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Associate Article

Growth of pet insurance industry

Market analysts have pinpointed the ‘humanisation of animals’ as one of the major reasons behind the growth of the pet insurance industry. With many cats and dogs being treated with the same regard as children, pet owners are opting to insure their pets against illness, disease and injury, rather than risk being unable to pay the bills themselves and face the decision as to whether or not to have the animals destroyed.

The use of pets as a ‘fashion accessory’ by many celebrities has also sparked a surge for the average pet insurer as more people as seeing certain breeds of animal as desirable objects – usually expensive ones. Owners can pay up to £400 for dogs, such as Chihuahuas and then decide to insure them rather than facing hefty veterinary fees. Other pedigree animals can cost considerably more to buy.

The rise in available options within the world of pet cover has also encouraged the boom in insurance. Companies are now offering other services, such as preventative care to cover the cost of neutering, vaccinations and regular health checks. There is also the option to insure dogs against causing car accidents; in the event that they do and the vehicle incurs damage, the pet insurer then becomes liable for the cost of the car repair.

Although restrictions have been placed on the breeding, trading, import and export of certain animals, there is a far wider range available to the consumer. Exotic animals such as lizards, spiders, fish and birds are increasingly popular among collectors. However, specialist animals can require specialist care and can often incur large costs in the event of accident or illness. The increase in access to this market has also contributed to the increase in pet insurance.

Developments in veterinary science have increased the awareness of potential illnesses and diseases where pets are concerned and owners can now be more aware of the likelihood of certain ailments afflicting their pets at certain ages. Age, of course, can determine the rate of premium payable in a policy – generally, the older the animal, the more expensive it will be to insure, as the risk of heart disease, kidney failure and cancer increases. Many pet insurers now offer a policy that covers a pet from a very young age, paying for routine checks and inoculations. This, in turn, puts the pet in a lower-risk category and can reduce the payments for the owner. The scientific developments also extend to the treatments available for illnesses and disease. Once life-threatening conditions are now treatable, using technology that was once exclusive to humans: MRI scans, kidney transplants and radiation therapy are now widely available.

However, these treatments also need to be paid for, from the equipment used in treatment to the increasingly detailed exams that student veterinarians need to complete in order to qualify. This, in turn, has an effect on the cost of insuring pets.

As with any insurance policy it is prudent to shop around, comparing prices and offers. With the growth in this industry, pet insurers are steadily becoming more competitive; it is now becoming more common for insurers to offer services that include covering the cost of boarding for the pet, should the owner fall ill or paying out a fee that covers the cost of posters and printing in the event that the pet goes missing. Asda Pet Insurance in particular have teamed up with the Missing Pets Bureau to help policy holders locate their pet should it go missing.





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