Rise in pet insurance policies could be causing ‘unnecessary confusion’

A rise in the number of pet insurance policies on the market could be causing ”unnecessary confusion” for consumers.

That was according to financial services firm Defaqto, which said that there were more propositions on the market than recognised dog and cat breeds.

Figures from its Matrix database in May 2024 show that while there are 262 such breeds in the UK, there was also 529 policies currently on the market. 

Anna-Marie Duthie, pet insurance expert at Defaqto, said: “Pet insurance policies have always been a complex proposition and the current volume of options could be causing further confusion for consumers.

”It has long been the case that there are a lot of factors for pet owners to consider when choosing a product.

“Not least, the most appropriate type of policy for their needs from lifetime, time limited or maximum benefit options, as well as selecting the correct cover limit and getting to grips with co-insurance excesses.

”However, these considerations are heightened now there are such a large number of product options to choose from.”

Choice

Figures also showed that the number of dog insurance policies has grown by 82% over the past 10 years, whilst cat insurance was up by 78%

Despite the growing number of policies, however, the number of brands for pets has reduced by more than 30%.

Defaqto said this gave ”pet owners fewer insurers to choose from”.

Back in March, the Competition and Markets Authority (CMA) said it had provisionally decided to launch a formal market investigation focused on its provisional analysis of issues in the sector.

The regulator’s initial review highlighted several concerns, including potential weak competition in certain areas and concerns over possible diminished competition and consumer choice.

“Time will tell if pet insurance comes under the spotlight, with just last month the CMA announcing it will conduct a formal review into the veterinary sector after concerns that there was diminished competition and consumer choice,” Duthie said.