Unicorn startup Pet Circle eyes pet insurance sector with “personalised” policies

Australian e-commerce pet supplies retailer Pet Circle has revealed plans to shake up the $1.1 billion Australian pet insurance industry with the launch its next major venture in pet care.

The former Smart50 winner was founded in 2011 by Mike Frizell and James Edwards, who have embarked on a mission to help all pet parents pet better by offering over 10,000 high-quality products in their online pet range and free access to 24/7 vet advice from their in-house Pet Circle Vet Squad.

The launch of Pet Circle Insurance follows the company’s Series C $125 million funding round in late 2021, which catapulted Pet Circle to unicorn status, and its recent fulfilment centre and last-mile delivery expansion in the past year.

Its launch also comes at a time of increasing competition in the pet care space, with new startups and experienced entrepreneurs alike entering the burgeoning industry.

At $30,000 per year to cater for rising vet costs and a single annual excess, whilst eliminating sub-limits so pet parents can claim up to their annual limit, Pet Circle Insurance offers one of the highest policy limits in Australia for dogs.

Pet Circle co-founder and CEO Mike Frizell said pet parents are being underserved by other pet insurance providers and there was a clear opportunity to provide a better policy.

“Our Pet Circle Vet Squad that work in veterinary clinics told us that many pet insurance policies were not up to scratch, with sub-limits catching out pet parents,” he explained.

“In fact, about 85% of Australian pet insurance products impose sub-limits that could restrict pets from receiving the best possible treatment. We decided Pet Circle could do better by providing a more extensive and straightforward pet insurance option for dogs and cats,” he said.

“We have eliminated confusing pet insurance policy features such as sneaky sub-limits on payouts on accidents or illness, to make it simpler and easier for pet parents to take care of their pet’s health.

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“A lot of pet insurance policies in the market still have caps on certain conditions or treatments like paralysis tick, which can have a $1,200 sub-limit but can cost up to $4,336. With Pet Circle Insurance, you don’t have to choose between your finances and your pet’s health.”

Pet Circle Insurance is underwritten by Pacific International Insurance and distributed by Knose Financial Services.

Customers can personalise their policies with different annual limits, annual excesses up to $150, and reimbursements of up to 90%. The retailer will also offer an “optional extras’ package that includes dental care, treatment for behavioural problems, and therapies such as acupuncture, physiotherapy and hydrotherapy.

Policyholders will be able to cancel their insurance at any time, even if a claim has been paid on the policy, while also accessing insurance and general vet advice via the company’s Pet Care Team.

Frizell said every pet owner deserves peace of mind when it comes to insurance. 

“Our ‘Best for Pet’ philosophy underpins everything that we do at Pet Circle,” he added.