Pet insurers paid out a record-breaking £785 million in 2018 to cover the unexpected costs of owning a pet, driven by a significant increase in average claim size. The rise is likely to be caused by ever-increasing veterinary costs, as the sophistication and cost of treatment rises.
Figures published today by the Association of British Insurers (ABI) reveal that, in 2018, more pets were covered than ever before – with nearly 4.3 million pets being protected. The figures also reveal that, despite the average claim climbing by £36 to £793, average premiums were down slightly for the first time in 8 years at £279 compared to £281 last year. Over the past ten years, the average claim has increased by 75%, whilst the average premium has only increased by 50%.
There is also a worrying level of under-insurance amongst cat owners, who make up a very small proportion of pets insured despite there being an estimated 7.5 million in UK households. Only 1.3 million cats are insured compared to 2.8 million dogs – potentially leaving the owners of 6.3 million cats at risk of having to foot expensive vet bills out of their own pockets.