Insurance market going to the dogs (and cats)

Smoke, the picture of canine health, but insured.

Warren Buffett is said to invest only in businesses he understands, which makes me certain he must be a pet owner.

According to a story this week from TheStreet.com, Berkshire Hathaway company Central States Indemnity of Omaha announced last week that it was going to partner with Nestle to market pet insurance products. According to the article, Central States will underwrite pet health plans written by a pet health insurance division formed last year by Nestle's Purina unit.

The story goes on to note that this summer Aetna teamed with Pets Best Insurance Services to provide discounted rates on pet insurance plans to a number of business and Chambers of Commerce in Connecticut and Western Massachusetts. And Progressive, according to the article has been promoting a policy feature covering pets injured in car accidents.

The point is, while the pet health insurance market is small today, with 60% of U.S. households having at least one pet and the state of the art of pet health care—and the accompanying cost—constantly advancing, pet health insurance is seen as a market primed for growth.

Our dog, Algren, had various health issues in his senior years that required ongoing treatment and various regular and special examinations. When he was about nine, Algren developed an autoimmune disorder that almost got him before we found a wonderful veterinarian who was able to diagnose the illness and—though for a time things looked grim—ultimately treated it successfully.

Over the following years, the regular examinations intended to ensure that the autoimmune disorder was being held in check served to turn up various other issues that had arisen. Algren developed a high triglyceride count, which required regular medication. Later, he developed an irregular heartbeat, which also was treated with regular medication, but not before a visit with a canine cardiac specialist who administered a doggy EKG.

We begrudged Algren none of that, of course, and in fact were happy that we had the resources to provide him the care that meant that—until we finally had to say goodbye in the summer of 2008—we were able to enjoy several quality years with our wonderful family member and friend that we wouldn't have experienced without the fine veterinary care Algren received. But, those resources we called upon to provide that care didn't include pet health insurance.

So, when we brought Algren's successor, Smoke, home late last year, we quickly enrolled him in a pet health plan. Just a couple months shy of two-years-old, Smoke is the picture of canine health, and—knock on wood—we won't have to call on his health insurance until his golden years. But, I'm glad to know it's there, just the same.

And I'm pretty sure Warren Buffett has owned a pet or two.