The word from Pearson Ham, as they track pet insurance premiums;
The latest Pet Insurance Price Index from Pearson Ham Group shows that pet insurance premiums for Lifetime cover, the most popular form, resumed their upward trend in Q2 with a 1.4% increase. This rise brings premiums to 12% higher than they were 12 months ago, despite the Competition and Markets Authority’s (CMA) formal investigation into the vets market.
The CMA’s initial review highlighted concerns about weak competition and reduced consumer choice. While pet insurance prices dropped in Q1, the increases observed in Q2 have negated these reductions.
The rise in pet insurance premiums is primarily due to increasing costs faced by insurers, driven by larger vet chains acquiring independent practices, reducing competition, and raising veterinary prices. This trend is particularly evident in northern regions, leading to faster cost increases there. While London saw the largest monthly increase in July at 2.4%, the North East and Scotland experienced the largest price hikes over the last 12 months.
Animals aged 4-6 years have seen the highest price rise of 20% over the past year, with crossbreeds experiencing a 23% increase.
Insurance pricing movement by region
| Region | Monthly Movement | 12-Month Movement |
|
London
|
2.4%
|
8%
|
|
East of England
|
1.6%
|
8%
|
|
South East
|
1.6%
|
11%
|
|
North West
|
1.5%
|
13%
|
|
South West
|
1.4%
|
9%
|
|
North East
|
1.3%
|
19%
|
|
West Midlands
|
1.3%
|
11%
|
|
Yorkshire and The Humber
|
1.2%
|
13%
|
|
East Midlands
|
1.1%
|
12%
|
|
Northern Ireland
|
1.1%
|
8%
|
|
Scotland
|
1.0%
|
15%
|
|
Wales
|
1.0%
|
14%
|
Frances Luery of Pearson Ham Group, said:
“Pet owners will be surprised by the continued rise in pet insurance premiums, especially given the CMA’s announcement of its investigation into the vet sector. However, the increase highlights the ongoing pressures within the pet insurance market. It may be that prices have now stabilised but much depends on the CMA’s future actions and how they decide to proceed to address any lack of competition within the market. If any action that the CMA takes reduces the costs seen in the veterinary market, we would expect pet insurance pricing to decrease accordingly.”
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