Bivvy, the pet insurance brand underwritten by CUMIS Insurance Society, filed plans to withdraw from Georgia’s pet insurance market, citing the significant investment required to scale the business despite finding product-market fit.

The filing, submitted on February 16, 2023, outlines CUMIS’s intention to cease offering all pet insurance policies marketed under the Bivvy brand. Existing policies would be non-renewed at the end of their terms, with the final non-renewals expected by January 31, 2024.

According to the filing, Bivvy was developed within a CUNA Mutual Group innovation hub and successfully demonstrated consumer demand for its lower-cost approach to pet insurance. However, the company determined that expanding the business would require substantially higher investment levels.

“While the team found product market fit, the company was faced with the decision to move Bivvy Pet Insurance to scale with an investment significantly larger than our existing spend,” the filing states. “That investment would be necessary to achieve the scale business metrics on administration cost, customer retention and ultimately a forward-looking sustainable business model.”

The filing adds that pet insurance “was not core to CUNA Mutual’s vision of the future” and that the capital could be better deployed elsewhere within the organization.

At year-end 2022, Bivvy had 2,866 active policies in Georgia and generated $507,560 in written premium in the state during 2022. The company estimated its share of Georgia’s inland marine market at 0.003%.

The filing also disclosed deteriorating loss experience in Georgia, with the product’s loss ratio increasing from 65.6% in 2019 to 84.5% in 2022. On a cumulative basis, Georgia business generated $1.2 million in premium and $937,456 in claims, resulting in a 77.7% loss ratio.

Across all states, Bivvy’s operating results reflected the challenges of achieving scale. The company reported combined ratios of 483% in 2020, 182% in 2021, and 123% in 2022, while operating ratios improved from 490% to 130% over the same period.

To assist affected policyholders, Bivvy partnered with Spot Pet Insurance Services as a recommended provider for dog and cat owners seeking replacement coverage. The company noted that it would refer customers to Spot but would not directly sell Spot policies.

The filing was acknowledged by Georgia regulators on March 14, 2023, with an effective date of April 2, 2023.