Petplan

Founding

Petplan was founded in September 2003 by husband and wife entrepreneurs Chris and Natasha Ashton. They met at St Edmund Hall, Oxford, where they both received their Bachelor of Arts and Master of Arts degrees.

Prior to moving to the United States in 2001 to attend graduate school, Chris spent seven years serving as an officer in the British Royal Marine Commandos, while Natasha spent several years working for a Greek manufacturing company, a leading international information technology recruitment firm, and launching a small import business in the UK.

In July 2001, the Ashtons moved to Philadelphia with their Birman cat, Bodaceia (Bodey), to begin working toward their MBAs at the University of Pennsylvania Wharton School of Business. Not long afterwards, Bodey became ill, and the end result was a veterinary bill for $5,000. Already saddled with student debt, the Ashtons had to juggle credit cards and move to a smaller apartment to pay for Bodey's care.

The experience – along with the knowledge that in the Ashtons’ native Britain, nearly a quarter of pets are insured – gave them with an idea for a business plan. They submitted that plan, for a pet insurance company called PAWS, to the 2003 annual Wharton Business Plan Competition, and were part of the team that won the $20,000 grand prize.

That fall, the Ashtons incorporated Fetch Inc., which in November 2003 was awarded the exclusive license for the Petplan brand in the United States. The affiliation with Petplan UK allowed Petplan USA to access more than 30 years of actuarial data.

Early Growth

The company took some time to get on its feet. By July 2005, the Ashtons were in debt, relying on investors and venture capital to get the company off the ground. That same month, Petplan secured American National Property and Casualty Company (ANPAC) to underwrite its policies in the United States. A year later, in July 2006, the company began selling its first policies.

Soon after, Chris Ashton approached the Wharton Entrepreneurial Program for advice on a national marketing plan and was directed to visiting lecturer Alan Abrahams, who assigned Petplan USA as a data-mining test case to his students. The students' work helped determine marketing strategies for the company, providing information on potential areas of interest. The main benefit of the data mining likely was the media coverage it attracted because according to the peer-reviewed article published by Abrahams, the goal of the data mining was to find demographic features of ZIP codes containing at least one vet.

Also in 2006, through their Wharton network, the Ashtons met Shirley and Vernon Hill, the Commerce Bank founders (who now operate Metro Bank in England) and major donors to the University of Pennsylvania School of Veterinary Medicine, along with Hill's banking client, Brian Tierney, the advertising and public relations agency owner who was an entrepreneur-in-residence at Wharton that year. Hill added Petplan as an employee benefit at Commerce, and Tierney offered marketing advice. Travelocity, S.C. Johnson & Son and other employers followed Commerce, boosting Petplan's early sales.

Additionally, in 2007, the Humane Society of the United States began recommending Petplan.

By July 2007, the company was seeing double-digit growth each month, and was up to 10 employees. But then, Chris Ashton shattered his ankle and broke two ribs in a household accident. He endured several surgeries and six months of rehabilitation before he walked again. Complications from blood clots sent him back to the hospital twice.

After the accident, the Ashtons realized they had to create a stronger internal structure, and they needed partners to do it. With Chris still on crutches, they met with Hill in January 2008. Four months later, Petplan announced that Hill was the new Chairman of the Board.

Expansion

In June 2008, Petplan hired Dr. Jules Benson, BVSc MRCVS, as Vice President of Veterinary Services. Prior to graduating from the University of Liverpool School of Veterinary Science, Dr. Benson worked as a wildlife volunteer in Egypt and also spent time working with sheep, cattle and horses in farms across England and Wales. He moved to the United States in 2004 and settled in Bucks County, PA, where he worked in a small animal practice.

Dr. Benson helps Petplan ensure that its policies cover the evolving medical needs of its policy holders. He also serves on the Board of Trustees for the Pennsylvania Veterinary Medical Association (PVMA) and is on the board of directors for 2nd Chance Rescue.

Continuing its effort to strengthen ties to the veterinary community, in November 2008 Petplan launched fetch!, a glossy quarterly pet health magazine. The magazine is free to all policyholders and is available for purchase at Barnes & Noble stores, online and as an iPad or iPhone app.

In March 2010, Petplan partnered with Allianz, the world's largest property and casualty insurer, to underwrite their policies throughout the United States. and Canada.

In April 2010, Chris and Natasha Ashton were named to the Philadelphia Business Journal's prestigious annual "40 Under 40" list.

In August 2011, Petplan became the first and only pet insurance company named to Inc. Magazine's list of the 500 fastest-growing companies in America. Coming in at #123, Petplan was recognized for tripling its workforce and growing its gross written premiums by more than 2,200 percent over the past three years, despite the challenging economic climate.

The employee count was expanding, too, up to 40 by the beginning of 2011, and that number continues to increase. The office itself has had to grow to accommodate the staff, so in 2010, Petplan acquired the adjacent suite in 1 International Plaza and broke through the wall to roughly double the square footage.

In October 2011, Smart CEO magazine selected Petplan as a recipient of its 2012 "Future 50 Awards," which celebrate the Philadelphia region's 50 fastest-growing companies based on employee and revenue growth over the past three years.

Pet Insurance

Pet insurance covers unexpected illnesses, accident and injuries for dogs and cats. Policies provide coverage for all hereditary, congenital and chronic conditions – including cancer, diagnostic testing, non-routine veterinary exam fees, prescription medications, non-routine dental treatment, MRI, CAT scan and ultrasound imaging as standard.

Like all pet insurance companies, it does not offer coverage for pre-existing conditions, defined as those medical conditions that first occurred or showed clinical sign(s) or symptoms before the effective date of the policy or that occurred or showed clinical sign(s) or symptoms during the policy waiting period.

Premiums are calculated based on each pet's breed, age and the cost of veterinary care in their geographic area.

Coverage

Petplan offers a broad range coverage, from $2,500 to unlimited annual coverage per year. Policyholders select an annual or per condition deductible, which gets deducted from reimbursement after the co-pay has been applied; and also choose a reimbursement of 70%, 80% or 90%, once the deductible is met.

Petplan offers a choice of deductible options ranging from $100 to $1,000:

If you file multiple claims for the same condition (e.g. three claims for treatment related to one foreign body ingestion), your deductible will only be applied once, providing all treatment took place within one policy year.

If you file claims for multiple unrelated conditions (e.g. one ear infection claim and one foreign body ingestion), your deductible will be applied for each claim.

For both deductible types, both your annual limits and your selected deductible will be reset at renewal.

Vet-Authored Content

Petplan also provides pet health information and resources for its policyholders in several ways via its website. In its "Virtual Clinic," Petplan offers a Condition Checker that highlights common breed-specific ailments, and Health Tips, which break down those ailments and others, explaining the causes, symptoms and treatment options.

Petplan's fetch! blog features seasonal advice for pet health, written by a team of veterinary professionals.

fetch! magazine

In November 2008, Petplan launched fetch! magazine, a glossy quarterly pet health magazine filled with veterinarian-authored and -reviewed content. A subscription to fetch! magazine is included with every pet insurance policy Petplan issues. Each issue is uniquely themed, and the article topics developed for each issue apply to both dog and cat owners.

Initially available only to Petplan policy holders and select veterinary practices, fetch! now has readership that exceeds 250,000. It is available at Barnes & Noble bookstores across the United States and also by subscription via Petplan's website. In May 2011, fetch! also became available as an iPad or iPhone application.

Capital BlueCross

In late October 2011, Capital BlueCross announced it would begin selling Petplan pet insurance to its members. Premiums, deductibles and coverage levels are paid by plan members, and the policies are administered electronically by Petplan. Capital gets paid a commission on each policy.

North Shore Animal League America

In May 2011, Petplan was selected by North Shore Animal League America, the world's largest no-kill animal rescue and adoption organization, as their exclusive pet insurance provider.

Petplan and NSALA make available the Adopter's Advantage, an introductory pet insurance policy that provides 30 days of complimentary pet health insurance to all newly adopted pets from the Animal League. Adopter's Advantage covers accidents, illnesses, surgeries and prescription medications. During this initial 30-day period, the policy provides claim coverage of up to $1,000.

Morris Animal Foundation

Petplan is a national sponsor of Morris Animal Foundation's K9 Cancer Walk Program. The K9 Cancer Walk program was launched in 2008 to raise money for Morris Animal Foundation's Canine Cancer Campaign, which helps dogs live longer, healthier, cancer-free lives.

Recognition