The Importance of Company History

Dennis' Diary: Part 3

VPI created the pet health insurance business in the United States in 1982, and over the past 26 years we have seen more than 50 competitors come and go.  Some of these competitors have had the support of major pet industry players and others have been little more than evolving business school projects.

We've seen time and time again that even with strong support and great ideas, many competitors underestimate the amount of work and veterinary expertise required to successfully run a pet insurance company. Still, new companies emerge every year. Currently, there are about nine companies offering pet insurance in the United States.  History indicates that few of these will last more than a couple years, but only time will truly tell.

“Veterinary” In More Than Name

VPI has survived and thrived for several reasons.  First, we are the “Veterinary” Pet Insurance Company, and I don’t believe any of our competitors can match our in-house knowledge of veterinary medicine.  VPI employs 11 veterinarians and more than 60 veterinary technicians.  In our opinion, it is critical that you know what goes on in the veterinary hospitals to develop, price and administer pet health insurance products over the long term.  We are proud of our veterinary professionals and feel fortunate to have them guiding us.

Second, our longevity gives us a competitive advantage.  As the saying goes, we have forgotten more about this business than our competitors know.  We respect our competitors and admire some of the innovative things going on in the business.  Competition is good for consumers and certainly makes us perform at our best at all times. 

“The 1,000 veterinarians that began investing in our company 25 years ago were visionary. We refer to them as our founding shareholders.”

Solid Ownership

Third, VPI has great owners who are committed to this business.  Scottsdale Insurance Company, a wholly-owned subsidiary of Nationwide Insurance, the country’s sixth largest insurance company, owns approximately 66 percent of VPI’s stock.  The Iams pet food company owns about 9 percent of our stock and the remaining 25 percent is owned by nearly 1,000 individuals, most of whom are veterinarians.  Nationwide and Iams support VPI with strong financial backing and business expertise, and our veterinary owners keep us grounded in the profession. 

The 1,000 veterinarians that began investing in our company 25 years ago were visionary. We refer to them as our founding shareholders.  I have talked with many of them and their primary motivation for funding VPI was to create a mechanism to eliminate or reduce economic euthanasia.  In other words, the practice of putting animals down because the owner could not or chose not to pay the medical costs of bringing the pet back to health.

Noble Purpose

This “noble purpose” remains a large part of VPI’s culture today.   Our Chief Veterinary Officer, Dr. Carol McConnell, talks about the thrill she had as a practicing veterinarian creating “magic moments.”  These are the moments when pet and pet owner are reunited in the exam room after time apart.  This is really why VPI is in business.  For 26 years our products have helped create these magic moments at the veterinary office.  You can be assured our number one concern is the health of lovable ones we insure – your pets.

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