Pearson Ham Group’s latest Pet Insurance Price Index reveals a continued reduction in pet insurance premiums.
Lifetime cover for the top 5 priced policies dropped by 1% in May. Despite this, year-on-year prices for Lifetime cover are now 11% higher than last year, marking a significant slowdown from the 21% peak in February 2024. Lifetime cover remains the most popular form of pet insurance. The index shows a 0.5% decrease in pricing for cats, while pricing for dogs saw a larger decrease of 1.1%.
Regional Disparities in Premium Reductions
Regional differences in premium changes were noted, with pet owners in the East of England benefiting from the largest decrease at 1.4%. Year-on-year, the East of England and Northern Ireland have experienced the lowest premium inflation at 8%, whereas the North East has seen the highest at 18%.
Stephen Kennedy, Director of Pearson Ham Group, commented on the findings, “Pet insurers continue to address turbulence in light of rising vet and claims costs, as well as vet ownership consolidation and the recent announcement of the CMA investigation into the market. While it is challenging to determine the precise impact at this stage, it is likely that pet owners will continue to benefit from reducing prices.”
Future Trends in Pet Insurance
The observed decreases in insurance premiums are significant for dog owners who generally face higher insurance costs compared to other pets. The 1.1% drop in dog insurance pricing provides some relief amid ongoing concerns about rising costs in veterinary care and insurance.
The report indicates a trend towards stabilising premium growth, which may continue as pet insurers adapt to market changes and regulatory pressures. The ongoing CMA investigation and consolidation in the veterinary industry could further influence future pricing trends. For dog owners and businesses in the pet care industry, these developments highlight the importance of staying informed about insurance market trends and potential cost-saving opportunities.
While regional disparities exist, the overall trend points to a more stable and potentially decreasing pricing landscape for pet insurance. The industry will continue to watch closely how these trends evolve, especially with external factors like regulatory investigations playing a role in shaping the market.
