European pet insurance companies have attracted record amounts of funding this year. You might be wondering how much insurance we really need for pets, but venture capitalists say there is still room for newcomers.
European startups selling insurance products for our best canine and feline friends have generated â¬ 328 million in investment this year to date, nearly three times the amount raised last year and representing around 8% of all funding raised by insurance startups. Much of that went to UK pet insurer Bought By Many in June, when it raised $ 350 million. But the overall size of transactions has grown in recent years. In 2020, European pet insurance startups raised â¬ 129 million.
Malin Posern, Passion Capital Partner, Says Given The Rise In The Number Of Pet Owners During The Pandemic And The Growing Range Of Pet Health Care Options, There Are Still Parts market to be won.
âYou can see the dynamic between insurance and medical care for pets. There are many more health services, but these are expensive and this increases the propensity of people to insure their pets, âsays Posern.
The latest to enter the fray is Swedish startup Lassie, which has just raised a â¬ 2 million funding round led by Wolt-investor Inventure with the participation of Passion.
Lassie has its own special twist – a focus on preventative health care and discounts for clients who interact with Lassie’s content. If, for example, you read Lassie’s articles on foods – like chocolate – that are dangerous to dogs, you might get money on your next bounty.
â40% of injuries are based on preventable stomach injuries,â Posern explains. If Lassie can educate his customers he can save big on payments, which is why the focus is on content and community.
It is similar to the change that is happening in human health insurance.
âWe saw a shift to preventative health for humans a few years ago with startups like Yulife, Alan and Vitality in life insurance and in the United States companies like Hims have created large companies. scale focusing on preventive health. Now is the time to take better care of our pets too, âsaid Hedda BÃ¥verud Olsson, CEO of Lassie.
Pet insurance is an area where legacy insurers have struggled, in part because the structure of claims is very different from other markets. Most complaints arise within the first year of an animal’s life.
It’s also a market that lacks precise information – for example, many incumbent insurers will lump dogs of mixed breeds into one category, Posern explains, although the health needs of different mixes of breeds may be. different. This is the kind of data Lassie accumulates in order to give himself an edge in the market – and to make his premium-to-payout ratios healthier, too.
Maija Palmer is Sifted’s innovation writer. She covers deeptech and business innovation, and tweets from @maijapalmer.