National Animal Insurance will consolidate and streamline the selling of life and liability insurance products for high-value show quality horses via an internet platform. There are 3.5 million horses active in competitive showing or racing in the US, with only 40% currently insured. The average annual premium is $705, creating an insured base of $987 million with a total addressable market of $2.5 billion. The process today is low-tech, paper-driven, and highly labor/time intensive. Our solution will be automated, nearly paperless, fast, and customer friendly. Additional growth will come from adding canine, avian and other exotic animals to our product mix in future years.

 

Market Opportunity

The high-end animal insurance market has changed very little in the past 20 years, while animal values and perceived liability have steadily risen. Since this market is served by local agents who typically do not specialize in animal life and liability and are usually not licensed in multiple states, the industry has experienced very little technical or marketing innovation in the past two decades.

 

Problems And Our Approach:

Problem	Our Solution
Horse insurance marketing is very traditional, staid and unbranded.	Offer a hip, user-friendly, automated, on-line approach targeting females 18-49. Establish a strong national brand.
The market is fragmented. Few agents are licensed in more than one state.	Our national approach will consolidate the market by leveraging technology and partnering with an established broker to sell in all states.
Industry generates an enormous amount of paperwork, and the process can take days to secure a policy.	Create a paperless process and real-time platform for the purpose of securing competitive quotes, applying for and paying for the policy on-line.

 

Market

There are over 10 million horses in the US. Our target market is the 3.54 million (Deloitte for the American Horse Council Foundation, 2005) participating in showing or racing. The average annual policy premium is $705(average of four sources). The initial addressable market is $2.5billion.  Currently, 40% of the show and racing horses are insured (internal study 2008, and USEA study). Our approach to the market will be:

• Consolidate & Automate the Industry: Offer a turn-key operation with the first-of-its-kind online quotation/application process. This will engage customers to obtain a quote, provide an upselling opportunity (major medical riders, barns, care & custodial insurance, etc.) in an effort to convert the 1.4 million currently insured policyholders and the 2.1 million uninsured horses.

• Create a national brand:We will establish a national brand which resonates with the key demographic of our target market: females 18-49. An internal study revealed 71% of our target market has never tried to get a competitive quote.

Competition

We have identified several hundred agent/brokers offering horse insurance in the US. Generally, the majority of these agencies are focused on other product lines and other market segments, although some do promote themselves as horse specialists.

 

Competitive Facts:

• Only 18 are licensed in more than 3 states
• Only 5 accept credit card payment
• None offer real-time online quotes
• No specific effort to target the key 18-49 female demographic

Investment Opportunity

National Animal Insurance is currently valued at $2.0 million based on forward revenue projections and comparable valuation of other businesses in this market segment. NAI is currently seeking $500,000 in bridge financing to develop our web platform, establish our brand identity, fund our go-to-market strategy and provide working capital.

 

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