The latest data from Pearson Ham, which suggests pet insurance premiums are increasing quite sharply. Here’s the word;
Pearson Ham Group has released its inaugural Pet Insurance Quarterly Insurance Price Index (Q4 2023), revealing a significant 13% increase in pet insurance prices over the past year. The majority of price rises tool place in the last six months of the year, rising by 12% in that period, with the most substantial spike occurring between August and September.
There was a distinct contrast in price hikes between the different types of animals. Pet insurance for dogs increased by 14% throughout the year, which was twice as much as that for cats (7%) during 2023. The variance was particularly pronounced from August. In terms of the difference between pet insurance products, price increases for lifetime products rose by 12% in the last six months, while prices for maximum benefit products and time limited products only rose by 3% and 2%, respectively.
Furthermore, the data highlights a correlation between coverage levels and price increases. Policies offering annual vet fee limits of £5,000 or more experienced a substantial 19% increase in the latter half of 2023.
Age also played a significant role in pricing dynamics, as insurance for animals over 6 years of age saw a considerable 26% increase throughout the year. In contrast, pricing for puppies and kittens only saw a marginal 1% increase. Pricing for animals under 6 years old remained steady until mid-year, after which greater increases were observed for older pets.
Stephen Kennedy of Pearson Ham Group, said:
“Throughout 2023, the Office for National Statistics (ONS) reported prices for vet and other services for pets increasing by 17.3% so average premium increases of 12.9% observed for Lifetime cover is positive.
“An investigation into vet pricing and customer choice is underway by the Competition Markets Authority (CMA) and we will see if this has any ramifications on pet insurance pricing in the year ahead.”
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