The latest Pet Insurance Price Index from Pearson Ham Group reveals a shift in the pet insurance market, with prices returning to moderate growth after initial declines earlier in the year.
The top five priced policies for Lifetime cover, the most popular form of pet insurance, saw a 0.7% increase in June. This marks a 12% increase compared to the same time last year.
Factors Influencing Price Changes
There are notable regional differences in the movement of pet insurance prices. The North East experienced the largest monthly increase in June at 1.5% and the highest year-on-year increase at 18%. In contrast, Northern Ireland was the only region to see a decrease in insurance pricing, with a 0.7% drop. The South West saw the lowest increase in the month at 0.2%.
Stephen Kennedy of Pearson Ham Group commented on the recent changes: “Price reductions in pet insurance premiums observed after the CMA announced an investigation into veterinary practices have been short lived. This shift may be due to increased veterinary costs and a rise in claims frequency, which have started to push prices up again. As these cost pressures continue to impact the market, pet insurance prices may well return to sustained upward pressure.”
Kennedy’s insights highlight the ongoing dynamics within the pet insurance market, where various factors including veterinary costs and claim frequencies play a significant role in determining pricing trends. As pet owners navigate these changes, keeping abreast of regional variations and market conditions will be crucial.
