Chewy, an online pet product retailer, has announced a partnership with Trupanion to join the pet insurance industry.

Trupanion's stock increased by more than 29% as a result of the news. Chewy's stock has climbed 3% since Monday's close.

Chewy will collaborate with Trupanion to provide its more than 20 million clients with a suite of pet health insurance and wellness plans, including coverage for accidents, diseases, and chronic ailments.

Chewy's relationship is the next step in its expansion of pet health care products and services, following the launch of Practice Hub, a veterinary marketplace platform, in September.

"By partnering with Trupanion, Chewy will be able to leverage Trupanion's patented software to pay veterinarians directly, thus reducing out-of-pocket expenses and increasing access to care," Chewy explained.

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"The launch of customized care plans specifically designed for our customers is an important enhancement to the Chewy Health ecosystem, advancing our mission to make pet healthcare more affordable and accessible for all pet parents," said Mita Malhotra, CEO of Chewy Health.