Barking mad for Pet Insurance

The recent pandemic and modern home-working practices have swelled these numbers as many people choose new balance in their life – often including that daily dog walk or feline companion on the lap (and laptop!).

Many people see their pet as a member of their family. But there is no NHS for pets, and veterinary bills can be staggeringly high. People can be left with bills for thousands of pounds with no warning – or the terrible decision to let their beloved pet down. 

Pet insurance is designed to help cover the costs of unexpected veterinary expenses arising due to pet illness or injury. By providing this financial protection it aims to take away difficult decisions about pet care based on ability to afford treatment. Pet insurance policies cover eligible veterinary expenses, but also can include diagnostics, medications or even wellness and behavioural treatment. Policies vary considerably, which suits the varied pockets and types of pets, but can be a challenge for consumers who may find themselves navigating a technical world of cover without understanding what vet costs can really be. 

Pet insurance isn’t new. The prize for first animal insurance policy goes to Sweden right back in 1890. Sweden pet owners remain the highest purchasers of policies per pet, but other countries have been catching up as more owners discover the help this type of insurance can give. By some estimates, almost half of UK cat and dog owners now have some type of pet insurance.  This is reflected in the success of the business I work at ­– ManyPets – a pet insurtech that launched around six years ago, and today looks after over half a million cats and dogs.

So, what are the real differences between Pet Insurance and other types of Personal Lines? For me, the biggest consideration is that we are talking about the life and health of a beloved family member – this is a non-mandatory line that people nevertheless see as essential. It’s vital to build your products and services with a huge scoop of empathy for that distressed pet owner and the choices they may be facing. Insurers must work hard to deserve the trust customers have put in them – not something that the wider industry has aways traditionally succeeded in doing.

Another unusual consideration for Pet insurance is that its purchase necessarily changes people’s behaviour. Whilst moral hazard is something we are used to seeing in most lines, it is particularly pronounced here, where the first question a vet may ask on seeing Fido’s injuries is – “are you insured?”. This mustn’t be seen as fraudulent – it’s a hugely positive feature of having pet insurance for the customer. The peace of mind that their pet will get the best is one of the main reasons for buying the policy in the first place. However, it is a key consideration for policy build.

Pet insurers can also add lots of value to their customers by helping them better understand the health of their pet, manage cost treatments and by providing services like Telemedicine (video advice and triage by a vet). All these can be win-win for the insurer and the customer as costs are better managed, reducing prices or helping cover go further.

Insurance done well is a superhero business – we help people at times of distress and keep their family happy and healthy together. Pet insurance done well is a superb insurance service that benefits consumers, improves animal health outcomes and one that is predicted to continue its healthy (dog)walk to greater UK numbers.

ManyPets is an award-winning pet insurance provider, on a mission to make the world a better place for pets and their parents. It covers over 600,000 dogs and cats globally and offers products which lead the pack, including generous cover, fewer exclusions and industry-leading benefits such as free video vet calls. Charlotte Halkett been part of the leadership team at ManyPets since 2019, becoming Chief Underwriting Officer in 2022. At ManyPets, Charlotte has built the underwriting function and recently led the switch to a new insurance carrier. Charlotte is also an active champion for developing women’s careers in Insurtech.