Show notes
Why do pet owners so often learn the limits of their insurance when an animal is already ill and the veterinary bill is growing? That trust problem sits at the center of my conversation with Hedda Båverud Olsson, co-founder and CEO of Lassie, a pet insurer that combines coverage with preventative health guidance, rewards, activity tracking, and AI-assisted claims. Hedda's reason for starting Lassie is personal. Her mother is a veterinarian, and Hedda grew up around healthy pets without fully appreciating how much fear and financial pressure many owners experience. After working at McKinsey and EQT, she became absorbed by an idea she describes as putting her mother in every owner's pocket. The aim was to help people understand risks earlier and make better daily choices, rather than waiting until an animal needed treatment. The claims process shows where AI can offer immediate value. Lassie has developed a system called Bark Office that scans an invoice, reads each line, identifies whether the treatment relates to illness or an accident, checks the policy, and decides whether enough information is available. Hedda says that when the system is confident, the money can reach the customer in around six minutes. She reports that approximately 65 percent of claims in Germany follow that route. Automation has limits, especially when a blurry receipt, missing diagnosis code, incomplete journal, unusually expensive treatment, or uncertain policy detail prevents a reliable decision. Those cases can prompt a request for further information or move to a human reviewer. Hedda says customers receive a line-by-line explanation of what was and was not covered, with the option to dispute a result and request another review. She reports an error rate below 2 percent for automated claims and compares it with what she describes as a 5 percent human error rate across insurance. Those are Lassie's figures, but the operating principle is useful across many regulated services: automate clear cases, explain the result, and give uncertain or sensitive cases to a person. We also consider why an insurer should have a role when nothing has gone wrong. Hedda says over 90 percent of Lassie customers use its app and roughly a quarter use it daily. Owners can watch health videos, complete quizzes, follow life-stage guidance, record activity, and earn rewards that can reduce their insurance price. Advice changes according to breed, age, and season, covering subjects such as weight, joint health, toxic foods, nail trimming, and ticks. Lassie also works with Tractive, allowing customers to connect a tracker and bring activity data into the app. Hedda explains that Lassie customers can receive a tracker while paying the Tractive subscription, and existing Tractive users can connect their current device. Owners who do not want a tracker can record activity manually. The feature gives the company another regular point of contact while helping customers follow their pet's routine. That daily relationship has commercial consequences. Hedda says regular app use supports customer loyalty, reduces churn, and raises lifetime value. Preventative actions may also support lower prices for owners. The opportunity is to make insurance useful before a claim, although firms must avoid turning care advice and rewards into confusing conditions or allowing gamification to distract from clear coverage. The conversation moves to the UK, where the supplied briefing estimates that around 20 million pets remain uninsured. Hedda believes culture and distrust may outweigh price alone, comparing the UK with Sweden, where she says approximately 90 percent of dogs and 50 to 60 percent of cats are insured despite higher prices. She also argues that established insurers have been slowed by old systems and disconnected technology, making simple onboarding, mobile service, and automated claims harder to deliver. For Lassie, the test is knowing where automation improves the experience and where it would make a difficult moment worse. Customers may welcome an administrative claim completed in minutes, but few want to speak with a bot when a pet is seriously ill or dying. That distinction between speed and empathy may be the most useful lesson for any business automating emotionally sensitive work. Can insurance become something customers value every day without losing the clarity and human care they need during a crisis? Listen to the episode and share your thoughts with me.