Pet premiums rise 2.8% in June

Pet insurance prices continued to fall during the second quarter of 2026, new data from Defaqto has suggested.

However, a sharp rebound in June 2026 may be the first sign that rate drops in the sector may be easing. 

According to the figures, published today (5 August 2026), premiums dropped 1.8% over the second quarter, with prices declining by 2.3% in both April and May.

Prices rose by 2.8% in June, partly reversing the reductions recorded earlier in the quarter.

‘Change in direction’

Despite the minor rate uptick, premiums remain on average 6.4% lower than in January of this year and are down 7.8% over the past 12 months.

However, June’s price increases offer tentative hope for those seeking an end to rate softening, with growth in premiums seen across every age group and UK region for both cat and dog cover.

Frances Luery, product manager at Defaqto, said: “Pet insurance prices continued to fall overall during the second quarter, but June marked a clear change in direction.

“A 2.8% monthly increase does not establish a new trend on its own, although the breadth of the movement suggests that some insurers are beginning to respond to the growing gap between premiums and veterinary costs.

“The market remains highly competitive and consumers can still benefit from prices that are materially lower than a year ago. However, the headline premium is only part of the picture. Excesses, co-payments and other customer contributions are becoming increasingly important as insurers seek to manage claims inflation.

“We expect pricing to remain competitive, but further selective increases are likely during the second half of the year as insurers seek to balance affordability with the sustained rise in veterinary and claims costs.”