In 2018, it has been reported by the Association of British Insurers (ABI) that a record-breaking £785 million had been paid out by pet insurers to cover the unanticipated costs of owning a pet. This was driven by a significant increase in the average claim size. This upsurge is expected to be caused by the continuous increase of veterinary costs, as the sophistication and cost of treatment increases.
According to the statistics reported by the ABI, in 2018, there were more pets being covered by insurance than any of the previous years before with almost 4.3 million pets being protected. The data also shows that although the average claim has increased by £36 to £793, the average premiums had seen slight decreases for the first time in 8 years. This had decreased to £279 when compared to £281 from the previous year. Over the last decade, it has been reported that the average claim has increased by as much as 75%, whilst the average premium has only increased by 50%.
There is also a concerning level of under-insurance amongst cat owners. Cat owners make up a small proportion of pets being insured even though it is estimated that there is 7.5 million in UK households. The research shows that only 1.3 million cats have been insured with pet insurance when compared to 2.8 million dogs. This potentially leaves the owners of 6.3 million cats to be vulnerable and at risk of expensive vet bills to pay for.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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