What started as a business plan competition at Wharton School of Business at the University of Pennsylvania in 2003 has today turned into a thriving pet insurance business for CEO Laura Bennett and chief marketing officer Alex Krooglik. Embrace Pet Insurance offers comprehensive insurance plans for pets with a focus on customer service.

"It came about when a friend's cat got sick," explains Bennett. "She spent $5,000 to take care of it. We saw pet insurance had huge potential, it's an unpenetrated market." While 25 percent of pet owners in the U.K. have pet insurance, only sixth-tenths of one percent insure their pets in the U.S.

Pet care is a $50 billion a year market, according to the American Pet Products Association, $14 billion of which is spent on veterinarian bills.

"People are still spending on their pets, even in a recession," says Bennett. "This is for people who would spend anything to bring their pet back to health, to do what is right." The two won the business plan competition, graduated and decided to launch Embrace in Beachwood in 2003.

After a somewhat rocky start, they found funding through JumpStart in 2004 and sold the first policy, to Bennett, in 2006. They've received additional investments over the years, and have relied mostly on word of mouth for their growth and success.

Bennett, who has a background in finance, crafts the policies like traditional insurance plans for cars and trucks. Policy owners can pick and choose their level of coverage, and even hereditary and chronic conditions can be covered. "We give a lot of options, even a health spending account for pet wellness," says Bennett. "There's a lot of actuarial science behind it."

In an industry that is growing by 25 percent annually, Embrace Pet Insurance has grown exponentially. They now have 23 employees and are continuing to hire. "We want to build on that momentum," says Bennett. "I see us in the next five years going from 23 people to 50 to 60."

"Alex and I created this out of nothing, it was just something in our heads," says Bennett. "We've struggled, we've worked really hard, it's been fantastic."


Source: Laura Bennett
Writer: Karin Connelly