A 2021 filing in Texas offers a glimpse into Zurich’s strategy for growing its pet insurance business: expand distribution through employers, professional associations, and membership organizations.

Zurich submitted the filing on January 12, 2021, seeking approval to revise the rating rules for its pet insurance program by updating the list of groups eligible for program discounts. The filing was approved without additional information requests on September 24, 2021, with an effective date of January 15, 2021. The company indicated that the changes were rate neutral, with no impact on overall premiums.

The newly added groups included the Academy of Nutrition and Dietetics, Air Force Association, American Dental Hygienists Association, Crawford & Company, Emporia State University Alumni Association, Fleet Reserve Association, International Council of Shopping Centers, NextEra Energy, Proliability Plus, The Honor Society of Phi Kappa Phi, and the University of New Mexico Alumni Association, among others.

In response to a regulatory inquiry, Zurich explained that the discounts were justified by lower acquisition and underwriting costs associated with affinity distribution.

“The discount is based on the expected reduction in marketing and underwriting expenses that will occur due to the marketing efforts of the partners and economies of scale,” the company wrote. “The discounts are similar to those filed by other carriers (Nationwide S651653).”

The filing also revealed that Zurich had anticipated expanding its affinity network over time.

“When this new program was initially filed, only a couple of these groups were known. At the time, it was discussed and agreed upon that we would update the list as additional groups are identified.”