Pet insurance for older animals ‘needs a rethink’

Pet insurers need to rethink how they cover ageing animals, with one person admitting the sector “hasn’t given it enough thought” as rising costs increasingly price owners out of cover.

Speaking at the Pet and Equine Insurance Association (PEIA) forum, which was held under Chatham House Rules, the participant said the industry faced a challenge in balancing meaningful cover with affordability as claims costs rise.

They added that there should be a way to provide “meaningful cover for pets to the end of their lives” without forcing owners to abandon insurance altogether.

“It needs a rethink,” they said.

“As insurers, we haven’t given it enough thought.”

Pricing

Veterinary representatives said rising costs meant many owners were already cancelling cover as pets aged.

One vet said insurance was increasingly being dropped by owners with geriatric pets because they were “priced out of it or just can’t really justify it anymore”.

The discussion highlighted concerns that lifetime policies can continue providing substantial cover for expensive treatments that some owners may be less likely to pursue later in a pet’s life.

Another vet said many owners of elderly pets instead chose to self-insure by setting aside money for treatment.

‘It isn’t one-size’

In turn, panellists discussed whether insurers could offer more flexible products that allow owners to tailor cover as pets age.

One suggested a modular approach, with different elements available as optional add-ons.

“Perhaps having it as a ‘you choose,’ [choosing] what you want included within your policy and you have a price point for each of those,” they said.

“Almost like bolt-ons where someone is able to contextualize their own insurance and contextualize their own care, rather than having a one-size-fits-all. Because it isn’t one-size.”

They added that defining when an animal becomes geriatric is difficult because lifespans vary significantly by breed.

“For a Labrador, it’s maybe 10. For a Terrier, it might be 15. For a Great Dane, it might be five,” they said.

Another suggestion was policies focused on chronic age-related conditions such as arthritis and kidney disease, covering ongoing treatments including physiotherapy while excluding costly referrals and extensive diagnostics.

Panellists also discussed reviewing policies at renewal to better reflect an animal’s life stage, an owner’s circumstances and appetite for risk.

One participant suggested insurers and vets could work together before renewal to assess a pet’s changing needs and tailor cover accordingly.

They said: “Perhaps there’s an opportunity for the vets alongside the clients to do a review of where the animal is on that stage, where the person’s circumstances are at that point in time before renewal and just tweak the policy to fit that life stage.”