Pethealth, a provider of medical insurance for dogs and cats to pet owners, has signed a four-year agreement with Allflex USA, which provides Pethealth with access to Allflex's RFID microchip technology for companion animal distribution throughout the US and Canada.

Under the agreement, Pethealth will be provided with fixed prices throughout the term below its 2009 pricing, with additional volume discounts.

According to Pethealth, companion animal microchipping is an efficient driver to its insurance and non-insurance operations alike, with respect to pet owner and pet data collection and aggregation. It currently has around 3.4 million registered subscribers in its 24PetWatch database and its microchip platform is built into its PetPoint animal management software, which is used animal management application in North America.

In addition, agreement also provides the company with access to both FDXA and FDXB microchips at its discretion. It sells only FDXB microchips to veterinary clinics and shelters in Canada in support of the National Companion Animal Coalition’s recommendations and provides animal welfare organisations, veterinary clinics and breeders in the US with a choice of purchasing either FDXA or FDXB microchips under 24PetWatch brand.

The companion animal microchip is a transponder that has a number burnt on it which can be read at a particular frequency. It is implanted in tissue between shoulder blades of cats and dogs. The companion animal microchipping is supported by a network of readers that are maintained by animal welfare organisations and veterinary clinics throughout Canada and the US.

Mark Warren, president and CEO of Pethealth, said: “This agreement provides us with certainty of supply through 2013 and certainty of price with some very attractive discounts based on our anticipated growth over the same period. It also gives us the confidence to invest in the further growth of our program, which, at over one million microchipped pets annually, ranks as one of the largest companion animal programs in the world.”