I don't have to wonder whether I picked the right airline for summer travel or the appropriate deck stain for my dilapidated deck. Life is easy with Consumer Reports in hand.

So, when I heard that the esteemed magazine had an article on pet insurance in their July 2007 edition, I ran to their website to see what facts and truths they had come up with about pet insurance.

I imagined a secret army of intrepid testers all buying policies for their beloved cats and dogs from every company (who was our secret shopper, I wondered?) and unbeknownst to us, we would have received mystery calls to our Customer Care Embracers measuring our hours, effectiveness, and knowledge. Perhaps they might have caused some sort of hiccup with their billing to see what our response time would be, and maybe they sent in the same claim to each company to test our service times, what was paid out, and so on. After all, that's what Consumer Reports is famous for - isn't it? Thoroughness, accuracy, unbiased reporting?

So I was sorely disappointed to find the article is a very cursory look at pet insurance, cobbling together a few incorrect facts and assumptions by someone who had read a few articles on the topic, looked at one pet insurer's product, and had already decided pet insurance "is usually a dog". It was as if Consumer Reports had assigned a vegan to test chicken pots pies. It's just not going to be the same as if the NY Times food critic did the review, is it?

So, let me add my comments on the article. Maybe we'll get them to come back for a real look at pet insurance? [My comments are in italicized square parenthesis]

Why pet insurance is usually a dog [groan]

If the recent pet-food scare is tempting you to buy insurance for Fifi or Fido, hold on. Even though many policies cover tainted food, most exclude pre-existing conditions. [Is this unreasonable? You wouldn't expect to be able to buy auto insurance for the car after you've had an accident, would you?] And hereditary or congenital problems. [now I agree, this has been a problem with pet insurance in the past. But Embrace Pet Insurance covers hereditary and congenital problems as long as you don't know your pet has them when you first buy the insurance, and there are two other companies that offer this coverage too] And ailments that strike during the first month of coverage. [this is true for illnesses for PetCare, the pet insurance brand mentioned in the article below. Most other insurers have shorter waiting periods. Our waiting periods are 2 days for accidents and 14 days for illnesses] And oh, yes, some insurers restrict coverage for older pets. [I'm not sure what exactly this means really but there are some insurers that automatically reduce coverage at older ages. We don't.]

But such limits didn’t stop the pet-insurance industry from selling an estimated $230 million in policies in 2006, a figure projected to grow by 24 percent this year, according to Packaged Facts, a market-research company. [this figure is based on a projection made in mid-2005, which turned out to be overstated because of the mis-reporting of the largest pet insurer. The true number is closer to $170 million. And while that might seem like a big number, consider that prepaid legal premiums are approximately $1.4 billion a year, give or take a few hundred million, and that travel insurance is over $1 billion a year (see sources below). But I digress. I think the implication of this statement is that somehow, us evil pet insurers have forced this insurance on the unsuspecting public - because we all can you know. Sigh...]

There are at least a dozen brands of pet insurance in the U.S., selling several levels of coverage [yes, there are a dozen brands of pet insurance but they sell hundreds of levels of coverage - we have over 108 variations ourselves for any particular cat or dog living in a specific area - and over 12,000 price points. But who is counting?]. Accident insurance, usually with a provision for tainted food, is typically part of a policy [this coverage limitation is specific to PetCare but PetCare is the only company that excludes tainted food in its policy in the US as far as I'm aware]. Cover­age for checkups, shots, and certain breeds costs extra [that's generally true although there is one company where routine care is included automatically in their insurance. Keeping it separate is a good idea because some people would rather not have an insurance company cover something that they themselves can budget for - it's more expensive to have it wrapped in the insurance].

Most insurer Web sites give you price quotes instantly, but whether the price is worth paying is harder to gauge. If you buy PetCare’s QuickCare Gold policy for, say, a bearded collie puppy, you’ll pay $49 a month. If the pup needs $3,000 toward treating a spinal problem the next year, you’ll be glad you bought insurance: You’ll owe a $100 deductible, after which the company pays 100 percent, up to $3,000. Not a bad deal, because you will have paid about $600 in premiums. But if the problem occurs after the dog turns 8, the plan pays only 80 percent, and you’ll be out more than $4,000 in premiums paid during those eight years. [this is the key statement of this article but this is not why you buy pet insurance! Pet insurance moves the financial impact of a large vet bill from financially limited pet parents to the financially stable insurer in exchange for a regular premium - aren't you glad your pet doesn't get sick seriously enough to have a $3,000 bill until she's 8 years old? Of course! Are you hoping to have a big claim on your insurance policy sooner than later? Of course not! But your insurance is there if the unexpected happens.]

CR’s take. Checkup costs alone don’t justify insurance. Instead, factor them into your budget. [I think that's a fair statement. Routine care costs are predictable and known each year so you are better off taking that charge yourself than paying an insurer more to do so] Annual surgical vet visits cost, on average, $453 per dog and $363 per cat, says the American Pet Products Manufacturers Association. [the APPMA's numbers include a large number of spay/neuter surgeries, which skew the numbers lower than an unexpected surgery would cost.] If your pet is older and more likely to need extra treatment, [..and hasn't already had the usual aging illnesses that would now be excluded and perhaps a couple of other unexpected events that are also excluded... My point is that you shouldn't wait until after your first accident or illness to realize you should have had pet insurance] and you can find an accident-and-illness policy that costs less than those amounts, consider it. [If life were all about averages, we'd know what the average lotto numbers are (whoopee, we're rich!), the average number of kids we'd all have (I have 1.86 children, don't you?), and the average age we'd live to (I'm pegged for 78.0 - thank goodness it keeps going up every year). But we know real life is not about averages, it's about the outlying events that happen to us and their consequences. Could you afford a large vet bill if you should face one?] If not, put the amount you’d pay in premiums into an interest-bearing fund. [Because we all know that Fifi and Fido will wait until you've saved up enough to pay for their care. And they'll be sure not to do it again until you've saved up some more - not!]

'Nuff said.

Numbers Sources

Pre-Paid Legal: approximately 8 million people/businesses have prepaid legal insurance in the USA according to Marcia Messett, the national sales director for Hyatt Legal Plans, the largest provider in the United States for corporate prepaid legal service (quoted in this Feb 12 2007 article). Assume an average premium of $15 a month ($25 seems to be about the lowest I could find and it can go much higher but we'll assume an even lower premium just to be sure), that adds up to $1.44 billion a year. The give or take a few hundred million assumes that some of those numbers are not 100% correct but you get the idea.

Travel insurance: over $1 billion spent on travel insurance in 2004 according to the US Travel Insurance Association

Embrace Introduces New, "No Surprises" Pet Insurance. Custom, Flexible Pet Insurance Policies Address Increasingly Large Vet Bills and Help Pet Owners Take Steps to Avoid a Nasty Financial Surprise

Check out our Press Release from this morning.

MAYFIELD VILLAGE, OH--(Marketwire - June 4, 2007) - Incredible advances in veterinary medicine and higher expectations of veterinarians by doting 'pet parents' have spawned new treatments for pet diseases and injuries that might have previously been fatal. But they can cost thousands of dollars. As a result, millions of dog and cat owners often face a horrible dilemma: either struggle to pay a huge vet bill or reluctantly euthanize a loved pet.

"Nowadays, responsible pet parents must have a financial plan that avoids the possibility of a pet health decision that is contingent on family finances," says Laura Bennett, a leading pet life and health actuary. She is launching Embrace Pet Insurance to offer pet owners an affordable, practical and, above all, uncomplicated solution to a growing problem. "It's not uncommon to see a vet bill run into several thousand dollars -- but how many pet owners can write a check that large?"

Taking the guesswork out of pet insurance

Bennett and co-founder Alex Krooglik spent months surveying and talking with pet owners to better understand what they wanted from a pet insurance plan. Based on this customer research, they designed Embrace Pet Insurance to address some key failings of today's pet insurance plans.

The biggest complaint they heard from pet owners is that pet insurance plans often do not reimburse the amount people expected. This is because some plans pay claims based on a fixed 'benefit schedule' that limits payouts. Bennett and Krooglik decided that pet owners should be reimbursed a larger portion of their expenses, and designed policies that reimburse based on actual vet bills.

Another common complaint: some pet insurance plans are ambiguous about their coverage of genetic and congenital conditions, and deny claims that pet owners expect to be covered. Embrace listened and included coverage for genetic conditions, including cancer, into all of its plans.

Bennett and Krooglik also heard that some insurance plans define an illness diagnosed once coverage has begun as a 'pre-existing condition' in subsequent years, and therefore excluded ongoing treatment for recurring or chronic conditions. Embrace Pet Insurance lets pet owners choose whether they want this coverage for chronic conditions.

"What we offer is pet healthcare insurance that functions more like human health insurance, and that gives pet owners what they expect from insurance -- reliable coverage that pays," says Bennett. "And we make it very easy for people to specify an insurance plan that meets their needs and fits their budget."

Pet insurance 'a la carte'

Embrace lets pet owners build a custom pet insurance policy tailored to their budget. The pet owner specifies maximum cash outlay, deductible, co-pay, and optional coverage. In total, there are potentially thousands of different combinations but the beauty of the Embrace approach is that everything is packaged into an easy-to-use process that requires less than 60 seconds to get a quote, and only a few more to buy a policy. The application is completed online, the policy is clearly explained, and then delivered via e-mail just seconds after purchase.

Norma Jean Kern of Hickory, North Carolina, has owned several Akitas over the years, and recently experienced firsthand how a freak accident can lead to major vet expenses. "Our dog, Storm, was attacked by the neighbor's dog, which managed to dig under our fence, bite him, and then wouldn't let go. Storm suffered severe leg injuries," she recalls. "We rushed him to the vet. For a while it wasn't certain he would survive, but he made it. Now, six months and many vet visits later, he's back to his normal enthusiastic self."

Storm's treatment required several surgeries, a special brace, and a custom walking cast. The vet bill was over $3,000. "After seeing huge vet bills with other pets, I signed Storm up for insurance shortly after we got him. Embrace has paid all my vet bills, without any hassle. In fact, they even called me every now and then to check on his progress. I wish all health insurance -- human included -- took this approach."

About Embrace Pet Insurance

Embrace Pet Insurance Agency LLC is a specialist insurance agency headquartered in Mayfield Village, a suburb of Cleveland, Ohio. Embrace was founded by Laura Bennett and Alex Krooglik, pet parents who also happen to be insurance experts, and offers self-serve, customizable pet health insurance for dogs and cats. All policies are underwritten by certain underwriters of Lloyd's of London. Embrace is based on core principles of taking an open and honest approach with its customers that is captured in its Customer Bill of Rights. On the web at www.embracepetinsurance.com and at http://blog.embracepetinsurance.com.

Pet Summary: online health records and health tag

As part of our search to find like minded pet businesses to partner up with, we came across Pet Summary and immediately liked the company's style and attitude.

Cole, one of the co-founders, writes a blog and has spent a lot of time thinking about the meaning of pets in our lives and how to have their medical information at hand in case of emergency. He tells the story here of how his grandmother's medical information prompted him to start Pet Summary, and the rest, as they say, is history.

If you are looking for an alternative to microchipping your pet or even in addition to microchipping, there are some interesting services offered by Pet Summary.

First, you can store your pet's health information online, which is a free benefit that allows you to print a health summary card for your wallet in case of emergency (so you don't have to remember what vaccinations your cat has had at the emergency clinic or what special medications she's on). You can also store info such as emergency contact information, treatment authorizations, and so on.

The second benefit is where the value to a lost pet is, which is the Guardian Pet Tag ($15 per pet). This is a new twist on the old ID tag that includes the pet's unique Guardian Code. When someone who has found your lost pet enters the Guardian Code into www.PetSummary.com, they can see as much or as little information as you would like to provide them (such as the treatment authorization and a list of emergency contacts you input above). Here is an example.

Congrats to Cole and the gang for honing Pet Summary's business model and giving pet parents a central location for vital information for emergencies.