The latest Pet Insurance Price Index from Pearson Ham Group shows continued reductions in Lifetime cover premiums, with the top five policies decreasing by 1% in May.
However, year-on-year prices for lifetime cover are now 11% higher than this time last year, marking a significant slowdown from the peak increase of 21% observed in February 2024.
Lifetime cover remains the most popular type of pet insurance. Specifically, the pricing for cats decreased by 0.5%, while the pricing for dogs saw a more notable decrease of 1.1%.
Regional disparities persist, with pet owners in the East of England experiencing the largest decrease in premiums at 1.4%. On a year-on-year basis, the East of England and Northern Ireland have seen the lowest premium inflation at 8%, while the North East has witnessed the highest at 18%.
Stephen Kennedy, director of Pearson Ham Group, commented on the market dynamics, noting that pet insurers are continuing to address challenges amid rising vet and claims costs, as well as other challenges.
“Pet insurers continue to address turbulence in light of rising vet and claims costs, as well as vet ownership consolidation and the recent announcement of the CMA investigation into the market. While it is challenging to determine the precise impact at this stage, it is likely that pet owners will continue to benefit from reducing prices,” Kennedy said.
Pearson Ham Group is a specialist pricing consultancy that helps clients improve business performance through better pricing.
Elsewhere in the market, a report from Allied Market Research revealed that while the pet insurance market was valued at $10.1 billion in 2023, it is projected to reach $38.3 billion by 2033, growing at a compound annual growth rate (CAGR) of 14.5% from 2024 to 2033.
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