NAPHIA Regulatory Report: NAIC Pet Insurance Model Law Working Group Update

NAPHIA Regulatory Report

In 2020, the National Association of Insurance Commissioners (NAIC) created the Pet Insurance (C) Working Group to develop a model law that could create a stronger regulatory framework for pet insurance across the United States.

Since that time, NAPHIA on behalf of all of its members has been actively engaged with the Pet Insurance (C) Working Group and working collaboratively with key industry stakeholders and interested parties to complete and approve a final draft model law that, if effectively drafted could provide consistency and clarity for state governments, pet health insurers, key industry stakeholders and, most importantly, consumers.

What NAPHIA is looking for in a proposed model law:

  • NAPHIA favors robust consumer disclosure and transparency because we want happy customers who understand what they are buying.
  • NAPHIA members want to offer a range of products with a variety of price points that meet the unique needs of our consumers. The more prescriptive the model law gets, the less innovation, competition and optionality there will be in the market – which ultimately is bad for pet owners.
  • It is essential that the model law strike the appropriate balance in regulating the pet insurance industry. The goal here is uniformity across the country for a functioning, administrable, consumer-friendly pet insurance market.

As the industry association representing 99% of all pet health insurance coverage in effect in the U.S., we must ensure that the final draft model law is reflective of our unique industry, while allowing our members to remain competitive and able to offer innovative products that are consumer-friendly and affordable.

There is still much work to be done and NAPHIA remains committed to the NAIC’s process and ongoing discussions and collaboration with key stakeholders. This is a fluid and dynamic process with some complex topics involved. NAPHIA will provide updates over time as the process continues, however we will refrain from making public comments or statements while critical items are under deliberation.

Rick Faucher, NAPHIA President and Co-chair Regulatory Committee

Dennis Rushovich, Co-chair NAPHIA Regulatory Committee