A 2020 filing by CUMIS Insurance Society, part of CUNA Mutual Group, shows Bivvy deliberately positioning itself against incumbent pet insurers that emphasized broad coverage, high reimbursement limits, and correspondingly higher premiums. The actuarial memorandum notes that consumer testing revealed many pet owners wanted protection against unexpected veterinary expenses but found comprehensive pet insurance unaffordable.
To address this gap, Bivvy developed a simplified product with lower coverage limits and standardized pricing designed to keep monthly premiums within reach of a broader segment of consumers. Rather than relying on many of the variables commonly used across the pet insurance industry—such as pet age, breed, and geographic location—Bivvy initially intended to price policies largely the same across the market, with limited adjustments based primarily on species and, in some cases, animal size.
The filing estimated a base monthly claims cost of $21.55 per insured pet, built on assumptions of a 31% claims incidence rate and average claim severity of $208. Administrative and marketing expenses were set at $3 per policy per month, alongside a 3% tax load and 5% earnings provision. The company targeted a 65% loss ratio over a four-year cohort, while acknowledging that it had limited historical experience and was effectively testing a new approach to pet insurance.
The distribution strategy also reflected an emphasis on accessibility. Bivvy planned to sell primarily through direct-to-consumer digital channels supported by traditional advertising, while also pursuing employer and affinity group partnerships that could offer policyholders discounts of up to 10%. According to the filing, employers would serve mainly as awareness channels, with employees purchasing coverage directly through Bivvy.
The broader significance is that Bivvy anticipated one of the pet insurance market’s central challenges: affordability. While many competitors competed by expanding benefits and increasing annual limits, Bivvy sought growth by offering a stripped-down alternative intended to appeal to consumers who otherwise might remain uninsured. The strategy highlighted an emerging divide within the pet insurance market between comprehensive coverage designed for high-spending pet owners and lower-cost products focused on expanding overall market penetration.
The filing was submitted in April 2020 and approved on a file-and-use basis in Colorado in November 2021.
