Aussie pet insurance stats highlight price and efficiency challenge for insurers
New figures published by the Australian Bureau of Statistics show that pet owners are continuing to underestimate the value of Pet Insurance cover. The latest numbers show that 37% of pet owners’ expenditure goes towards maintaining their health, whilst only 10% of pet owners have insurance plans to cover potentially crippling vets’ bills. When compared to the fact that only 6% of an average Aussie’s income is spent on maintaining their own health, it offers food for thought, says Aquarium Software.
“The figure, when directly compared against what people spend on their own health is quite surprising - it’s a significant amount of money that could potentially be saved by taking out a policy,” said Mark Colonnese, VP Sales & Marketing. “But with annual insurance premiums as high as $350 in Australia, it’s up to insurers to justify their yearly costs and make pet insurance more accessible and financially viable to householders.”
The figure spent on vets’ bills by pet owner’s stands at 2.2billion AUD each year, as they fight against a battle between their emotions and their bank balance to keep their pets healthy, but Colonnese believes insurers could be missing a trick when it comes to pushing down premiums and making Pet Health Insurance a more palatable alternative.
“Insurance companies can work alongside vets to employ tailored software packages that tracks medical conditions, age and breed of pet to ensure that each insurance plan is based on the individual pet risk - similar to how insurers have been pricing health insurance plans for people, for decades,” explained Mark. “It’s also important to catch up on the fraudsters who are taking advantage of the naivety of this relatively new insurance market, by employing proactive loss prevention strategies that have been part of more recognised insurance sectors, such as home and motor insurance for many years.”