Author: Steve Hallo
Original article here.
Insurance company Chubb is expanding its presence in the U.S. pet insurance sector as it agreed to purchase Healthy Paws, a U.S.-based managing general agent specializing in pet insurance, from Aon PLC. Terms of the transaction, which is expected to close in the second quarter, were not disclosed.
While Chubb will become Healthy Paws new parent company, the two organizations have a history. Since 2013, Chubb has served as the exclusive underwriter for the pet insurance brand. The companies' shared histories will help fuel future growth and ensure a seamless transition for employees and policyholders, according to the acquiring firm.
"Chubb has been an important part of our journey for more than a decade and is an ideal partner to enable us to continue our mission on a larger scale and offer even greater value to the pet community," Jon Harris, president and COO of Healthy Paws, said in a release. "There are tremendous opportunities ahead to expand the positive impact we have on pets and pet parents."
Harris will continue to lead the pet insurance business after the acquisition's close, Chubb reported.
According to the North American Pet Health Insurance Association, the U.S. has a pet insurance penetration rate of about 4%. This is considerably lower than other countries, such as the U.K.'s 30% penetration rate or Sweden's 80% rate.
This news follows recent reporting that the U.S. pet insurance sector has steadily grown gross written premium (GWP) 20%-30% annual for the past few years. In 2023, GWP was up 21.6%, while 2022 saw GWP up 24.2%.
The pet insurance sector's premium growth is being driven by an increase in pet adoptions, the evolutions of the pet and human relationship and worry over the increasing cost of veterinary care, according to Kristen Lynch, executive director at North American Pet Health Insurance Association,
Healthy Paws launched in 2009 and currently covers more than half a million dogs and cats in the U.S.