The anecdotal evidence is that pet insurance is rising rapidly, but this research suggests that some types of pet cover are pretty static in terms of pricing. Here’s the info;
The latest Pet Insurance Price Index from Pearson Ham Group indicates that premiums for Lifetime cover, the most popular type of pet insurance, experienced a slight decline of -0.2% in August. Despite this, premiums remain 10% higher than they were 12 months ago. The trends in pet insurance premiums show significant regional disparities. London saw the most substantial decrease in premiums in August, dropping by -1.5%. In contrast, Northern Ireland and Scotland continued to experience notable increases, with premiums rising by 1% and 0.7%, respectively.
Pricing trends also vary by animal type. In August, premiums for cat insurance saw a modest increase of 0.3%, whereas premiums for dog insurance decreased by -0.3%. These differences highlight the complexity of the market and the various factors influencing premium adjustments. This comes at a time when a record number of pet owners are opting for insurance to protect their pets. According to the latest data from the Association of British Insurers (ABI), the number of insured pets reached an all-time high of 4.4 million last year, 1.7 million more than a decade ago.
The veterinary market has been under significant scrutiny following the Competition and Markets Authority’s (CMA) formal investigation into the sector. In July, the CMA announced a key procedural step in its investigation, highlighting concerns over weak competition among veterinary practices and the resulting impact on consumer choice and pricing. This ongoing investigation could potentially reshape the landscape of pet insurance pricing in the future.
Insurance pricing movement by region
| Region |
Monthly Movement
|
12-Month Movement
|
|
London
|
-1.5%
|
5%
|
|
East of England
|
-1.2%
|
5%
|
|
South East
|
-0.7%
|
7%
|
|
North East
|
-0.1%
|
16%
|
|
East Midlands
|
-0.1%
|
10%
|
|
North West
|
-0.1%
|
10%
|
|
Yorkshire and The Humber
|
0.1%
|
10%
|
|
South West
|
0.1%
|
7%
|
|
Wales
|
0.2%
|
11%
|
|
West Midlands
|
0.6%
|
10%
|
|
Scotland
|
0.7%
|
13%
|
|
Northern Ireland
|
1.0%
|
6%
|
Frances Luery of Pearson Ham Group, said:
“The slight decline in pet insurance premiums in August may offer some short-term relief to pet owners, but the overall trend remains upward when viewed over the past year. The record number of insured pets reflects a growing recognition of the need for financial protection against rising veterinary costs. With the CMA’s investigation potentially reshaping the veterinary market, we anticipate further developments that could impact pet insurance pricing. The regional and animal type disparities in pricing also highlight the need for insurers to remain adaptable to a dynamic market environment.”
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