The Pearson Ham Group’s Q3 2024 Pet Insurance Pricing Index reveals a steady increase in premiums for Lifetime cover, the most widely chosen pet insurance option.
Lifetime premiums rose by 1.8% during Q3, with the largest monthly increase in July at 1.4%, marking the highest rise since January. Over the past 12 months, Lifetime cover premiums have grown by 7.7%, shifting from rapid price escalation in late 2023 to a more gradual increase in 2024.
Rising Premiums for Time Limited and Max Benefit Policies
In contrast to Lifetime policies, Time Limited and Max Benefit insurance options have faced more significant price hikes this year. Since January, Max Benefit policies have seen a 13% increase, while Time Limited policies recorded a 12% rise. These figures highlight the pricing pressures affecting different types of pet insurance as inflation impacts the pet insurance sector.
Premium increases also vary according to a pet’s age and type. While Lifetime premiums for pets under one year old have remained relatively stable, premiums for pets older than one year have risen by 11% as of September. Dogs have experienced greater price fluctuations than cats, particularly in March when dog premiums briefly decreased. Since Q2, however, premium increases have been more evenly distributed across both types, with a 9% increase in premiums for cats and a 7% increase for dogs over the past year.
Regional Disparities in Premium Increases
The Q3 report shows substantial regional differences in premium inflation, with the North East and Scotland recording the highest increases, exceeding 11% over the past year. Meanwhile, London experienced a more modest annual increase, with premiums rising by 3.6% as of September.
Frances Luery from Pearson Ham Group commented on the findings, noting, “The overall trend remains upward for pet insurance premiums over the past year. Despite the CMA’s investigation, which may influence the veterinary sector, premium growth persists. We anticipate further developments in the coming months that could impact pet insurance pricing. The differences in premiums by region and pet type underscore the importance of insurers remaining agile in response to an evolving market landscape.”
