The February 2025 Pet Insurance Pricing Index from Pearson Ham Group reported a 0.4% increase in premiums for Lifetime cover, the most common type of pet insurance.
This adjustment brings prices to 2% below their level from a year ago, indicating a shift away from the declines seen in the previous year. Frances Luery (pictured), of Pearson Ham Group, said that the narrowing gap suggests that insurers are adjusting their pricing strategies in response to claims trends and market conditions.
Premium changes were similar across pet types, with rates rising by 0.5% for cats and 0.4% for dogs during the month.
Regional differences remained notable. London recorded the highest increase, with top-five premiums rising by 0.7%, while Wales saw the smallest increase at 0.1%. These variations reflect local veterinary market influences on pricing, according to the report.
“Regional disparities remain a key trend, with London experiencing the highest increases,” Luery said. “Whether this upward trajectory continues will largely depend on claims costs, underwriting decisions, and, importantly, the level of competition in each local market.”
In November 2024, Pearson Ham Group saw the largest monthly drop in pricing since December 2022, when the company’s Pet Insurance Pricing Index report showed that lifetime cover premiums fell by more than 4% during the month.
Luery attributed the bulk of the drop to significant reductions from two of the largest pet insurance providers, which had a ripple effect of lowering market prices and intensifying competition.
According to a report from Allied Market Research in 2024, the pet insurance market is expected to reach $38.3 billion by 2033, growing at a compound annual growth rate of 14.5% from 2024 to 2033.
Europe accounted for around two-fifths of pet insurance market revenue in 2023, which was mainly due to the high adoption rates of pets in the UK, Italy, France, Russia and Germany, as well as the variety of policy coverage options available.
This projection is driven by the increase in the number of pet owners and their willingness to spend on pet healthcare. The study also found the trend of pet humanization and the strong emotional bond between owners and their pets as contributing factors.
