Office snacks, casual Fridays, birthdays off — and pet insurance?
Employers seeking to get a competitive edge with prospective employees have lots of options when it comes to benefits. One company seeking to boost its share of that space is U.S.-based Figo Pet Insurance, which offers health-care coverage for cats and dogs that employers can provide as part of a group benefits plan.
Figo, which launched in April 2015, offers up to a 10 per cent discount on insurance premiums to employees of participating organizations, says chief executive officer Rusty Sproat. Some employers simply pass on the discount, others offer payroll deductions to boost the convenience factor and a few will chip in towards the premiums as well. At all organizations, the coverage is optional.
Read: Pet insurance becoming a popular employee benefit
Currently, half of Figo’s business comes through benefits plans, but Sproat anticipates that proportion will increase. “With 65 per cent of [U.S.] employees having at least one pet, this is such an ideal fit.”
He points to the “humanization of pets . . . where we view our pets as family members” as a major reason behind the growth of the business. “Ten years ago, people were euthanizing pets if a bill came in that was $4,000. Now . . . when you look at these specialty hospitals, unless you see the word vet, you wouldn’t even know it was an animal hospital,” he says, referring to facilities that offer services in areas such as oncology, radiology, acupuncture and behavioural therapy.
When Sproat first launched Figo, he thought it would be particularly well with millennials but has since seen employees of all ages signing up.
Read: Voluntary benefits an emerging option for employers
After a recent “proactive rollout with [one company’s human resources] department,” Sproat says eight to 10 per cent of eligible employees signed up for the company’s services.
In addition to health coverage, Figo offers a tracking tool so employees can monitor their pets’ movements in real time.
Figo is currently in talks with some Canadian carriers and hopes to enter the Canadian market next year.