Nationwide, the largest provider of pet insurance in the United States, has decided to discontinue approximately 100,000 pet insurance policies nationwide. The company attributes this decision to the rising costs of veterinary care, which have made it financially untenable to continue offering coverage in certain states.
According to a statement released on Friday by Nationwide, the cancellations will be phased in starting immediately and will extend through next summer. The company emphasized that these actions are necessary to ensure the long-term viability and profitability of its pet insurance business amidst inflationary pressures and other economic factors affecting the industry.
Nationwide clarified that the cancellations will not be based on factors such as the age or breed of the pets, nor on prior claims history. Affected policyholders will receive advance written notification about the discontinuation of their coverage.
Pet insurance has gained popularity in recent years, with a NerdWallet study noting that 24% of pet owners now opt for insurance coverage. Nationwide was recognized by NerdWallet for its comprehensive coverage for exotic pets, although the ASPCA was highlighted for its broader coverage options.
The announcement from Nationwide comes at a time when many Americans are grappling with increases in various types of insurance premiums, including for homes and vehicles. Government data indicates a significant rise of 20.3% in car insurance costs over the past year.
Pet insurance policies typically cover expenses related to injuries, illnesses, and general wellness for pets. According to NerdWallet, the average annual cost for a dog’s policy is approximately $676, while for cats, it is around $383 for the most common type of coverage.
This move by Nationwide underscores the challenges faced by insurers in balancing coverage offerings with escalating costs, impacting both industry dynamics and consumer choices in the realm of pet care.
