Aflac and Trupanion have discontinued their pursuit of the Japanese pet insurance market. The decision comes a little over a year after initiating a joint venture aimed at exploring opportunities in Japan.
Following an assessment of the partnership in Japan, a key market for Aflac, the firm decided to cease development efforts. The focus will now shift towards the North American pet insurance market, which remains largely underpenetrated, as per a news release from the company.
Back in 2020, Aflac invested $200 million for a 9% stake in Trupanion. The investment was part of a strategic alliance, primarily aimed at the US market, to offer pet insurance through workplaces. Additionally, the partnership was set to explore the potential in Japan’s growing pet insurance sector.
In November 2022, the companies launched their joint venture in Japan, planning to combine Aflac’s strong brand presence, insurance expertise, and extensive distribution network with Trupanion’s specialized knowledge and leadership in pet insurance. The initial strategy involved introducing pet insurance products in Japan during the second half of 2023.
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