Hedda Båverud Olsson grew up watching her veterinarian mother treat countless sick pets brought in by distraught owners.
Many of the ailments could have been prevented with proper education and preventative care.
Hedda vowed that if she ever started a pet insurance company, it would focus on keeping pets healthy from the start rather than just paying exorbitant vet bills after they became ill. In 2021, she co-founded Lassie with that mission.
But pioneering the Lassie pet insurance model in an ossified industry dominated by traditional players was no easy feat.
The Company
Lassie is a Swedish insurtech startup shaking up the pet insurance industry with its unique preventative approach. Founded in 2021, the company has raised over €23 million from investors like Balderton Capital to fuel its rapid expansion across Europe.
Instead of covering vet bills when pets get sick or injured, Lassie pet insurance combines comprehensive insurance policies with education, coaching, and preventative wellness plans that incentivize owners to be proactive about their pets’ health.
Through customized apps, content, and rewards, Lassie pet insurance equips owners with the knowledge and products to avoid many common pet health issues before they happen.
Despite intense competition from established insurers, Lassie’s innovative and preventive pet insurance model has seen meteoric growth to over 60,000 customers spanning 400+ dog breeds and 200+ cat breeds across Sweden, Germany, and France. The startup is led by an experienced team blending veterinary, insurance, and technology expertise.
The Preventative Pet Care Dilemma
While beloved members of the family, many pet owners struggle to provide quality preventative healthcare for their dogs and cats due to the rising costs of veterinary care.
A simple injury like a fracture can cost €500 or more to treat. As a result, millions of pet owners are forced to make difficult financial tradeoffs that compromise their pets’ well-being.
At the same time, traditional pet insurance has failed to properly incentivize or assist owners in keeping their pets healthy. Policies only cover expenses after pets get sick or injured, doing nothing to avoid claims in the first place.
And with little transparency and rewards for being proactive, owners have no incentive to invest in preventative care.
This dynamic creates a vicious cycle where preventable conditions go unaddressed until they become costly claims that drive up insurance rates further each year. Incumbent insurers have been content to keep raising prices rather than finding innovative ways to promote pet wellness.
Hedda Båverud Olsson’s mother, a lifelong veterinarian, saw this issue play out firsthand with client after client. Many pet ailments could have been avoided entirely if owners had just been empowered with the right knowledge, preventative tools, and aligned incentives.
Olsson made it Lassie’s mission to transform pet insurance from an antiquated, reactive cost center into a proactive and preventive pet insurance system designed to keep pets healthier while controlling costs.
Lassie Pet Insurance Ecosystem
Lassie pet insurance was reimagined from the ground up as a holistic “preventative pet ecosystem.” Rather than just cutting checks after pets get sick or injured, Lassie pet insurance wraps comprehensive insurance policies with supporting education, products, and incentives to promote overall pet wellness and avoid claims altogether.
At the core is Lassie’s mobile app, which is a hub for pet health coaching and content.
Owners can access courses, videos, and articles curated by veterinary experts on everything from nutrition to training to exercises based on their pet’s specific breed and age.
As they complete this education, owners earn reward points redeemable for discounts on their annual insurance premiums.
The app also includes e-commerce functionality for ordering pet medications, supplements, wearable health devices, and other wellness products recommended based on each pet’s health profile.
Owners can easily chat with Lassie’s support staff directly through the app as well.
On the insurance side, Lassie pet insurance offers tailored policies for dogs and cats of all breeds with no age caps or exclusions. Using advanced data models and proprietary AI, they can generate hyper-personalized policy pricing, coverage amounts, and deductibles customized for each pet.
Preventative wellness packages are a core product line too. For an annual fee, pets get services like vaccinations, flea/tick prevention, dental cleanings, and routine health screenings fully covered as part of the plan.
There are no waiting periods or deductibles for preventative care.
Lassie has even started automating claims processing with machine learning models to increase efficiency and reduce operational costs that would otherwise get passed on to customers as higher premiums.
Choosing Insurely as a partner to make pet insurance more smooth and transparent was the best move by Lassie.
Disrupting Traditional Pet Insurance
Lassie’s unique preventative pet insurance approach has disrupted the pet insurance industry and fueled meteoric growth for the young startup.
Since launching in their home market of Sweden in 2021, they’ve rapidly expanded to over 60,000 customers across Germany and France as well.
In Germany specifically, Lassie’s year-over-year customer growth was in a good ratio. Their proprietary AI pricing models and efficient automated claims process require a relatively lean team yet still maintain impressive customer satisfaction scores.
Existing customers rave about how Lassie’s educational resources and preventative wellness packages have helped them become better pet owners while saving money too. Over 90% actively use the app.
The startup’s success and innovative business model have earned glowing profiles in publications like Forbes, TechCrunch, and more. They were also named one of Europe’s Hottest Startups in 2023 by Wired Magazine.
With a recent €23 million Series B funding round, Lassie is doubling down on expanding across more European markets while continuing to push the boundaries of what a pet insurance provider can encompass.
Innovative Incentive Realignment Through Technology
Lassie’s pioneering “preventative pet insurance” model spotlights the power of realigning incentives and adopting a holistic, proactive approach to a seemingly mature industry.
By making education, wellness services, and smart product bundles core to their offering, Lassie transcended just paying claims to become a true health partner invested in their customers’ long-term well-being, specially with their preventive pet insurance.
Their use of technology like AI pricing algorithms, claims automation, and personalized digital coaching demonstrates how strategic data and software applications can create new service experiences that better meet customer needs.
For incumbents in industries at risk of disruption, Lassie highlights the urgency of embracing bold innovation rather than resting on legacy business models.
Complacency creates opportunities for startups like Lassie to redefine entire sectors by rigorously rethinking misaligned incentives and creatively bundling services.
