CRAIN’S CLEVELAND BUSINESS
|
M AY 2 9 - J U N E 4 , 2 017
|
PA G E 3 5
AKRON
As our love for pets grows, so does insurer By JUDY STRINGER clbfreelancer@crain.com
Ask Liz Watson about what she does for a living and she will tell you, “I work for the coolest company in the coolest industry you’ve never heard of.” Watson is chief marketing officer Rushovich Watson for Crum & Forster Pet Insurance Group, one of the oldest and largest village in 1997, not a cutesy nod to pet insurers in the United States. that affection. A New York-based Nestled in the shadow of the land- hedge fund investor brought mark Lockheed Martin Corp. Airdock Rushovich on board in 2005, and on Massillon Road, it provides health Hartville Pet Insurance moved to insurance for companion animals — North Canton one year later. Early on, Rushovich set out to difdogs and cats primarily, but more recently horses, too. Plans typically ferentiate Hartville by aligning the cover accidents and illnesses, al- insurance company with the Amerithough preventative coverage is can Society for the Prevention of Cruelty to Animals, aka the ASPCA, available. The Akron business was known as one of the world’s largest humane societies. Hartville Pet InsurIn 2006, Hartville ance Group until last “Ten years ago, approached the ASmonth, when it adCPA about donating opted the name of we had 48 portion of each parent company and employees and apolicy sold to the specialty insurance nonprofit, which in provider Crum & about 25,000 turn agreed to enForster Co. The redorse Hartville’s inbrand is meant to pet policies in surance if it stopped give Watson and her covering services the team greater visibili- force. Today, ASPCA considered ty as they penetrate we employ inhumane, such as the U.S. marketdeclawing, tail dockplace, where cur- more than 150 ing and ear croprently only about 2% ping. Soon after, of all pets are in- people and are Hartville added the sured. at nearly name ASPCA to its “The awareness is policy line. not there as much as 120,000 “It’s been exit is in other places, tremely successful. like the U.K.,” she policies.” We’ve had that said. “We think this industry can get — Dennis Rushovich, Crum & brand and that partfrom the 2% to the Forster senior vice president nership for more than 10 years,” 5%, but it really is Rushovich said. “It is part of our still in that growth phase.” According to Watson, 65% of growth, part of our culture, and we’ve American households — nearly 80 aligned ourselves very closely with million families — own a dog or a cat. them” Rushovich also was a founding Pet owners spent $63 billion on their pets last year. That includes $16 bil- member of the North American Pet Insurance Association, lion worth of veterinary care, where Health costs have increased 71% since 2006, launched in 2007. That was importdriven primarily by greater utiliza- ant, Watson said, because “in an intion and a wider range of treatments dustry that is starting to grow and and services, such as chemotherapy, does not necessarily have as much market awareness as other insurhip replacements and root canals. Recurrent Harris Polls, mean- ance, you have to find a way to work while, show that Americans are be- together collaboratively to raise the coming more pet-centric in their atti- awareness of the product and come tudes toward companion animals, up with best practices.” In 2013, Crum & Forster, a longwith 95% of today’s pet owners saying they consider their pet a part of the time underwriter for Hartville’s polifamily — a trend not lost on market- cies, bought the company and added ers that frequently refer to owners as Hartville to its specialty insurance portfolio. “pet parents.” Watson said the financial whereAnd more pet parents are turning to insurance to manage higher veter- withal of Crum & Forster — which is inary costs and give Fido and Fluffy owned by Ontario-based Fairfax Fithe best care possible. As an industry, nancial, a $9.3 billion global financial Watson said, pet insurers have seen holdings business — allowed Hart14% to 15% year-over-year growth in ville to invest for growth. That meant the past three years, with about 1.6 moving out of the cramped North million dogs and cats in the U.S. cur- Canton facility and into a newly renovated, open and airy corporate rently insured. Crum & Forster is seeing policy headquarters in a building abandoned by Lockheed. growth rates closer to 20%. The 25,000-square-foot office, “The company has developed really well with an increasingly pet-cen- opened in 2015, houses a state-oftric culture,” according to senior vice the-art call center, a data center, a president Dennis Rushovich, who cafeteria appropriately named the oversees the Akron outfit. “Ten years “chow room” and an outdoor play ago, we had 48 employees and about area for dogs. “We have over 30 dogs in the office 25,000 pet policies in force. Today, we employ more than 150 people every day,” Watson said. “Little ones. Big ones. Some people will bring in and are at nearly 120,000 policies.” Yes, Americans love their pets, but two. Young. Old. They’re are all here.” In its 20 years of business, Crum & the Hartville moniker was derived from its founding in the Canton-area Forster Pet Insurance Group has is-
It’s a dog’s life for Lucy, the office pooch of Crum & Forster Pet Insurance’s Akron location. (Contributed photo)
sued 400,000 policies and processed more than 1.6 million claims. Gary McGeddy, president of Crum & Forster Accident and Health, which includes the pet insurance group, said much of that success can be attributed to the ever-evolving product line.
When pet parents wanted preventative care, the company added a wellness rider. Age and breed restrictions were removed in response to consumer demand. It also switched from reimbursements based on “reasonable and
customary” charges — as is done in human health insurance — to those based on a percentage of actual charges, which decreases out-ofpocket costs for customers, McGeddy said. Watson thinks much of Crum & Forster’s current growth is linked to a new Complete Coverage package that allows customers to choose the type of services that are covered, the percentage of reimbursement and their deductible. “You can get the amount of coverage you need that fits into your budget,” she said. Going forward, the company has a multichannel plan to get a growing slice of the expanding pet insurance pie. Some of those channels, like vet reps and direct-to-consumer, have been in place for years. Others are emerging, most notably companies making pet insurance a benefits option for their employees. Pet insurance ranks as one of the two most requested voluntary benefits in corporate benefit plans, Watson said, often just behind identify theft coverage. “We see that as an exciting growth opportunity.”
Recognizing the fastest-growing companies in Northeast Ohio.
30TH ANNIVERSARY
The honor you’ve earned. The recognition you deserve.
SAVE THE DATE You’ve worked hard and done what it takes to make your business a success. Now it’s time to see if you’ll land atop the 100 fastest growing companies in the region!
NOMINATION FORM FOR THE 2017 WEATHERHEAD 100 OPENS JUNE 5, 2017. Also, plan to join us THURSDAY, NOVEMBER 30 when we gather to count down the 2017 winners. Questions? Interested in sponsorship opportunities? Contact Cassie Pinkerton at 216-368-0927.
Hosted by
www.weatherhead100.org Presented by
Sapphire Sponsor
Publishing Partner