Pearson Ham Group’s Pet Insurance Pricing Index for the third quarter indicates ongoing increases in premiums, particularly for the most common type of pet insurance which is lifetime cover.
In Q3 2024, lifetime cover premiums rose by 1.8%, with a 1.4% increase in July alone – the largest monthly spike since January. Over the past 12 months, lifetime cover premiums have seen a cumulative 7.7% uptick, shifting from the robust growth observed in late 2023 to a steadier upward trend through 2024.
While lifetime cover premiums have grown consistently, time limited and max benefit policies have experienced sharper increases. Year-to-date, premiums for max benefit policies have jumped by 13%, with time limited policies close behind, growing 12%.
The report also shows that premium growth varies by pet age and type. For pets younger than one year, lifetime cover premiums have remained largely stable over the last 12 months. However, premiums for pets older than one year have increased by 11% as of September.
Additionally, premium adjustments have impacted dogs more than cats, with a notable drop in dog premiums in March. Since the second quarter, though, premiums have moved up in alignment across pet types, with cat premiums rising 9% and dog premiums up 7% over the past year.
The data also points to distinct regional variations in pet insurance pricing, with the most significant premium hikes recorded in the North East and Scotland, where rates climbed by more than 11% over the past year. By contrast, London saw more modest increases, with premiums leaping by 3.6%.
Frances Luery from Pearson Ham Group noted: “The overall trend remains upward for pet insurance premiums over the past year. Despite the CMA’s investigation, which may influence the veterinary sector, premium growth persists.
“We anticipate further developments in the coming months that could impact pet insurance pricing. The differences in premiums by region and pet type underscore the importance of insurers remaining agile in response to an evolving market landscape.”
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