Aquarium set to reach NAPHIA Summit
Aquarium Software Inc. has today confirmed that following its successful sponsorship of the North American Pet Health Insurance Association (NAPHIA) Summit in 2014, it will this year be lead sponsor when doors open on the 2015 Summit in Hollywood, Florida, from May 26-28.
Aquarium sees the NAPHIA Summit as a stellar opportunity to discuss new pet insurance initiatives stateside, as potential investors are starting to sit up and take serious notice of the sector.
“The NAPHIA Summit is one of the most significant gatherings of North American industry leaders and we are proud to be the Presenting Sponsor of this year’s event,” said Mark Colonnese, VP Sales and Marketing. “Aquarium is already a global business and our assets deployed in the US market reflect that. I am particularly looking forward to hearing what Simon Wheeler from Agria UK has to say in his talk on trends from the UK pet health insurance industry. NAPHIA remains a key plank of our US pet strategy as a consequence, and the growth of our US presence and the industry more generally both serve to further underscore the importance of the Summit.”
Pet insurance growth in the US in 2014 was triple the pace of accident and health coverage and what is a $600 million industry is seeing steady expanding. According to data compiled by NAPHIA, gross written premiums jumped 13% on average from 2009-13, compared to just a 3.5% rise in premiums for personal accident and health policies in the same period. Investors are now getting in on the act. Last year Fairfax bought Pethealth for $88 million, starting a consolidation process with big brands seeking greater recognition and market share. The market is already expected to be worth around $750million by the end of 2015.
Aquarium Software Inc. announced last year an ongoing trans-Atlantic partnership with leading pet insurance brand, Pets Plus Us. With a track record developing systems for UK insurers, Aquarium could offer Pets Plus Us an adaptable platform and cost-effective solution, aimed specifically at the complexities of the pet insurance market.
Spreading this good news will be a hot topic at the NAPHIA summit, because while data mining, anti-fraud and customer journey initiatives have been applied in regular insurance for years, it has not been widely applied to pet insurance - until now.
“There is an argument that pet insurance has been underestimated in terms of its potential both for growth and fraud,” added Mark. “It is becoming clear the product needs treating with the same intellectual rigour and methodology (and the same software) as any other GI line, now that is happening, the industry’s tails are up and investors are starting to prick up their ears. All in all, the NAPHIA Summit 2015 has a lot to talk about.”
“Our work with Pets Plus Us is based on ‘transactional revenues’ or ‘risk sharing’ but call it what you will, they are phrases the sector going to be hearing a lot more of,” added Mark. “Instead of a huge up-front fee and charging per user, the only cost is for volume of policies sold, renewed, or claims processed through the system. This way, our clients keep the vast majority of their capital intact and within their business.”
While not a new concept within GI, the introduction of transactional revenues into the pet insurance market is a revolutionary step in an industry with massive growth potential that is only now being fully appreciated. The pet insurance sector needs to integrate the best traditional insurance practices; with the next generation of pet policy and claims software. Offering intelligent, intuitive and cost effective solutions will be key. Integration with third party suppliers (vets & pharmaceutical) and cross referencing of claims must form the backbone of fraud reduction strategies and enhanced customer journey – all set to get tails wagging in Florida.