Pet insurance premiums have risen slightly, according to the February 2025 Pet Insurance Pricing Index from Pearson Ham Group. The report revealed a 0.4% increase in premiums for Lifetime cover, the most common form of pet insurance, marking a reversal from the previous year’s decline. This adjustment brings premiums to 2% below the levels seen a year earlier.
Frances Luery, a representative from Pearson Ham Group, stated that this narrowing gap in prices indicates that insurers are revising their pricing strategies in response to claims trends and changing market conditions.
Rising Premiums Across Pet Types
The premium hikes were consistent across different pet types, with cats seeing an average increase of 0.5% and dogs experiencing a 0.4% rise in the past month.
Regional Price Variations
Regional disparities in pricing were also evident. London saw the largest increase, with premiums in the top-five insurers rising by 0.7%. In contrast, Wales experienced the smallest increase, with premiums rising by just 0.1%. These regional differences reflect the influence of local veterinary market conditions on pricing, according to the report.
“Regional disparities remain a significant trend, with London seeing the highest increases,” said Luery. “The direction of this price trend will largely depend on claims costs, underwriting decisions, and the level of competition in each local market.”
Market Trends and the 2024 Pricing Drop
In November 2024, Pearson Ham Group reported the largest monthly price drop since December 2022, when premiums fell by over 4%. Luery explained that this significant reduction was largely due to pricing adjustments by two of the largest pet insurance providers, which led to a ripple effect that reduced market prices and heightened competition.
Pet Insurance Market Growth
The global pet insurance market is poised for significant growth. A report from Allied Market Research forecasts that the pet insurance market will reach $38.3 billion by 2033, growing at a compound annual growth rate of 14.5% between 2024 and 2033.
Europe, in particular, accounted for nearly 40% of the pet insurance market revenue in 2023, driven by high pet adoption rates in the UK, Italy, France, Russia, and Germany. The increase in demand for various policy coverage options and a strong emotional bond between pet owners and their pets are also key drivers of this growth.
This rise in pet insurance adoption is attributed to the increasing number of pet owners who are willing to spend on their pets’ healthcare, alongside the ongoing trend of pet humanization.
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