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Issue #43

February 13th, 2024

Get a FREE pet insurance quote in less than 60 seconds! Sign up for an Odie pet insurance policy today!

Quick Hits:

🐶 A few crucial things to know before getting a Pitbull

😬 Dog as emojis

🐱 Most popular cats in America

👨‍⚕️ Pets are very important in anybody’s life

• Schnell - German meat giant Westfleisch has expanded its pet-food arm with the acquisition of The Petfood Company.

• Woof Gang goes north - The grooming and bakery franchise opens its first location in Ontario, Canada.

• Namaste - Indian animal healthcare firm Zenex acquires Ayurvedic pet business

• Sploot gets the loot - L Catterton invested $40 million in Sploot, the Denver-based vet care platform. 

• Nyet - Russia is restricting imports of certain dog foods.

• iRobot - A Danish robotic production equipment manufacturer was just acquired by Indutrade, a Swedish international technology and industrial business group.

• Midwest expansion - The Bear & The Rat is expanding its premium frozen dog treat brand’s products throughout the Midwest.

This week we sat down to talk with Miles Thorson, the co-founder & CEO of Odie Pet Insurance.

I know you have a long history working with insurance, what is your background?

I grew up in the industry and got exposed to a lot of behind-the-scenes industry knowledge through the lens of our multi-generational agency. Our family dinner conversations have been centered around business for as long as I can remember, so I’ve always had a keen interest in the space and driving innovation. However, the opportunity to build something meaningful alongside family was always the real draw. When I joined our companies after a few years away working with a startup, there was comfort in being a part of this business legacy while still having the freedom to forge my own path. Launching Odie has been so rewarding because it perfectly balances those two things.

Having the extensive knowledge you do, what did you see in the pet insurance landscape that made you decide to enter it? and what sets you apart from your main competitors. (feel free to expand on the B2B aspect)

When assessing new lines of business, we consider several key factors. We, of course, learn the coverage product and assess whether there are opportunities to improve it or if any segments of the market are underserved. We then look at the underwriting performance and pricing trends of other providers. Finally, we look at current distribution strategies and opportunities to disrupt the market.

With pet insurance, we found that coverage, pricing trends, and distribution strategies directly impacted one another far more than other lines of insurance. We believe that expanding distribution to new channels and creating a better spread of risk and program efficiencies can help us substantially reduce coverage pricing for pet parents.

Today, Odie is highly focused on building strategic B2B2C partnerships in verticals such as employee benefits, personal insurance, and pet wellness providers with the goal of getting pet parents the coverage they need before they experience a health event.

Vet referrals and online D2C acquisition negatively affect underwriting and coverage affordability, which hinders the widespread adoption of pet insurance here in the U.S. We felt that a novel approach to distribution through tech-based B2B partnerships with other insurance providers, employee benefits groups, and pet wellness services would allow more pet parents to find quality coverage before they end up in the vet office with a large healthcare bill. In addition to providing insurance coverage, Odie is also extremely focused on providing wellness and preventative care tools to keep pets healthier for longer through routine care coverage plans, complimentary access to tele-vet care, or unique perks and discounts with retailers and pharmacies.

What are the main differences between human & pet insurance as far as setting up a company goes?

Pet insurance and human health insurance differ in terms of their licensing requirements. Pet insurance falls under Property & Casualty licensing, whereas human health insurance falls under Life & Health.

While pet insurance acts like human health insurance in some ways, pets are still classified as property, making the pet insurance industry less complex than the highly regulated human health industry. That said, Odie's plans are still subject to regulatory approvals and filings in all 50 states, which can be cumbersome.

How do you acquire new customers? What marketing channels have proven most effective?

Our Odie website (getodie.com) enables pet parents to obtain coverage in less than a minute and provides the opportunity to customize their plan and coverage options. 

However, our business mainly relies on third-party distribution partnerships using our coverage products and technology systems as a service. To date, we've seen the most growth through employee benefits channels, as pet insurance has become the most requested voluntary benefit amongst employees. Most recently, we've been working on developing exciting, embedded insurance opportunities with personal insurance providers as well as digital pet retail platforms.

How do you navigate regulatory challenges in the pet insurance industry? What compliance measures are crucial for operating in this space?

Pet Insurance is an evolving space now more so than ever. There's been a big push for state regulators to adopt a singular "model law," and where that's occurred, we've been forced to update aspects of our program. Beyond insurance, there's a lot of speculation about pet care regulations, specifically around telehealth diagnosis, billing code standardizations, and other items that have the potential to impact insurance claims and coverage. We prioritize being on the leading edge of industry evolutions, so we rely on a team of attorneys and subject matter experts to discuss ideas and ensure compliance.

How does technology play a role in your pet insurance operations? Are there any innovative approaches or technologies you've adopted?

Efficient technologies play a crucial role in managing tens of thousands if not hundreds of thousands, of policyholders. Our goal is to provide a modern experience that our members would expect from all other areas of their lives without losing the human touch of personalized service. Our automations streamline our most important interactions, which tend to be around claims payments. We're integrating machine learning tools to expedite arduous aspects of claim approvals, such as reviewing medical records, while deploying digital payments for instant claim reimbursements to ensure that our members receive their funds quickly.

What can you tell us about your latest strategic partnership with PetRX?

We're very excited about this partnership because it's a first of its kind for us. Our integration into their online pharmacy and retail platform demonstrates how simple and convenient it is to purchase coverage and that insurance can be considered an essential need for all pet parents. If you're purchasing OTC medications or getting prescriptions filled, why not opt for a trusted insurance plan from the same platform in order to be reimbursed for those items?

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• Neuter your ex, for cats - This cat rescue found a humorous way for the community to donate to their Trap-Neuter-Return program.

• Collar wars - Petcube just launched a new GPS collar

• Just let him play - A concerned neighbor called the cops because this dog was out in the snow but the cop wasn’t worried.

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In 2022, you raised $3 million from RedBird Capital Partners. How did you find the fundraising process? What were some key learnings you can share?

Fundraising is a complex process that requires a nuanced approach, and I believe it is more of an art than a science, contrary to what some LinkedIn posts might suggest. If you're seeking funding, my advice would be to identify investors who share your vision and are enthusiastic about the opportunity you're pursuing and then focus your energy on them.

It sounds obvious, but it's important to find investors who understand the "why" behind your vision and ask questions about the "how." During times of challenges, down cycles, and other noise, you want backers who are willing to help and support you rather than question their investment.

In terms of your team, who were the first people you hired? How do you identify the right talent to bring onto the team?

I've been fortunate to have the best business partner in my wife and co-founder, Zabrina. Even if you're not married, it's imperative to find partners in the early stages of a company who have complementary skills, which is the case with both of us. 

We learned that patience is key when it comes to finding the talented people who have joined our team at Odie. It's better to take a bit more time and bring in the right people for the long term to avoid undoing poor decisions down the road. For us, that meant finding people who understood the challenges and opportunities of joining a startup.

Tell us a bit more about your interactions with your investors & Board post-raise. What new capabilities have you developed? Any key learnings?

We've definitely become more consistent in providing financial and KPI reports to our stakeholders. I've learned that it's better to keep them over-informed and to embrace and utilize the knowledge and skills of those supporting our business. Ultimately, our investors want us to succeed, so I'm doing my best to tap into their wealth of experience without forgetting that Odie and its people are still our final responsibility.

We don’t want to hound you, but we think it’s time you subscribe. If you’ve already subscribed, well, round of ap-paws for you.

• Salmonella and Listeria walk into a bar - A nationwide dog food recall was recently announced.

• Hey Stella - Stella & Chewy’s, the premium pet food brand, just inked a partnership with Phillips Pet Food & Supplies to ramp up its US distribution.

• Yellowstone - The popular show now has dog treats that aim to provide your canine with the “Wild West” experience.

You reached the end, you deserve a treat 🍖

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Finally, What do my dog and my phone have in common?

They both have collar I.D.

See you next week!

The Woof is a weekly newsletter dedicated to covering the pet industry. 

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