If you were asked which type of insurance was best suited for word-of-mouth marketing, then answering pet insurance would be a pretty good bet. That’s because pet ownership tends to be a social activity, both offline, such as walking a dog in the park with other dog owners or attending animal shows, and online, from posting pictures of your prized Persian cat on Instagram, to participating in forums to ask advice as to how best to look after more exotic pets like salamanders or snakes.
And with an estimated 500 million families globally owning a pet, a third of whom own a dog and a quarter of whom own a cat, the market is huge, with the US leading the way where an incredible 66% of households reportedly have a pet. Also increasingly, research shows that owners tend to increasingly identify pets as family members, with over half of respondents to research from Minitel that do so also confirming having taken out pet insurance. And reportedly, in the United Kingdom, almost half of respondents claim they would be willing to go into debt to pay medical expenses for a pet. Finally, with super-connected generations such as Millennials and Gen Z representing a growing constituency of pet owners, the ability to drive customer acquisition through word-of-mouth marketing online among connected pet owners is only likely to grow.
And that’s great news for pet insurers because, as recent research shows, referred-in customers are more valuable than other customers, staying longer with the brand and spending more and, in turn, refer-in in more new customers than customers acquired through other channels, like paid search and social or affiliates. We have long identified the list of globally recognized brands that built their businesses on referrals and have suggested that referrals should be part of the marketing mix for insurance carriers, simply because people can and do talk to each other about insurance. And the long list of global insurance referral programs is itself a testament to the efficacy of word-of-mouth marketing in insurance.
Of course, pet insurers face all the same broader challenges that all insurance carriers are confronted with, from the skyrocketing costs of paid marketing channels to the dwindling effectiveness of organic social reach, etc. However, as identified by research from the Keller Institute, the reason that referrals work so well is explained by active and passive matching and social enrichment. In terms of pet insurance, passive matching is simply that pet owners are likely to know other owners of similar pets, and active matching is where pet owners can actively look through their networks to find friends who do have pets and who might be interested in insuring them. Social enrichment comes from not only knowing the friend (and their pet) but also knowing the insurers, their policies, and service levels well. This means that pet insurance policyholders are perfect potential conduits to get the right message to the right pet owner at the right time.
And when you consider that our recent research found that over 90% of consumers reported referring at least once each year, and 95% of participants claimed to have influenced their friends to make at least one successful purchase over the same period then the scope of the opportunity is clear to see.
To illustrate the effectiveness of referral marketing, this article explores successful referral programs implemented by leading pet insurance companies, demonstrating how they leverage personal recommendations to boost their growth and customer satisfaction.
1. Trupanion
Trupanion is a leading pet insurance provider of cat and dog insurance, serving the United States, Canada, Australia, and Puerto Rico. Their referral program offers their customers US$25 for each successful referral and up to US$100 a year. Their referrers will have a choice of voucher once their friend has qualified.
2. Pet Protect
Pet Protect is a pet insurance provider in the UK that offers comprehensive coverage for dogs and cats. Their insurance plans typically cover veterinary expenses in case of illness, accidents, and other medical emergencies, providing peace of mind for pet owners. Pet Protect is known for its straightforward claims process and direct payment to vets where possible.
Pet Protect’s referral program offers a £20 Love2Shop voucher to both the referrer and their friend when the friend takes out a policy and the first premium is paid. The voucher can be used in over 20,000 stores, restaurants, and attractions. The offer is valid only if both policies are active and referrals cannot be made by people living at the same address. Vouchers are sent by email and may take up to 45 days to be received.
3. Agria Pet Insurance
Agria Pet Insurance is a Swedish-founded company offering comprehensive coverage for pets, including dogs, cats, horses, and small animals. Since then, they have continued to grow across Europe and came to the UK in 2009. They provide lifetime policies that cover vet fees for illnesses and injuries throughout the pet’s life.
Agria’s referral program is for existing customers, through which they can introduce friends or family to Agria’s pet insurance. If the referred friend sets up an annual insurance policy and doesn’t cancel within 90 days, both parties will receive a £20 Amazon.co.uk Gift Card.
4. Pet Plan
Petplan is a prominent pet insurance provider operating for over 40 years, primarily based in the UK. They offer coverage for pets facing illness and injury, aiming to alleviate financial burdens on pet owners. As a subsidiary of Allianz Insurance plc, Petplan maintains a strong reputation and trust within the industry.
Petplan’s referral program offers a £20 M&S voucher to the referrer when their friend takes out an annual policy over the phone and pays their first premium. Additionally, the friend will receive 2 months of free insurance. To refer, fill in your name and policy number on the provided voucher, then email it to your friend.
5. Tesco Bank Pet Insurance
Tesco Bank Pet Insurance offers coverage for cats and dogs, provided by Royal & Sun Alliance Insurance Ltd. They offer three levels of coverage: Standard, Extra, and Premier, each tailored to different needs and budgets. Benefits include vet fee cover for accidents and injuries up to £3,000, lost pet cover, and options for advertising and reward costs if your pet goes missing.
Tesco Pet Insurance’s referral program offers a £20 Tesco e-Gift Card to both the referrer and the friend within 3-4 months of the friend’s purchase and they can refer as many friends as they like.
6. MetLife
MetLife is a leading global financial services company offering insurance, annuities, employee benefits, and asset management. Established in 1868, MetLife operates in over 40 markets worldwide, holding strong positions in the United States, Japan, Latin America, Asia, Europe, and the Middle East. MetLife is among the largest global insurance providers in the world with around 90 million customers.
MetLife’s referral program launched in 2022 in partnership with LifeBalance. This program offered discounts and special offers on pet care essentials. Eligible policyholders could redeem up to 5 rewards per year, each valued at up to $25, through their MyPets account. However, this program came to an end on December 31, 2023. Currently, their MyPets Reward Program offers in-account perks and rewards for their customers’ loyalty. Through this, policyholders can redeem up to five rewards per calendar year. The program provides savings on categories such as pet food, toys, grooming, and more.
7. Pets Best
Pets Best Pet Insurance is a Florida-based company that offers comprehensive coverage for cats and dogs, with various plans tailored to fit different needs and budgets.
Pets Best’s referral program donates $25 to charity for each quote received through the customer’s referral link. Policyholders in Nevada will receive a $20 donation credit for each completed referral, while policyholders in West Virginia are not eligible for donation credits. Pets Best often run boosters where their charity donation is increased to $50 for a two-month period.
8. Healthy Paws by Chubb
Healthy Paws is one of the U.S.’s most well-established pet insurance providers, founded in 2009 and based in Washington. Since 2013, Chubb has been the exclusive underwriter of the Healthy Paws pet insurance program for Aon. Chubb is a world leader in insurance. With operations in 54 countries and territories.
Through the Healthy Paws referral program referrers can earn a $25 donation credit to the Healthy Paws Foundation for each friend who completes the pet insurance application process using the referrer’s unique link. This program supports donations to animal rescue organizations and shelters. The program is currently paused with confirmation of its return on the website.
9. Nationwide Pet Insurance
Nationwide, headquartered in Columbus, Ohio, operates across the United States, serving millions of customers. They offer a wide range of products, including insurance, retirement, investing, and banking services, catering to individuals, families, and businesses.
Nationwide’s pet insurance referral program rewards current policyholders with a physical gift for each successful referral who completes an application. The reward comes primarily in the form of branded merchandize, like bags, bottles, and accessories. This program is designed to encourage existing customers to recommend Nationwide’s services to their network.
10. Barkibu
Barkibu, a leading Spanish provider of online veterinary consultations, has been revolutionizing pet care since 2015, now with over one million registered users.
Their Member Get Member program, integrated into the app, rewards referrers with a promotional code for their friends to use during the policy application process. For every successful referral, the referrer earns €25 via bank transfer, while the new customer enjoys a €25 discount on their policy.
11. Embrace Pet Insurance
Embrace Pet Insurance, based in Cleveland Ohio, offers comprehensive insurance coverage for cats and dogs for a wide range of conditions, including accidents, illnesses, and hereditary conditions.
Embrace’s referral program rewards the referrer with a $25 gift card for their first successful referral and then donates the same amount to charities like The Cleveland Animal Protective League, KodiakCare and RedRover for every subsequent referral.
12. Verti
Verti, a leading Spanish insurer founded in 2012, provides top-notch insurance. Verti offers car, motorcycle, home, and pet insurance. Their ‘Plan Amigos‘ Referral program makes it easy to benefit from referrals.
Referrers get a 10% discount on their policy renewal for each friend they bring on board. Plus, if five friends sign up, their next renewal is free. Referrals are exclusively available through the ‘Oficina Internet’ section, accessible with a valid policy number and password. Each new customer also receives a €25 discount on their policy.
Hopefully, this overview of pet insurance referral programs has highlighted how leading pet insurers are leveraging referral marketing to boost customer acquisition. If you’re considering starting a referral program or enhancing an existing one, we’d love to discuss your options. And if you’re working with a company mentioned above and your program isn’t yet powered by Buyapowa, we have plenty of ideas on how to optimize your current referral efforts. Don’t hesitate to get in touch for more insights.