Randy
Valpy (RV) is one of Canada's best known industry leaders. Last year, Randy
accepted the challenge to create a new division of RSA (Royal and Sun Alliance).
Pets Plus Us is the newest entry into Canada’s pet health insurance
market. InfoStream caught up with Randy at the new headquarters for Pets
Plus Us, just west of Toronto.InfoStream (INFO): A year ago we visited with you just after you accepted this new position. So the first question should be; What have you discovered about Pet Health Insurance during the past year?
RV: Well, first of all, we conducted insight panels with vets, pet owners and other industry experts and we learned
there are many 'white spaces', that is, places where there is an opportunity
to add value to pet owners. Second, we discovered pet insurance isn't perceived as a positive
addition to most pet families because of deep seated negative
perceptions. Finally, the most important thing we learned was that an
increasing number of pet owners are proactive and responsible; They want to get
it 'right' but they don't always have the resources at their finger tips to
make the best decision.
INFO: Last year we noted that pet insurance in
Canada had a market penetration of about 1% which translates into health coverage for
around 150,000 pets. This performance seems somewhat dismal for an
industry that has been working at it for more than 20 years. What kind of
negative perceptions did you uncover?
RV: Pet families are
skeptical about health insurance for their pets. They hear a lot of 'no'; they
expect the 'fine print' to squash their coverage; they think underwriters stack
the deck against them; and, they find it hopeless when they aren't allowed to choose
from a list of treatments and coverage they might like to have.
Moreover, these perceptions often become their reality just when they
experience a pet crisis and need a helping hand.
INFO: Wow, no wonder pet owners feel
negative. But how do you think you can turn these perceptions
around when you have profits, low loss ratios and financial performance to achieve?
RV: Sorting this out required market
research, lots of listening and a substantial investment in modeling what we had discovered. In the end, the solution turned out to be simple. We need to focus
on supporting the pet owner, becoming their ‘best friend’, the ‘house of yes’,
the place they turn when difficulties are encountered and the community with
whom they celebrate the wonderful things they enjoy about their pet.
INFO: When we listen to you, we hear your excitement and we wonder if this is
something that can power–up an industry which has not often been ‘pet owner
centric’. Can you elaborate on the essential elements?
RV: We call these elements ‘instincts’ and we expect them to guide our
day-to-day activities:
- We want to be people lovers and pet lovers – happy pet owners mean happy pets and vice versa.
- We want to be excited when we encounter challenges and ask, ‘What would Rin Tin Tin Do’?
- Like ‘service animals’ we live to serve the community of pet owners.
- We believe in the ‘Power of the Pride’ – it’s not about me, it’s about we, it’s about us, it’s about them.
- We want to keep it ‘Wild’ because we know that innovation can drive the industry and fuel our growth.
RV: One of the things you can observe
in great companies is a kind of corporate DNA, ‘the genetic propensity to
behave in a certain manner’. RSA is more
than 300 years old and is committed to keeping people moving forward. The way I have described
our instincts is fresh and new, but you can see the company has maintained many
of these traits over a long and very rich heritage. RSA reaches beyond itself
to illuminate global situations from Polar Bears to Rain-forests and even provides emergency response capabilities to flood victims. At RSA, our reputation, our purpose and our
beliefs will attract like minded people. The Pets Plus Us environment will nurture
and celebrate ‘Best in Show’ elements that deliver positive impact while eliminating
the ‘Pet Peeves’ that become barriers to success for us, the
pet owner and the industry.
INFO: Randy, your literature shows you
are ‘on a crusade to champion pet owner happiness’. Why would you take on
moving the industry toward this goal and
how do you think it can be accomplished?
RV: The why is easy. Every insured pet, regardless of who insures it, is a
safe pet. The day always seems to come, when the pet needs insurance and that is the day pet owners are happy they had foresight to purchase insurance. The how is a bit more
complicated, but it’s not hard. For 11 years I have encouraged and supported
those who say that we need to work collaboratively to achieve pet owner
happiness. As a founding member of NAPHIA, I worked
with other members to bring the North American insurance industry
into alignment. I
also helped found the Summit program which gathers up like minded collaborators
across North America to create healthy communities for pets and people. Pets
Plus Us will intensify and strengthen this crusade for Pet Owner Happiness.
INFO: So what's next?
RV: Over the next few days, the OVMA convention will serve as our ‘coming out party’ and give us a chance to introduce the Pets Plus Us brand to
the industry. Sometime in mid-February, we will introduce a full complement of
accident and illness coverage. Later we will introduce new wellness products that
allow veterinarians to establish conversations and services with pet owners who
desire a program of regular visits to provide a better quality of
life for each pet. However, I am most excited about the new Pets Plus Us Pet
Owner Community that provides pet owners with Air Miles™, resources,
subscriptions, forums, blogs, a photo album and support for conversations with
other pet owners.
INFO: Congratulations Randy! Pets Plus Us
has intriguing components that are good for the pet, good for the
pet owner and good for the pet industry. Tell us what you believe success will look like?
RV: Our ambition is to be the
fastest growing Pet Insurance Company by 2015 and that won’t be the end, but it
may be the end of the beginning!
INFO: Thanks for investing time to
update the industry!
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