Bright Idea: Reigning Cats and Dogs

After selling his cigar-importing business for half a million dollars in 1999, Darryl Rawlings used the money to found Trupanion, originally called Vetinsurance, in Canada. Trupanion expanded to the United States in 2007 and claims to be the only exclusive pet insurance company in the world. It offers health coverage for cats and dogs in the United States, Canada and Puerto Rico, providing one simple plan that covers 90 percent of a veterinarians invoice. Deductibles can vary between $0 and $1,000; the higher the deductible, the lower the premium. There are no limits and customers can choose their veterinarians. The plan covers accidents, illnesses, diagnostic testing, surgeries, medications and lab work.

Rawlings says it took 15 years to determine the pricing plan, which has more than 600,000 categories depending on a pets breed, the cost of veterinary care in a particular region right down to the zip code and the age of the pet at enrollment.

The pricing model allows Trupanion to cover accidents and illnesses certain breeds are prone to. For example, Great Danes suffer from a hereditary condition called Wobbler Syndrome, in which malformed or diseased vertebrae cause an unsteady gait. Rawlings says other companies either wont cover the condition or will seriously limit their coverage.

Trupanion, now headquartered in Ballard, eyes expansion into countries with similar urban markets and pet owners, such as Russia, Japan and Brazil, where the biggest challenge will be sorting out regulatory issues and acquiring actuarial data. Seems like a shrewd move: In the United States alone, the pet insurance market is expected to grow from $210 million to $800 million annually in the next five years.

Trupanion maintains close relationships with veterinarians and pet shelters. It offers a program that insures shelter pets, with no upfront cost, for 30 days. This gives prospective pet owners the confidence to adopt without worrying about pre-existing injuries or illnesses. The Seattle Humane Society was the first to join the program.

The company reinforces its mission through a pet-centered corporate culture. An estimated 80 to 90 cats and dogs accompany their owners to work every day at the Ballard office, where a team of four full-time dog walkers keeps pets actively engaged. Rawlings believes having pets in the office creates a healthy, positive work environment and reminds employees of the importance of their jobs. When youre in a meeting with 10 people about a hotly debated subject and a dog rolls over and yawns,” says Rawlings, “it all changes.