Aflac and Trupanion have suspended their pursuit of the Japanese pet insurance market. The decision comes just over a year after the companies formed a joint venture to explore opportunities in Japan.
Following an evaluation of the partnership in Japan, a key market for Aflac, the company has decided to discontinue development efforts. The focus will now shift to the North American pet insurance market, which remains largely underpenetrated, according to a company press release.
Back in 2020, Aflac invested $200 million for a 9% stake in Trupanion. The investment was part of a strategic alliance, aimed primarily at the US market, to offer pet insurance through workplaces. In addition, the partnership was designed to explore the potential of Japan’s growing pet insurance sector.
The plan was to combine Aflac’s strong brand presence, insurance expertise and extensive distribution network with Trupanion’s expertise and leadership in pet insurance. The initial strategy is to launch pet insurance products in Japan in the second half of 2023.
Elsewhere in the country, Japan’s Ministry of Health, Labour and Welfare announced that a new Alzheimer’s drug will be heavily subsidised by public health insurance.
