Physicians Mutual Insurance Company received approval from the California Department of Insurance to launch a new pet insurance program in partnership with Rainwalk Technology, marking the insurer’s entry into a new pet insurance offering in the state.

The filing, approved on January 16, 2026, introduces a new suite of pet insurance forms and endorsements, including optional coverage for exam fees, vaccinations, holistic and alternative treatments, breeding, and boarding, advertising, and holiday cancellation expenses.

The program also contemplates distribution through affinity organizations, strategic partners, and digital partners, with discounted pricing for members of participating groups.

In a filing response, Physicians Mutual explained that, “The group discounts are intended to be offered to groups that have a non-online affinity or are a strategic partner. These groups have a large membership presence and allow Rainwalk to use their membership lists and contact information to perform enhanced marketing to their members. As a result, there is a decreased cost of acquisition of these members which we reflect by offering a discount.”

The company added that while it does not yet have its own experience supporting the discounts, “we have seen in several other filings that these discounts are also often supported by reduced loss costs.” Physicians Mutual noted that the affinity and strategic partnership discounts are equivalent to discounts approved for American Pet Insurance Company’s Pets Best program earlier this year.

Regarding digital distribution arrangements, the insurer said, “The digital partner discount is intended to be offered to groups that have online-related affinities. This discount is offered to groups that allow enhanced marketing to their members, most often in digital format.”

The filing continued: “These groups also represent a lower cost of acquisition but due to their digital nature, the reduction of cost is not as large as the reduction for affinity and strategic partners. Additionally, these groups have been supported by other companies in their filings by reduced loss cost, though we do not have any experience of our own yet as this is a new program.”

California regulators also asked whether any existing policyholders would be moved into the new program and how it differs from another approved pet insurance program already offered by Physicians Mutual, underscoring the state’s scrutiny of new pet insurance entrants and distribution arrangements.

The filing did not identify any specific affinity or digital partners, with Physicians Mutual stating that no partnership agreements had yet been reached and that California approval was necessary before pursuing those relationships.