Lemonade went reside with its pet insurance coverage product in July 2020, roughly three and a half years in the past.
Lemonade’s Pet Policy Availability
Lemonade’s pet protection is available in 37 states and DC, particularly – Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
Lemonade’s Pet Market Share
According to product filings, the insurer has reached round 203,000 pet policyholders. A major majority, over 50%, are concentrated in three states: California with 28%, New York with 17%, and New Jersey with 8%. Considering the North American Pet Health Insurance Association’s (NAPHIA) report of roughly 4.8 million insured dogs and cats within the US as of 2022, Lemonade holds an approximate market share of 4%. This estimation doesn’t account for the precise variety of multi-pet insurance policies Lemonade could have, which may alter the market share barely. Looking in, Lemonade has just lately reached its 2 millionth buyer, therefore roughly 10% of Lemonade’s general buyer base consists of pet insurance coverage policyholders.
Average Pet Policy Premium
An evaluation of filings throughout 12 states signifies that the common coverage premium stands at $512. Additionally, the filings reveal that these states have filed for and permitted a mean fee hike of 15%.
Average Lemonade Pet Premium by State
Lemonade’s Approved Rate Hikes by State
A evaluation of YTD state filings that contain fee hikes highlights the next:
- Connecticut and Wisconsin present important fee impacts at 23.70% every
- New York and Massachusetts each have a mean premium of $541, however they differ markedly of their fee impacts, with New York at 13.50% and Massachusetts at a better 28.20%
- States like Maryland, Oregon, and North Carolina present a detailed alignment in common premiums ($525, $487, and $473 respectively) with fee impacts starting from 12% to 19.40%
- Pennsylvania, South Carolina, and Georgia have decrease fee impacts (under 10%)
- Nebraska has one of many highest fee impacts at 26.60% but additionally has one of many decrease common premiums at $392
| Filing Date | Effective Date | State | Affected Pet Policies (LMND) | Premium Written | Rate Impact |
|---|---|---|---|---|---|
| Jul 2023 | Oct 2023 | MA | 7,724 | $4,176,033 | 28.2% |
| Jun 2023 | Aug 2023 | NE | 763 | 299,189 | 26.6% |
| Sep 2023 | Sep 2023 | WI | 3,720 | 1,648,650 | 23.7% |
| May 2023 | Jul 2023 | CT | 5,107 | 3,018,817 | 23.7% |
| Jun 2023 | Sep 2023 | NC | 6,348 | 3,004,721 | 19.4% |
| Jul 2023 | Sep 2023 | MD | 7,029 | 3,692,476 | 19.3% |
| Mar 2023 | Nov 2023 | NY | 34,929 | 18,894,060 | 13.5% |
| May 2023 | Jun 2023 | OR | 6,253 | 3,044,642 | 12% |
| Apr 2023 | Jun 2023 | CO | 4,605 | 4,003,593 | 10.65% |
| Jul 2023 | Nov 2023 | GA | 7,971 | 3,030,237 | 9.9% |
| Mar 2023 | May 2023 | PA | 12,224 | 5,607,432 | 9.06% |
| Sep 2023 | Jan 2024 | SC | 1,949 | 883,745 | 8.5% |
Lemonade vs Trupanion
There’s a transparent value differentiation between Trupanion (that’s available nationwide) and Lemonade with Lemonade’s common being $512 and Trupanion’s common being $880 within the states analyzed.
Trupanion’s Approved Rate Hikes by State
| Filing Date | Effective Date | State | Affected Pet Policies (TRUP) | Premium Written | Rate Impact |
|---|---|---|---|---|---|
| Apr 2023 | Aug 2023 | NY | 41,228 | $47,874,529 | 18.35% |
| Mar 2023 | Aug 2023 | SC | 6,469 | 4,143,388 | 16.6% |
| Jul 2023 | Sep 2023 | OR | 14,060 | 12,175,969 | 15% |
| Jun 2023 | Aug 2023 | MD | 10,235 | 10,828,492 | 14.2% |
| Apr 2023 | Aug 2023 | WI | 4,786 | 3,388,055 | 8.9% |
| Nov 2023 | Feb 2024 | CT | 19,034 | 19,485,204 | 12% |
| Apr 2023 | Jun 2023 | PA | 13,332 | 11,371,250 | 12% |
| Sep 2023 | Jan 2024 | GA | 13,131 | 9,050,080 | 11.8% |
| Jul 2023 | Nov 2023 | CO | 18,401 | 19,257,319 | 8.5% |
| Jan 2023 | Jun 2023 | MA | 57,450 | 54,601,950 | 7.7% |
| Feb 2023 | Apr 2023 | NE | 1,901 | 1,311,025 | 6.9% |
Trupanion usually holds a bigger share of pet insurance policies. However, in states corresponding to Pennsylvania and New York, the hole narrows considerably, showcasing a stronger aggressive panorama between the 2 insurers. This is especially important provided that Lemonade has been within the pet insurance coverage marketplace for simply three years, in distinction to Trupanion’s expertise spanning over 20 years.
Chewy
In its 2022 annual letter, Trupanion introduced the launch of a set of 5 merchandise in collaboration with pet retailer Chewy. An examination of product filings from a number of states—together with Colorado, Connecticut, Georgia, Massachusetts, Maryland, North Carolina, Nebraska, Oregon, Pennsylvania, South Carolina, and Wisconsin—reveals a mean pet coverage premium of $224. When extending the evaluation to incorporate all US states the place filings have been available, a barely decrease common premium was noticed.
The high three states by conversion for Trupanion pet insurance policies originating from Chewy are North Carolina, with an estimated 278 insurance policies, adopted by Pennsylvania with roughly 269 insurance policies, and Massachusetts, the place round 226 insurance policies have been reported. Nonetheless, the states with the very best written premiums just lately are Georgia, Colorado, and Pennsylvania, with direct premiums exceeding $81,000, $58,000, and $50,000, respectively.
Coverager Research members can access the breakdown of Trupanion’s insurance policies and premiums written by state and by distribution channel by following this hyperlink and downloading the datasheets.
