Lemonade Insurance Company secured approval for an 8% overall rate increase on its pet insurance program in Connecticut. The change, effective June 18, 2025 for new business and August 17, 2025 for renewals, affects 7,189 policyholders and $5.6 million in premium, raising premiums by about $453,000.

The filing applies a 10% increase to Accident & Illness coverage and a 3.3% decrease to Preventative coverage. Updates include replacing Pets Best–sourced rating factors with internally developed Deductible x Coinsurance x Annual Limit factors, introducing new discounts for Affinity Groups and Strategic Partners, restructuring Visit Fees as flat charges by pet type, and modifying Preventative coverage by removing coinsurance and raising sublimits.

Lemonade used internal claims data to build a probability distribution supporting the new rating factors. Strategic Partner and Affinity relationships include ZP Insurance, LLC (Gusto Insurance Services).

The filing required an amendment after regulators flagged missing factors, column headers, and premium amounts in the initial manual. Individual policyholder impacts vary significantly, with some increases as high as 143.5%.