I recently read several posts online from pet guardians whose pet health insurance policies might be cancelled in the next year by a company that’s just announced it’s withdrawing some products in some states.
Here is the company’s formal announcement:
Nationwide Pet Takes underwriting actions to address inflationary pressures and other factors
June 14, 2024 – Nationwide’s pet insurance business is taking underwriting actions that will enable the company to maintain long-term viability and profitability. The company released the following statement today on these actions.
As pet lovers ourselves, we understand the emotions connected to the protection of our family pets. Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in some states—difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business.
These measures, being taken at a state level, comply with the law and our contracts, and are not associated with the pet’s age, breed or prior claims history. This will involve the non-renewal of approximately 100,000 policies between this spring and the summer of 2025. Impacted policyholders will be notified in writing well in advance according to state law.
We certainly empathize with the disappointment many of our pet families feel and will fully stand by the protections for which they have paid through the end of their current term. Our rates will continue to be fair and appropriately priced for the plan, pet, and breed.
We are proud that we consistently pay for covered claims each and every day, amounting to billions of dollars over the past four decades. We are making these tough decisions now so that we can continue to be here for even more pets in the future.
The future is bright for Nationwide Pet. We remain focused on expanding our reach to protect more pet families while partnering to make pet care more affordable and accessible. We’ll continue to build our pet business by expanding our distribution network, establishing new partnerships and deepening the ones we have with Walmart, Petco, and our recently announced partnership with Unum.
More broadly, Nationwide remains strong and stable as one of the largest providers of financial services and insurance products in the U.S.
Photo by Stine Theede
Forbes Magazine covered the news:
Nationwide has announced that it will drop about 100,000 pet insurance policies over the next year, citing the rising cost of going to the vet as one big reason. That could leave thousands of pet owners scrambling to find coverage for their pets, especially older animals with pre-existing conditions that might not be covered under a new policy.
The non-renewals will occur between now and the summer of 2025 and “are not associated with the pet’s age, breed or prior claims history,” the insurance giant said in a statement, adding that customers whose pet insurance policies are affected will be notified in writing “well in advance.”
The company currently insures 1.2 million dogs, cats, birds and exotic animals.
“Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in some states—difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business,” Nationwide said.
The price of veterinarian services has jumped 7.6% over the past year, according to the latest Consumer Price Index from the Bureau of Labor Statistics. The rise has fueled growth in the pet insurance business. The pet insurance sector in the U.S. and Canada saw an almost 22% bump in revenue in 2023, the North American Pet Health Insurance Association’s State of the Industry report found.
Meanwhile, Nationwide said it will focus on expanding its pet insurance reach through its partnerships with other companies, including Petco, Walmart and Unum.
I asked friends online if they might be affected:
“Pet health insurance—has yours gone up, down, covered more, been cancelled?
“Pet health insurance—tell us about your current situation: Have you had it for years or are you newly insured? What’s going on with your insurance? Has your rate gone up or decreased in the last year? Is the coverage for your pet/s better … or worse? Or has the company completely cancelled pet health insurance—and what will you do now?
“Please share what’s going on with your pet health insurance and how you feel about it, for the benefit of our readers who are novice pet guardians looking for guidance and encouragement.”
Pet guardians answered with a variety of responses, several from the UK:
Amy Cowley (United Kingdom) Mine went up from £71 [$89.84] to £107 [$135.39], but he is covered for £15,000 [just under $19,000] each year for everything apart from dental. Just takes forever to get money back from them.
Stephanie Presdee (United Kingdom) Up a few pounds but doable. He is 13 and four months, so understandable! [Policies cancelled?] Not so far, some [insurers are] obviously not covering certain breeds. Agria Pet Insurance can provide lifetime insurance cover for American XL Bully dogs for vet fees, [but] it is unable to offer coverage for third-party liability. If you have a Certificate of Exemption for your XL Bully dog, you must have third-party public liability insurance for your dog. This can be provided by Dogs Trust Membership. Higher costs of living, safer areas may mean more expensive vet fees. If you move from a town to a rural area, pet insurance might go down. I live in a very rural area.
Mandy Lorian (Wisconsin) I’ve had Trupanion for over 12 years and for five different dogs. It goes up slightly each year, but if you get the policy when they are puppies, it’s easy to absorb the cost. It is worth every penny, especially when your pets become elderly. Last year, I had two seniors with cancer and the insurance covered $30,000 in treatment that I obviously would never have been able to afford otherwise. It allowed us extra time and them an increased quality of life.
Amy Suggars (Ohio) I get pet health insurance as soon as I get a pet. I got my current dog when she was two years old. She already had an insurance policy purchased by her previous owner. I could have just taken over that policy, but I preferred a different provider. We’ve been with Healthy Paws for five years now and I’m happy with it. The premium has gone up some every year but that is not unexpected. The policy has a good balance between level of coverage and annual deductible. I pay around $600 per year for the premium and have a $500 deductible. As I always say … my dog has better health insurance than I do!
Michaela Kelso (Washington) I adopted a Livestock Guardian Dog 18 months ago from the Spokane Humane Society. With his estimated age at the time being four years old, I jumped at the chance of starting a “no questions asked” policy with MetLife Pet Insurance. I haven’t had to use it yet, and earlier this year I was notified that they miscalculated premiums for a number of policy owners, so I got—drum roll, please—a REFUND! And a reduction in policy premiums.
Jim Mihalek (Minnesota) Embrace on Zuri went from around $800 to $2500 last year. We were able to switch to Pets Best for about $900. That went up to $1300 for this year. This is good, as Z was diagnosed with hemangio in March and so far Pets Best is covering everything. [I’d] still like to mention that with Libby, I submitted $32,000 in bills over three and a half years (cancer) and they paid $26,000 of it. When you account for annual deductible and the 80/20 copay, they paid on darn near everything, including boarding and acupuncture. I would never be without it again.
Rebecca King (Ohio) Mine went up just over 20%.
Sarah Langevin-Gaspar (Florida) Five cats, one dog … everybody’s [cost of coverage] at least doubled this year. The vet rates have followed right along, just as they did when human health insurance became a thing. It’s insane.
Bonnie Hess (Pennsylvania) It has gone up slightly, but it is there if I need it for my now nine-year-old puppy. Glad I have kept it for him. If something happens, there is nothing more important than medical necessities.
Want to know more about pet health insurance and how it works? Many states have addressed the topic; check online to see if your state offers similar information.
LEGALease: Pet Insurance—Frequently Asked Questions
New York State Bar Association’s Committee on Animals and the Law
This pamphlet has been prepared by the NYS Bar Association’s Committee on Animals and the Law to answer some of your questions about pet insurance. Whether you have just adopted your first shelter puppy, kitten, or older pet, are purchasing from a breeder, or you are an experienced pet parent considering the purchase of pet insurance for the first time, this pamphlet may provide you with answers to the questions you should ask.
Pet Health Insurance: Illinois Department of Insurance
Pet health insurance typically protects you from financial losses when your pet gets into an accident or becomes ill. As with other types of insurance, there is no guarantee that buying pet health insurance will save you money, and it is possible that you will pay more in premiums than you receive in benefits. Before selecting an insurer or policy you should research various policies and select the one that best suits your needs and fits your budget.
How Does Pet Health Insurance Work?
Pet health insurance operates similarly to how your health insurance plan may work. Your plan may have deductibles, annual or lifetime limits, and there may be caps on coverage for specific types of illness or accidents.
The most notable difference between human health and pet health insurance policies is the method of reimbursement. When your pet is injured or ill, it is your responsibility to pay the veterinarian bill. You then submit a claim to your insurance company, who reimburses you for some or all of your expenses.
Pet Insurance: Minnesota Department of Commerce
Just like health insurance for you or a family member, there are several types of pet insurance policies. A pet health insurance policy reimburses the pet owner for covered veterinary care. As with your health insurance policy, these policies typically itemize covered treatments, deductibles (the amount you’re responsible to pay) and lifetime or per illness maximums. The cost of a pet health insurance policy will vary based on the amount of coverage, the type of coverage, the species and age of the pet, and even what breed of animal.
A pet life insurance policy covers end of life costs for your animal. This can include burial or cremation expenses and even bereavement counseling for you and your family.
Pet injury coverage is a new type of coverage that may be part of your auto insurance policy. It covers the treatment of a pet injured in a car accident up to a set limit. Generally, this coverage is automatically part of your auto insurance policy. Check with your insurance agent or company to determine if your auto policy includes coverage for a pet traveling in the car with you.
