What’s going on with pet insurance?

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In the latest Insurance Post Podcast, Carey said the watchdog was on the prowl for “many different reasons” including the Consumer Duty requirements relating to fair value that were introduced earlier this year.

She said: “The pet insurance market is unique in that customers generally don’t shop around. They don’t switch products. When they get a pet, they are recommended very few insurance brands to go with.

“Once they have gone with an insurer, they are stuck. It doesn’t matter how much they are paying and whether they have the right cover, you can’t go and switch your policy two years later because you are only going to end up paying more.

“You’ve only got four types of policy on the market, one of which is probably the only one that meets consumer needs and delivers good outcomes. Why are there three types of products in the market that could leave customers in financial detriment?

“There are lots of questions to answer and I think the FCA is only just learning about the problems that exist.”

The pet insurance market is unique in that customers generally don’t shop around. They don’t switch products. When they get a pet, they are recommended very few insurance brands to go with. Once they have gone with an insurer, they are stuck.

John Gaynor, commercial director of Procurato Limited, said being able to access data to demonstrate whether good customer outcomes are being delivered to pet insurance policyholders will be essential when the watchdog comes a calling.

Jonathan Purvis, policy adviser in the Association of British Insurers’ general insurance team, agreed that the Consumer Duty created challenges for pet insurance providers but pointed out many are adapting by creating cover that can help owners avoid a claim.

On a happier note, David Scott, sales consultancy manager at Crif, said there is still a low percentage of animals insured so there are plenty of opportunities for providers to grow their business by connecting with vets, policyholders, and utilising wearable technology in the next year.

In the podcast, which was recorded back in September, Carey, Purvis, Scott and Gaynor reflect on what is pushing up pet insurance premiums, how the Competition and Markets Authority review of veterinary service costs could impact the sector plus the type of improvements being made to the claims process.

As well as being able to listen to the podcast by clicking on the player above, you can also download and keep this episode of the Insurance Post Podcast to listen to anytime, anywhere you want to.

To download the episode, go to your podcast provider of choice (Apple, Google, Samsung, Spotify, Audible, etc) and search for Insurance Post.

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