Average UK pet insurance claim tops £600 for first time
The latest figures released by the Association of British Insurers (ABI) highlight the vast expense of owning a pet, and as the cost of vets bills continues to increase, so does the cost of insurance premiums. Yet as the pet industry is still trailing behind its more mainstream counterparts such as the home and motor protection markets in its fraud prevention measures, Mark Colonnese, Sales and Marketing Director, explains that insurers may still be missing a trick in making the market as profitable as it could be.
Pet insurance cost £478million last year in the UK, the equivalent of a massive £1.3million per day and this massive sum can be felt hardest in the consumers pocket with the cost of the average policy being pushed up to around £220 a year.
The steep rise is mainly down to the fact that revolutionary new treatments that improve the health and lifespan of our pets are extremely costly in comparison to old methods - with the average claim costing as much as £600.
Yet despite these justifiable reasons for premium hikes, there is also a more sinister reason for the high cost of pet insurance - the scale of which may not fully be realised due to lack of information.
The most up to date figures, published in 2011, showed that pet insurance fraud was costing the industry £2m, when only a year previously in 2010 it accounted for only £420,000. With no figures published since, there is no way of knowing exactly how much it could now be costing insurers as they struggle to keep the pet market profitable.
Yet, Aquarium - who have an enviable track record in the development and delivery of cloud technologies for the insurance markets, utilising ‘management by exception’ - believe with more comprehensive vets records now being brought in, they could have the same positive effect on the pet market.
“Here at Aquarium, we are well aware of the cost of insurance as people look to ensure their pets’ health and wellbeing,” said Mark.
“As treatment is becoming more costly so are premiums, which are pricing many pet owners out of the market. This is why it is even more important that insurers do all they can to ensure they keep their costs down and we believe with our track record in other markets, we can help keep would-be fraudsters at bay - and in turn ensure the cost of premiums are as low as possible.”