Lemonade submitted a form, rate, and rule filing in New Jersey for its pet insurance program, with changes requested to take effect September 18, 2026, for renewal business. The filing proposes a 38.4% overall rate increase, below the actuarial indication of 52.2%, affecting about 28,860 policyholders and generating approximately $9.1 million in additional premium on a $23.6 million book. Individual uncapped changes range from 5.7% to 143.5%.

The filing introduces a new renewal premium capping rule that limits annual increases or decreases to 25%. Policyholders subject to capped increases for four consecutive renewals will be moved to their full indicated premium in the fifth term. The company is also replacing its policy form and updating rating manuals and calculation methodology while maintaining customizable deductibles, coinsurance, annual limits, and optional add-ons such as preventive care, behavioral treatment, dental illness, and end-of-life coverage.

The rate action reflects continued loss pressure in the core Accident and Illness coverage, where projected loss and LAE ratios exceed 100% versus a permissible level of about 64%. Rising veterinary costs, an aging pet population, and benefit enhancements introduced in 2025 are key drivers. Preventive care coverage remains profitable and is not receiving a rate increase.

The filing follows an 11.8% increase that took effect in September 2025.