The Pet Insurance business is growing and evolving rapidly. But does anyone really know what they’re doing? No long track record with a stable product supported by stable law and regulatory interpretation means risks are high.
But this also applies to established lines like homeowners and auto where change is becoming stochastic. For example, the recent massive increases in Personal Lines shopping behavior isn’t resulting in high levels of switching. Rather it represents carriers getting rid of their bad business. And the carriers that can’t evaluate risks in detail are the ones that get left ‘holding the bag’. And since the speed and specificity at which personal lines risks are being evaluated is rising rapidly this negative result threatens to get even worse for lagging carriers. And as the saying goes: “If you don’t know who the sucker is, it’s probably you.”
