Old Republic Insurance Company’s California pet insurance filing reveals an unusual pricing bet: pet owners who buy insurance through agents and other non-digital channels are better risks than those who purchase coverage online. The insurer introduced a new sales channel discount that gives customers purchasing outside digital channels a 15% premium reduction.

The company did not have sufficient experience within its own book to support the change. Instead, it relied on data from another Companion Protect-administered pet insurance program, using experience from CSAA’s pet insurance business. The data showed a stark difference in performance between the two groups.

Policies sold through digital channels generated a 63.5% loss ratio and supported an indicated rate increase of 11.6%. By comparison, policies sold through agents and other non-digital channels posted a 40.8% loss ratio and supported an indicated rate decrease of 21%.

Old Republic argued that the experience demonstrates that customers purchasing through agents or other non-digital channels have “significantly better loss experience” than those purchasing online. Because most of the company’s current policies are sold digitally, it estimated that the new discount would have only a negligible impact on the overall rate level.

The filing, which was approved in February 2025, included a 31.8% rate increase and several product changes, including new annual and lifetime policy limits, annual deductibles, expanded waiting periods for orthopedic conditions, renewal and non-renewal provisions, and a mandatory arbitration clause. The changes affected 71 policyholders and approximately $22,913 in written premium, generating an estimated $7,291 increase in premium. The insurer said its indicated need was significantly higher at 66.5%.