Pet insurance increases could create taxing dilemma for owners
Pet insurance software expert Aquarium Software has warned pet owners to do the right thing and not let new tax increases set to come into effect as of 1 November dissuade them from insuring their pets. Experts have warned that pet insurance prices are to go up due to the standard rate of Insurance Premium Tax (IPT) increasing from six per cent, to nine and a half per cent.
IPT, the tax paid every time an insurance policy in the UK is bought, will see three million pet insurance policies increase by an average of £10.
But Aquarium’ s Sales and Marketing Director Mark Colonnese says that pet parents should not let this revelation deter them from being responsible owners, by insuring their beloved pets.
“It’s inevitable that the public will greet the new tax increases negatively,” said Mark. “But it’s important that the changes don’t affect how they behave when it comes to insuring their four-legged companions. A responsible pet owner will ensure they obtain suitable pet insurance due to the unavoidable risks that come with having a pet. In some respects, pet insurance is more vital than other forms of insurance as you’re responsible to an animal who ultimately relies entirely on their owner for care. Part of caring for a pet is ensuring they’re correctly insured in case of all eventualities.”
Aquarium believes that insurance premiums for many pets may be higher than they might otherwise be because the market is having to absorb the overall cost of claims and pet insurance fraud; whereas once smart technology is deployed across the board, ‘perfect premium pricing’ will ensure an animal is insured based on its actual risk profile, rather than having to completely rely on the average cost to the industry.
“Pet premiums have lagged behind in the complexity and accuracy of their calculation”, said Mark. “But we are close to being able to reverse this situation through the harvesting and authorised sharing of data by insurers. The end result could be more reasonably priced premiums for most, whilst those pets and pet parents associated with a higher level of risk may become uninsurable.”