Research from Sainsbury’s suggests that some 1.8 million claims are made every year on pet insurance policies in respect of veterinary treatment for dogs and cats.
The study also reveals that around 18,000 claims are made for other reasons, such as when a pet is lost or stolen. Despite this level of claims, however, the company warns that up to 75% of cats and dogs are not insured, which costs their owners £5.5 million in veterinary treatments every year.

The most common claim the company receives for pet insurance is for tumours of the skin, with general ill health (where the pet is said to be “just not his or herself”) second and then lameness.

The Post Office is planning to launch a comprehensive pet insurance product following research which showed that just 20% of pet owners have pet insurance cover.

With rising healthcare costs for dogs and cats, the new insurance will offer “a comprehensive range” of cover for cats and dogs and will cover veterinary bills up to a maximum of £5,000 per condition.

Having researched the market place, the Post Office found that 96.5% of claims on pet insurance policies are less than £5,000. By keeping a limit on how much a pet owner can claim, means that the actual costs of the insurance can be kept low.

The policy will cover pets of all ages and payouts on claims will also continue for more than 12 months after the initial treatment. This is unlike many policies, which can set a time limit on a claim.

Sainsbury’s Finance estimates⁽¹⁾ that around 1.8 million pet insurance claims for veterinary treatment for dogs and cats are made every year. A further 18,000 claims are also made for other reasons including when the animal is lost or stolen. However, Sainsbury’s warns that as many as 75% of cats and dogs are not insured⁽²⁾, and it estimates that owners have to pay for some 5.5 million veterinary treatments a year because of this.

According to Sainsbury Finance, the most common pet insurance claim is for skin tumours, followed by general poor health where the cat or dog is said to be “just not his/herself”.

Claire Moyles, Pet Insurance Manager, Sainsbury’s said: “The pet insurance industry not only deals with a huge volume of cat and dog claims every year, it deals with a staggering breadth of ailments and problems. Quality pet insurance will cover a wide range of treatments and services from dental accidents and behavioural treatments to advertising for lost pets. In 2007 alone we had claims covering well over 200 different categories.

“Our analysis demonstrates that pet insurance isn’t just a nice to have product. Events in which you may find yourself needing to claim are more common than you may wish to consider.”

Sainsbury’s Finance estimates⁽³⁾ that the lifetime cost of owning a cat and dog today is around £7,200 and £9,000 respectively. Furthermore, it estimates that some 19% of the annual spend on dogs is attributable to vet fees and the corresponding figure for cats is 21%.

Notes

(1) Based on analysis of Sainsbury’s Finance pet insurance data, 2007.
(2) Defaqto.
(3) Based on research undertaken by YouGov between 29th - 31st January 2007. 2,446 people were interviewed of which 693 were dog/cat owners. The survey was carried out online; the figures have been weighted and are representative of all GB adults (aged 18+).

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