Cat microchipping could help insurers ‘enhance fraud detection’

Legislation that has forced cat owners to microchip their pet could help insurers “enhance fraud detection”.

That was according to Andrew Leal, chief executive of pet insurtech Waggel, who said that the law can help insurers better verify the identity of insured’s cats.

Back in March 2023, the government announced it had made cat microchipping compulsory in a bid to make it easier for lost cats to be reunited with their owners.

All owners had to do this by 10 June 2024.

Leal said that ”there has been a long discussion that microchipping could be recognised as a measure to enhance fraud detection”.

”It addresses concerns where individuals might insure multiple similar pets under a single policy,” he said.

”By implementing microchipping, insurers could verify the identity of insured pets, thereby reducing the likelihood of fraudulent claims.”

Policies

Owners found not to have microchipped their cat after 10 June will have 21 days to have one implanted, or may face a fine of up to £500.

Leal said it was ”unlikely that an insurer would void a policy solely due to the absence of microchipping”.

“[However], given that it is now law, most insurers will have a clause regarding legal legislative changes that may require future revisions to policy requirements,” he added.

“Microchipping may become a requirement to prove proof of purchase for this coverage in the future, although it is not currently enforced.”