Edna Benton founded the Pet Insurance Company of America (P.I.C.A.) three years after the death of her Shetland collie, Priscilla. Priscilla, who was 11 years old, developed heart and lung trouble, and instead of spending the estimated $1,200 for treatment, Benton had Priscilla put to sleep. Benton reasoned that since Americans are inclined to insure themselves and many of their possessions, they might also be inclined to insure their pets. This is especially true since pets are seen by many as an integral part of the family—sometimes more loyal, obedient, and loving than certain family members.

Benton researched the concept of pet insurance and found there are over 110 million dogs and cats in approximately 65 million households. She also discovered that Americans spend $15 billion a year on pets, for everything from air-conditioned dog houses to designer clothing, toys, vacations, and more recently, beef-flavored beverages and ice cream treats. Benton's research, including data collected from the American Veterinary Society, pet owners, and individual veterinarians, indicates that dog owners spend $95 per year on veterinary care, while cat owners spend $78 per year.

Benton also found that not only are people's attitudes toward pets changing, but increasingly sophisticated and expensive medical treatments, including chemotherapy, cataract operations, and heart pacemakers, are now available. The basic policies, which are underwritten by the Black Hawk Data Group of Dallas, sell for $49 with a $300 deductible clause. For $90 per year, the deductible falls to $100. Each policy insures the pet against catastrophic illness and/or accident. Routine procedures such as examinations, office visits, inoculations, and neutering are not covered.

The policies, currently available only for dogs and cats, are sold only through veterinary offices with the veterinarian acting as an agent for P.I.C.A. Sales to date have been excellent, with over 70,000 policies providing $3,000,000 of coverage on approximately 100,000 dogs and cats. Competition from two other firms is minimal, as the market is expanding by 20–30% per year. P.I.C.A., which is licensed in 47 states, expects to begin offering policies on pets other than dogs and cats within a year.