Pet insurance - an increasingly important purchase

19 March 2010 17:10:32

Nearly three-tenths of British owners have pet insurance.

Pet insurance was thrown under the spotlight recently, when the government unveiled proposals to force all dog owners to purchase third-party insurance. The idea produced such a backlash from owners that the government was forced to ditch the plans, barely a week after they were first unveiled. Nevertheless, all dog owners should consider standard pet insurance to ensure they are not hit with unexpected veterinary bills. Here, we look at the history of pet insurance to date and its importance for Britain's animal lovers.

History of pet insurance

Pet insurance was first offered in Britain in 1947 and has since become a common product in many countries. Today, the UK's pet insurance market is one of the healthiest in the world. According to Mintel's latest report on pet insurance, published in January 2010, almost 40% of British adults live with at least one animal and just under 30% have take out insurance for their pet. This compares with just 1% of owners in America who have pet insurance.

Growth of pet insurance

The increasing popularity of pet insurance has been most apparent over the past two decades, according to insurer Provet, while a Datamonitor report in 2009 revealed that the market grew by 13.1% in 2008. While some owners view it as an unnecessary expense, figures from pet insurers indicate that about one-third of policyholders need to claim on their insurance every year. This statistic highlights the benefits of getting a pet insured, as without a policy in place, owners could face sizeable veterinary bills.

What does the future hold?

The government may have ditched its suggestions for compulsory third-party insurance for dog owners, but pet insurance can still expect to be in rude health for the foreseeable future.

In fact, insurance has never been more important, as vet bills appear to be rising at an alarming rate. For instance, recent research by Saga found that the average annual UK vet bill has doubled since 2006 and now stands at £598. Meanwhile, a separate study by Sainsbury's Finance revealed that 56% of vets have had no choice but to put down a cat or dog over the past five years because its owner could not pay for the cost of necessary veterinary treatment.

According to Datamonitor, the pet insurance market is likely to reach £726.3m in 2013, thanks to a combination of increased uptake and rising premiums. The latter is deemed to be inevitable as insurers try to recover the rising cost of claims. As Ian Moffat, head of operations for Petplan, explained: "New treatment methods and drugs all come at a cost and that is why having pet insurance is so important."

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