Pet insurance premiums continue to rise in 2024

Pet insurance premiums are now more than 20% higher compared to last year following slight price rises in February 2024, according to new figures published by Pearson Ham.

The pricing specialist’s insurance pricing index, which was published yesterday (14 March 2024), showed that lifetime cat insurance saw a 2% increase during the month, while dog cover recorded a smaller 0.1% increase.

It meant, however, that average pet insurance prices have now risen by 21% since February 2023.

The bulk of the surge came during the last six months of 2023, with costs increasing by 12% between July and December.

This was driven by a “substantial spike” between August and September, Pearson Ham claimed.

CMA

The findings came after the Competition Markets Authority (CMA) launched a review and issued a call for information into business practices in the act of veterinary services for household pets in the UK in September 2023.

At the time, the CMA said it wanted to hear more from pet owners and vet practitioners’ experience of pricing services.

This included whether pet owners were aware of how much a treatment would cost and if they would pay for it themselves or through insurance.

Stephen Kennedy, who is a director at Pearson Ham, said: “The CMA has launched a consultation to seek views from the sector on the proposal to launch a market investigation into the vet market, but the immediate impact on insurance pricing remains uncertain.

“While our data reveals a slight 0.5% increase in lifetime cover prices for February, the broader year-on-year movement is raising considerable concern, as outlined by the CMA.

“Nevertheless, it is essential to recognise the multitude of factors at play in determining pet insurance pricing.”