Local vet prices key to pet insurance trends, says analyst

Local veterinary markets remain a key driver of pet insurance pricing trends despite an overall increase in premiums, new analysis has suggested.

The latest Pet Insurance Pricing Index, issued by the Pearson Ham Group, showed the cost of lifetime cover rose by 0.4% in February, with little difference between the rates for cats and dogs.

But while prices are still lower than at the same point last year, the consultancy firm warned that the trend of falls seen in 2024 now appears to be over.

And, with premiums rising by 0.7% in London compared to just 0.1% in Wales, officials say local conditions are still influencing the costs faced by owners.

Narrowing gap

Frances Luery, from the group, said: “The steady rise in pet insurance premiums in February marks a shift from the more pronounced declines we saw last year.

“While prices are still slightly lower than they were 12 months ago, the narrowing gap suggests insurers are adjusting their pricing strategies in response to claims trends and market conditions.

“Regional disparities remain a key trend, with London experiencing the highest increases.

“Whether this upward trajectory continues will largely depend on claims costs, underwriting decisions and, importantly, the level of competition in each local market.”

Rising trend

Research has indicated a broadly rising trend in pet insurance cover over recent years, with Cats Protection’s Cats and Their Stats report indicating half of owners had cover in 2024, up from 40% in 2020.

Meanwhile PDSA’s Paw Report found nearly two-thirds (64%) of dog owners had their pets insured last year, compared to 55% in 2017, with rising numbers also seen among cat and rabbit owners.

But that document also found a significant proportion of owners whose pets were uninsured believed policies were too expensive, while 4% of cat owners said they had cancelled premiums for financial reasons.