Independence Pet Insurance Company is introducing a new rate and rule filing for its Pets Best program in New Mexico, marking a transition of a closed block of business previously underwritten by American Pet Insurance Company.
The filing, submitted April 7, 2026, and effective October 2, 2026, reflects a significant pricing reset tied to the transfer of the book. Approximately 1,618 policyholders representing $478,558 in written premium will be impacted.
At the core of the update is a 50% overall rate increase, compared to a 55.4% indicated change, suggesting a moderated approach to rate adequacy. The increase applies to medical coverage, while accident-only and wellness rates remain unchanged.
The move is not a new product launch but a book roll strategy, with Pets Best transitioning underwriting responsibility from American Pet Insurance Company to Independence Pet Insurance Company. Existing policyholders will migrate at renewal, with no reset to waiting periods or pre-existing condition limitations.
From an actuarial standpoint, the filing leans heavily on generalized linear modeling using countrywide data from 2021 through 2024. The underlying drivers point to elevated loss trends, including a ~30% annual severity trend, pushing loss ratios toward ~90%—well above permissible levels and necessitating corrective pricing.
To manage policyholder impact, the company is capping renewal increases at +75%, with a floor of 0%, limiting downside adjustments while allowing for meaningful upward correction.
The program itself maintains a flexible structure, offering:
- Coinsurance options ranging from 10% to 50%
- Deductibles from $50 to $2,000
- Annual limits up to unlimited
- Optional wellness and supplemental benefits
Pricing continues to rely on a multi-factor rating framework incorporating geography, breed, age, deductible, and coverage selections, alongside behavioral and structural plan features.
Bottom Line: This is a loss-driven repricing tied to a carrier transition, with Pets Best using the shift to Independence Pet Insurance Company to realign rates with emerging claims experience while maintaining continuity for existing policyholders.