Pet insurance, the 'icing on the cake' in benefits?

Employers have long recognized the value of offering comprehensive benefits when the going gets ruff for their plan members. And for a growing number of employees, that now includes pet insurance, something that was rarely considered part of a benefits package just a few years ago.

Now, it could very well be possible that pet insurance eventually falls under family building benefits. Particularly, as Michelle Yates, senior vice president of business development at OnePack Plan explained, employees now think of their pets as furry dependents.

Yates sees the inclusion of pet insurance in workplace benefits as a logical response to the changing expectations of today’s workforce. She noted that pet insurance can ease financial stress and support mental well-being, notably when unexpected veterinary bills arise.

“People are busy. They spend a lot of time at work and they don't have time to shop around for pet insurance. More employees are looking to their employer to help them with ancillary benefits that provide them with the right kind of coverage, including what they can and can’t afford. It only made sense that we would marry the two, offering an insurance product that provides medical coverage for the employees’ pets as a worksite benefit,” explained Yates. “Pet insurance is really the icing on the cake for a lot of people.”

The COVID-19 pandemic changed the workplace landscape, notably as employers are still struggling to catch up in every area. Many people impulsively acquired pets during lockdowns, driven by isolation and mental health strain, without fully considering the long-term financial responsibility. Now, with life returning to pre-pandemic routines, pet ownership has collided with economic reality – and employers now having to bear the brunt of financial wellbeing.

Yates pointed to the numbers that back this up. According to recent research from OnePack Plan, 36 per cent of Canadians say they've experienced distress over the cost of pet health care, and 27 per cent would not be able to pay a hypothetical $5,000 pet emergency or consider it to “be a huge financial strain.”

Additionally, many employees place pet health care on par with human health coverage with 59 per cent of Canadians consider their pets to be as or almost as important as their family’s health insurance coverage, she noted.

Meanwhile, she highlighted data from OnePack Plan that found 71 per cent of pet owners prefer pet-friendly workplaces, and 82 per cent of HR professionals link pet ownership to mental health benefits. For Yates, recognizing the role of pets in employees’ lives leads to stronger engagement across the board, even among non-pet owners.  Additionally, 96 per cent personally experienced improved health from owning a pet.

As for the real business case for employers juggling budgets and managing retention, is pet insurance a cost or an advantage? Yates believes employers need to acknowledge the emotional value pets hold for their employees, even in workplaces where animals can’t be physically present. While not every work environment can be pet-friendly, like warehouses, there are still ways to support that connection.

“Close to 90 per cent of employees appreciate an employer that offers some sort of pet perk... even if they don’t own a pet,” she said. “If you want to attract top talent, and more importantly, retain top talent, you need to be offering a very competitive benefits package.”

“Pet-friendly policies reflect a commitment to innovation and flexibility in the workplace. It’s about recognising that a pet’s companionship can bring joy, reduce stress, and ultimately enhance productivity and creativity of teams at all types of organizations,” said Eric Coulson, OnePack Plan’s senior managing director, Canada in the report.  

Yates explained OnePack Plan, which recently just launched in Canada, offers a group-rate pet insurance model, allowing employees to pay through payroll deductions, which makes coverage more accessible and helps reduce the strain of veterinary expenses. She noted that demand is high, calling it “one of the most requested employee benefits.”  

OnePack Plan is seeing growing uptake with pet insurance, Yates noted, with “thousands of employers who have opted in,” she said. “We have about a 50 per cent growth trajectory every single year.”

Yates also shared that employers have the option to fully fund or offer employee-paid plans, and both models show benefit. For those who may be skeptical or unsure, she suggests employers start small like taking a survey among their members to see if there’s even the slightest interest.   

And as to whether there’s any downside or critical flaws in pet insurance, Yates concedes the only real obstacle is time and bandwidth for plan sponsors.

“Pet insurance is a nice to have, not a need to have,” she said. “We know it might not be a priority. Pension plans will always take first priority... but what happens if your competitor offers it?” she asked. “If all things are equal like pay, vacation and they have pet insurance, who do you think is going to win?”