Net Promoter Score Benchmarks for Pet Insurance: What a Good NPS Looks Like for an MGA

NPS is the single number that tells you whether your customers will grow your business or shrink it. Promoters refer friends, renew automatically, and buy add-ons. Detractors cancel, complain publicly, and warn others away. For pet insurance MGAs, understanding and improving NPS is a direct path to profitable growth.

Talk to Our Specialists

What Are the Fundamentals of NPS for Pet Insurance?

NPS (Net Promoter Score) measures customer loyalty by asking one question: "How likely are you to recommend us to a friend?" Scores range from -100 to +100, and pet insurance typically benchmarks higher than traditional insurance (30–50 average) because of the emotional bond owners have with their pets.

1. How NPS Works

One question: "On a scale of 0–10, how likely are you to recommend [Company] to a friend?"

Score	Category	Behavior
9–10	Promoter	Loyal, refers friends, buys more
7–8	Passive	Satisfied but not enthusiastic, vulnerable to competitors
0–6	Detractor	Unhappy, at risk of cancelling, negative word of mouth

NPS = % Promoters – % Detractors

Range: -100 (everyone is a detractor) to +100 (everyone is a promoter)

2. NPS Benchmarks

Industry/Category	Average NPS	Good	Excellent
Insurance (overall)	20–35	40–50	50+
Pet insurance	30–50	50–60	60–70+
P&C insurance	15–30	35–45	45+
Health insurance	10–25	30–40	40+
Auto insurance	25–40	40–50	50+
SaaS/tech	30–45	50–60	60+

Pet insurance tends to score higher than traditional insurance because of the emotional bond with pets and the tangible benefit of claims coverage.

How Does NPS Impact Business Performance and Growth?

NPS directly predicts retention, referral rates, and revenue growth. Promoters retain at 90–95% and refer at 15–25%, while detractors retain at only 40–60% and generate negative word of mouth. Every 10-point NPS increase correlates with 3–5% retention improvement and 10–15% more referrals.

1. The Retention Connection

NPS Category	Annual Retention	Referral Rate	LTV Multiplier
Promoters (9–10)	90–95%	15–25% refer	2.5–3x base
Passives (7–8)	75–85%	3–5% refer	1.0x base
Detractors (0–6)	40–60%	0% (negative WOM)	0.3–0.5x base

2. NPS Impact on Growth

NPS Score	Expected Annual Growth	Notes
-10 to 10	Declining or flat	Detractors outweigh promoters
10–30	Slow growth (5–10%)	Average insurance territory
30–50	Moderate growth (10–20%)	Above-average experience
50–70	Strong growth (20–30%)	Referrals driving organic growth
70+	Exceptional growth (30%+)	World-class experience, viral growth

3. Revenue Impact

Every 10-point NPS increase correlates with:

• 3–5% improvement in retention
• 10–15% increase in referral rate
• 5–10% increase in LTV
• 2–4% increase in organic growth rate

How Should You Measure NPS Effectively?

To measure NPS effectively, survey customers at key touchpoints 30 days post-purchase, 7 days after claim resolution, 60 days before renewal, and at policy anniversaries. Always include a follow-up question asking "What is the primary reason for your score?" because that open-ended response is where the actionable insight lives.

1. Survey Timing

Trigger	When to Survey	What It Measures
Post-purchase	30 days after policy start	Onboarding experience
Post-claim	7 days after claim resolution	Claims experience
Pre-renewal	60 days before renewal	Ongoing satisfaction
Annual	Policy anniversary	Overall relationship
Post-support interaction	24 hours after ticket closed	Service quality

2. Survey Design

The NPS question: "How likely are you to recommend [Your Brand] to a friend or family member who owns a pet?"

Follow-up (critical): "What is the primary reason for your score?"

The follow-up question is where the actionable insight lives. Categorize responses to identify systemic issues.

3. Response Rate Optimization

Tactic	Impact on Response Rate
Email survey (simple, 2 questions)	15–25% response
In-app survey (after positive interaction)	20–30% response
SMS survey (short, one-click)	25–35% response
Post-claim survey (high engagement moment)	30–40% response
Offering incentive (raffle entry)	+5–10% response

Target: 20%+ response rate for statistical significance.

4. Segmented NPS

Measure NPS by segment to identify specific issues:

Segment	Why It Matters
By claim status	Filed claim vs no claim
By plan tier	Basic vs standard vs premium
By tenure	Year 1 vs Year 2+
By channel	Direct vs aggregator vs referral
By species	Dog vs cat
By premium change	Rate increase vs flat

What Are the Key NPS Drivers in Pet Insurance?

The single biggest NPS driver in pet insurance is the claims experience fast, fair claims processing with clear communication can swing NPS by 20–30 points. On the detractor side, claim denials (especially first claims) and unexpected premium increases are the most damaging, capable of dropping NPS by 30–50 points.

1. What Creates Promoters

Driver	Impact on NPS	Controllability
Fast, fair claims processing	Very high (+20–30 points)	High
Clear communication	High (+10–15 points)	High
Easy-to-use portal/app	Medium (+5–10 points)	High
Competitive pricing at renewal	High (+10–15 points)	Medium
Proactive pet health content	Medium (+5–10 points)	High
Quick customer service	Medium (+5–10 points)	High

2. What Creates Detractors

Issue	Impact on NPS	Frequency
Claim denial (especially first claim)	Very high (-30–50 points)	15–25% of claimants
Unexpected premium increase	High (-20–30 points)	Annual
Slow claims processing	High (-15–25 points)	Variable
Poor customer service	Medium (-10–20 points)	Variable
Confusing policy terms	Medium (-10–15 points)	Ongoing
Pre-existing condition disputes	Very high (-30–50 points)	5–10% of claimants

3. The Claims Experience Effect

Claims experience is the single largest NPS driver:

Claims Experience	NPS
Filed claim, positive experience	70–80+
Never filed a claim	40–50
Filed claim, neutral experience	25–35
Filed claim, negative experience	-20 to -40

Key insight: The best way to create promoters is to deliver excellent claims experiences. The fastest way to create detractors is to handle claims poorly.

How Can You Improve Your NPS Score?

Improving NPS starts with diagnosing where you stand. Below 20 is a crisis requiring immediate claims and service audits. Between 20–40, focus on claims speed and communication. Above 40, activate promoters through referral programs and personalized outreach. At every level, a closed-loop feedback process for detractors is essential.

1. Priority Actions by NPS Score

NPS below 20 (crisis):

• Audit every claims denial
• Review customer service response times
• Address billing/pricing surprises
• Simplify policy language
• Create closed-loop detractor follow-up

NPS 20–40 (average):

• Improve claims processing speed
• Enhance communication throughout claims
• Proactive renewal pricing communication
• Invest in self-service (portal/app)
• Launch voice-of-customer program

NPS 40–60 (good):

• Activate promoters (referral program)
• Personalize communications
• Add proactive pet health outreach
• Create loyalty program
• Optimize onboarding experience

NPS 60+ (excellent):

• Scale referral program
• Use promoter testimonials in marketing
• Maintain excellence while scaling
• Innovate on customer experience
• Share success stories publicly

2. Closed-Loop Feedback

For every detractor (score 0–6):

1. Alert — Immediate notification to customer success team
2. Outreach — Personal contact within 24–48 hours
3. Listen — Understand the specific issue
4. Resolve — Fix the problem if possible
5. Follow up — Confirm resolution and re-survey
6. Systemic fix — Address root cause to prevent recurrence

Closed-loop programs convert 30–50% of detractors to passives or promoters.

For KPI metrics including NPS within your broader metrics framework, see our guide. For retention strategies driven by NPS insights, see our retention playbook.

Talk to Our Specialists

Frequently Asked Questions

1. What is a good NPS for pet insurance?

Industry average is 30–50. Good: 50–60. Excellent: 60–70+. Below 20 indicates significant issues.

2. How does NPS relate to retention?

Promoters retain at 90–95%, passives at 75–85%, detractors at 40–60%. Every 10-point increase correlates with 3–5% retention improvement.

3. When to start measuring NPS?

From your first customer. Survey at 30 days post-purchase, post-claim, pre-renewal, and annually.

4. What drives high NPS?

Claims experience is #1. Also: fast service, clear communication, transparent pricing, and proactive pet health content.

5. How often should you survey customers for NPS?

Survey at multiple touchpoints but space surveys at least 90 days apart per customer to avoid fatigue. Key moments include post-purchase, post-claim, pre-renewal, and policy anniversaries.

6. What is a closed-loop feedback process for NPS detractors?

Every detractor triggers an alert to your customer success team, who contacts the customer within 24–48 hours to understand the issue, resolve it, and follow up. This converts 30–50% of detractors to passives or promoters.

7. How does claims experience affect NPS scores?

Claims experience is the largest single NPS driver. Positive claims experiences produce NPS of 70–80+, while negative experiences result in -20 to -40. Policyholders who never file sit at 40–50.

8. Can NPS predict revenue growth for a pet insurance MGA?

Yes. MGAs with NPS of 50–70 typically see 20–30% annual growth from organic referrals. Every 10-point NPS increase correlates with 10–15% more referrals and 5–10% higher lifetime value.

External Sources

• https://www.netpromoter.com/
• https://naphia.org/

Internal Links

• Explore Services → https://insurnest.com/services/
• Explore Solutions → https://insurnest.com/solutions/