The latest Pet Insurance Pricing Index from Pearson Ham Group for Q2 2025 has shown that the upward momentum seen in pet insurance premiums at the start of 2025 has stalled. Average top-five quoted prices for Lifetime cover fell by -2.4% in Q2, reversing the 2.2% rise recorded in Q1. That’s the word from Pearson Ham, here are the details;
As a result, market-leading rates are now almost exactly where they began at the start of the year (-0.2% year-to-date). However, over a longer, 12-month view prices remain below last summer’s level, standing -2.7% lower than June 2024. The sharp correction that took place in November 2024 has therefore not yet been clawed back.
Pricing brackets
Price pressure in Q2 was broad-based. For policies offering £2k of vet-fee cover or more, quoted prices continued the steady decline that set in at the start of the year, while the lowest cover band (the only tier to see increases in Q1) also edged down, nullifying much of its first-quarter uplift.
Time Limited and Max Benefit Cover
Time-Limited and Maximum-Benefit policies have maintained their upward trajectory over the past year, underlining how fewer competing brands in these segments is allowing rates to drift higher even as flagship Lifetime prices retreat.
Pricing variations by pet type and breed
In terms of dogs versus cats, both species followed the same general pattern, but dog premiums fell more sharply than cat premiums in Q2, widening the gap that opened earlier in the year.
Premiums for mongrels and moggies have seen the steepest annual declines, whereas cross-breed quotes are now marginally (≈1 %) above levels this time last year.
Every region recorded lower prices in Q2. However, Northern Ireland remains the clear outlier on a year-on-year basis, reflecting mid-2024 increases that have yet to unwind fully.
Frances Luery of Pearson Ham Group, said:
“The cooling of Lifetime prices in the second quarter shows how responsive the pet insurance market has become to competitive pressure. After a brisk start to the year, rate reductions across most cover limits have taken the heat out of premium inflation – although Time-Limited and Maximum-Benefit products continue to move to their own rhythm. For insurers, the lesson is that nimble, data-driven pricing remains essential: consumer sensitivity to price is high, yet there are still pockets where capacity is constrained and margins can erode quickly if not monitored.”
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