Record numbers take out pet insurance for their dogs and cats
The number of pet insurance policies in the UK has reached an all-time high, with a record 4.4 million pet owners now protecting their furry friends against unexpected vet bills. This represents a 63% increase from a decade ago, with 1.7 million more pets now covered under insurance policies. This is according to the Association for British Insurers (ABI).
The numbers for 2023 tell an interesting story about just how much pet owners rely on these policies. For the second year running, insurance payouts topped £1 billion, with companies handling thousands of new claims every single day. The average claim came in at £668 - notably higher than what most people paid for their policies.
Breaking down the data further, we're seeing some remarkable trends. Insurance companies handled 1.8 million claims in total—that's 32% more than in 2022 and the highest number since they started tracking this data back in 2007. To put that in perspective, vets were treating around 4,730 cats and dogs every day through insurance claims, over a thousand more daily cases than the previous year. All told, insurers paid out a record-breaking £1.2 billion, or about £3.2 million every day.
While premiums have gone up slightly—averaging £389, a 4% increase from 2022—these policies are proving their worth, especially with today's rising living costs. Consider this: surgery for a common dog injury like a cruciate rupture can set you back £3,000-£5,000, while treating a cat or dog with diabetes typically costs around £1,300. Even a relatively common issue like patella luxation (a knee problem affecting both cats and dogs) can cost between £2,000-£4,000 to treat (per knee).
Jonathan Purvis, Senior Policy Adviser at the Association of British Insurers (ABI), sees this trend as encouraging:
"It’s encouraging to see record numbers of pet owners all over the UK take out insurance to help cover the cost of veterinary treatment. Those without cover could find themselves in a tricky position should their furry friends fall ‘pawly’, so we’d suggest that everyone considers the financial safety net that pet insurance offers."
However, he emphasizes the importance of choosing the right policy:
"With a variety of pet insurance policies available, it is important to get the best policy for your needs, not just based on price. You should always read your policy carefully, so that you understand exactly what you are covered for.
While there are many different policies available, it's crucial to find one that truly fits your needs, not just your budget. Always read the policy details carefully to understand exactly what's covered.
Learn more here about the different types of pet insurance and some of the best pet insurance providers.