Pet insurance a "big growth area"

Posted : 26-04-2007

Pet insurance is becoming a "big growth area" as increased competition is forcing providers to offer more personalised premiums to pet owners.

According to Marks & Spencer the pet insurance market has changed dramatically in the last five years and consumers who shop around could get a better deal than ever.

Spokesperson Liz Neild said that in the past pet insurers based their premiums simply on the type of animal and whether it was a recognised breed or a mongrel.

"That's changed incredibly in the last five years to the extent that everyone's using much more sophisticated underwriting techniques," she said.

Claims experience shows some breeds of animal to be more susceptible to illness than others and where the owners live can also determine how likely they are to make a claim for their pet.

For example Ms Neild explained that vets bills in the south of England tend to be higher than those in the north so insurers are bearing these factors in mind when setting their premiums.

But while some pet owners may find their insurance is becoming more expensive as a result of precise premiums, the cost of not having insurance could be extremely high as research from Lloyds TSB shows that uninsured animals cost Britons a total of £1.1 billion a year in vet bills.


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