Pet Owners Should Expect Rises in Insurance Premiums

According to the latest report published by Datamonitor, pet owners in Great Britain might soon face double digit increases in insurance premiums because the cost of vet bills is constantly rising, thus, putting pressure on providers of pet health cover.

Another factor that makes insurance companies raise prices is their inability to grow revenue, which results from poor economic situation in the UK. The downturn made many pet owners save on health cover for their pets, which led to a decline in demand for the services of pet insurers.

Mr. Stephen Ko of Datamonitor said that "some insurers are … offering lower premium rates to new consumers and inflated premiums to customers who have made a claim... this is known as ‘price loading’ and despite increasing prevalence as insurers battle for growth, it is a very risky strategy."

The organisation, however, expects the pet health protection market to be back on track by 2014 as it will be worth £734.3 million.