Lemonade Launches a New Pet Health Insurance Offering Designed for Puppies and Kittens

Rhea-AI Summary

Lemonade has launched a new preventative care package for puppies and kittens under two years old, addressing the rising pet adoption trend in the U.S. Approximately 70% of U.S. households now own a pet. This new offering includes essential services such as spaying/neutering, microchipping, flea medication, and vaccines. The pet health insurance market, valued at $2 billion, has primarily focused on accident and illness coverage, making Lemonade's preventative approach appealing. The package is available in 33 states and aims to promote early veterinary visits for better pet health.

Positive

• Launch of a new preventative care package for puppies and kittens addressing rising pet adoption.
• Comprehensive coverage including spay/neuter, microchipping, flea medication, and up to six vaccines.
• $2 billion pet health insurance market has little focus on preventative care, creating a unique offering.
• Available for new customers and upon renewal for existing customers in 33 states.

Negative

• Lemonade has a history of losses and may not achieve or maintain profitability in the future.
• Risks of regulatory scrutiny and compliance costs could impact operational effectiveness.
• The brand may struggle to achieve recognition compared to established competitors.

 The insurance company powered by tech launches a new preventative care package for dogs and cats under two years old

NEW YORK--(BUSINESS WIRE)-- Lemonade, the insurance company powered by AI and driven by social good, announced a new addition to Lemonade Pet, its pet health insurance product with super fast everything. Today, Lemonade Pet launched a new preventative care package designed specifically for the youngest furry family members: puppies and kittens under two years old.

Pet adoption is on the rise, with approximately 70% of US households that have a pet, according to the American Pet Products Association’s 2021-2022 survey, up from 67% in their 2019-2020 survey. Furthermore, one in four pet parents surveyed in May 2021 said they’re “worried about being able to afford vet care” (source: ASPCA).

“In the year since we launched Lemonade Pet, we continued to expand our product, and today, we’re bringing it to pet parents of young cats and dogs,” said Shai Wininger, Lemonade CEO and cofounder. “With the pandemic-driven surge in pet adoption, it became even more obvious Lemonade should offer these pet parents peace of mind around the healthcare of their puppies and kittens.”

The new package offers coverage for important procedures like spay and neuter, microchipping, flea medication, and up to six vaccines or boosters. The $2 billion US pet health insurance industry tends to focus on coverage for accidents and illness, rather than preventative care for young pets, making Lemonade’s new package especially appealing for parents of young pets.

“Lemonade’s new offering showcases a commitment to provide pets with quality health care by making preventative care more affordable,” said Dr. Stephanie Liff, Lemonade’s vet health expert. “Offering a preventative care package for puppies and kittens transforms the way pet parents think about going to the vet. Instead of rushing over when something bad happens, or as the dog or cat grows old, people should bring pets in when they’re young, to keep them healthy as they mature.”

The package is available for new Lemonade Pet customers in 33 states across the US, and for existing Lemonade Pet customers upon their policy’s renewal. Interested pet parents can enroll here.

About Lemonade

Lemonade offers renters, homeowners, pet, and life insurance. Powered by artificial intelligence and driven by social good, Lemonade’s full stack insurance carriers in the US and the EU replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available in the United States, Germany, the Netherlands, and France, and continues to expand globally.

Follow @lemonade_inc on Twitter for updates.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding the anticipated success of our new pet health insurance offering. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our history of losses and the fact that we may not achieve or maintain profitability in the future; our ability to retain and expand our customer base; the fact that the “Lemonade” brand may not become as widely known as incumbents’ brands or the brand may become tarnished; the denial of claims or our failure to accurately and timely pay claims; our ability to attain greater value from each user; the novelty of our business model and its unpredictable efficacy and susceptibility to unintended consequences; the possibility that we could be forced to modify or eliminate our Giveback, which could undermine our business model; the results of examinations by our primary state insurance regulator that could result in adverse examinations findings and necessitate remedial actions or give rise to regulatory orders requiring remedial, injunctive, or other corrective action; our limited operating history; our ability to manage our growth effectively; the impact of intense competition in the segments of the insurance industry in which we operate on our ability to attain or increase profitability; the unavailability of reinsurance at current levels and prices, which could limit our ability to write new business; our ability to renew reinsurance contracts on comparable duration and terms to those currently in effect; our exposure to counterparty risks as a result of reinsurance; the loss of personal customer information, damage to our reputation and brand, or harm to our business and operating results as a result of security incidents or real or perceived errors, failures or bugs in our systems, website or app; our actual or perceived failure to protect customer information and other data, respect customers’ privacy, or comply with data privacy and security laws and regulations; our ability to comply with extensive insurance industry regulations and the need to incur additional costs or devote additional resources to comply with changes to existing regulations; our exposure to additional regulatory requirements specific to other vertical markets that we enter or have entered, including auto, pet and life insurance, and the need to devote additional resources to comply with these regulations; and our inability to predict the lasting impacts of COVID-19 to our business in particular, and the global economy generally. These and other important factors, discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the period ended December 30, 2020 and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210913005160/en/

Lisa Horton

Lemonade@astrskpr.com

Source: Lemonade

FAQ

What new product did Lemonade launch for pets?

Lemonade launched a new preventative care package for puppies and kittens under two years old.

How many states is the new Lemonade pet package available in?

The new package is available in 33 states across the U.S.

What does the new preventative care package cover?

It covers spay/neuter, microchipping, flea medication, and up to six vaccines.

What market trend does Lemonade's new offering respond to?

It responds to the increase in pet adoption, with 70% of U.S. households now owning a pet.

What is the estimated size of the pet health insurance market?

The U.S. pet health insurance market is valued at approximately $2 billion.