Fall in pet insurance premiums begins to accelerate

Pet insurance premiums maintained their recent downward trend into June, falling 0.8% month-on-month, according to consultancy Pearson Ham Group’s latest Pet Insurance Pricing Index.

The index, released today (8 July 2025), also highlighted a longer-term downwards trend in prices, with average policy prices falling 2.6% since June 2024.

The figures marked a divergence from a series of inflationary monthly rises seen earlier in the year. Indeed, May and June saw the first consecutive monthly falls in the period, with June’s steeper falls solidifying the modest drop in May.

With both cat and dog premiums falling, Pearson Ham Group said the continued reduction may “reflect a period of recalibration in the market as insurers respond to evolving claims data and consumer demand”.

Downwards movement

Frances Luery, product manager at Pearson Ham Group, said: “The June data points to a strengthening downward movement in pet insurance premiums. With average prices now 2.6% lower than a year ago, it’s clear that market conditions are shifting.

“While it’s too early to declare a long-term trend, the continued fall from May into June indicates insurers are actively adjusting pricing strategies in response to recent inflation and competitive pressures. Ongoing fluctuations between providers and regions further underline the importance of precise and dynamic pricing in this space.”