What could exist is a company that uses insurance as part of a monetization model, but really focuses on improving pet health.

Most insurance companies are not in the risk-reduction business; they are in the risk-pricing business. As Andrew Tobias pointed out, insurance companies are banks, premiums are deposits, and claims are withdrawals. The object of the game is to have the largest possible pool of assets available for investment, and that goal is not necessarily realized by reducing claims and, therefore, premiums.

Reducing claims reduces costs and so permits premiums to be reduced. But best practices are very difficult to own. If Company A spends a zillion dollars perfecting a doggy work-out, Company B can spend a few grand copying it. That gives Company B a competitive advantage, as in “the pioneer is the guy with the arrow up his ass.” The return on the capital cost of loss reduction just doesn’t clear the hurdle. Because the benefits of loss-reduction strategies are shared by all insurers, loss-reduction is best handled by an industry-funded consortium like Underwriters Laboratories.