Sainsbury’s Finance has launched a new lower cost Pet Insurance policy option, that unlike some other tiered offers, not only offers £3,000 towards veterinary fees but also covers up to this amount for dental cover in relation to both injury and illness.

Over a quarter(1) of policies for cats and dogs don’t offer this level of cover on vet fees, and only 37% of policies for cats and 38%(1) of policies for dogs offer at least this level of dental cover.

Depending on the level of excess, Sainsbury’s Finance’s new Pet Insurance policy will have premiums that are typically up to 25-30% lower than its higher level policy, which offers veterinary fee cover of up to £7,500 and a wide range of benefits.

By offering two types of pet insurance policies with different levels of cover and pricing, Sainsbury’s Finance hopes more people will take out cover for their cats and dogs.

Research shows that only around 26%(2) of cats and dogs are insured, so the vast majority of pet owners simply have no safety net and are therefore having to find potentially large sums of money for unexpected vet’s bills. Indeed, research from Sainsbury’s Finance(3) reveals that 1.6 million people have had to put down at least one pet dog or cat over the past five years because they could not afford the cost of their veterinary bills. In addition to this, over the past five years, 2.5 million people admitted that they have declined recommended treatment for their pet cat or dog because they simply couldn’t afford the cost.

Neal Devine, Sainsbury’s Pet Insurance Manager said: “With the cost of treatments and vets’ fees rising, it’s now more important than ever to have pet insurance. However, worryingly as a result of the current economic climate we estimate(4) that as many as one million pets could see their cover cut back or taken away as their owners look to reduce their insurance bills.

“We now offer two levels of cover for two different prices, so whatever their budget we hope that more cat and dog owners will look to ensure that their pets are protected by quality insurance.”

Key elements of cover from Sainsbury’s new lower cost ‘Option 1′ pet insurance include:

* Vets fee cover £3,000(5)
* Dental cover up to £3,000 - injury and illness(5)
* Personal liability £1m
* Advertising £1,000, reward £250

Good quality pet insurance does not need to be expensive, good cover at a competitive price can be found by shopping around.

(1) Defaqto September 2008

(2) Datamonitor UK Pet Insurance 2008 report

(3) ICM interviewed a random sample of 1108 adults aged 18+ who own or have owned a cat or dog in the last 5 years. The interviews were conducted via an online omnibus survey between 21st - 22nd July 2008. Surveys were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information available at www.icmresearch.co.uk

(4)Based on Sainsbury’s Finance analysis of research from Deloitte on the percentage of people looking to give up insurance cover as a result of the credit crunch and Sainsbury’s Finance’s research into how many cats and dogs are insured. Sainsbury’s Finance research was based on 963 people being interviewed by GfK NOP between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.

(5) 12 month cover only.

New research from Petmeds.co.uk, the leading online UK pet health store, has revealed the cost of keeping a pet has increased by £7.6million a week in the past two years, with UK adults now spending £93.6 million a week on their animals*.

But Petmeds warns this is just the beginning and says things are set to get much worse as soaring pet food and medication costs push up animal costs and could lead to millions of pets being abandoned or failing to get vital medication and veterinary checks.

RSPCA figures show an increase in abandoned animals left with the charity last year, up from 6,500 in 2005 to 9,500 in 2007 and Petmeds is calling for the Government and the pet industry to work together and establish a Pet Poverty Fund to prevent the situation getting worse.

Petmeds argues the fund should be available as an option of last resort to which pet owners struggling in the face of rising costs can apply for help. As part of a Pet Poverty Fund initiative, Petmeds is prepared to provide flea and worming treatment for all pets bought in pet rescue centres for the next 12 months as part of a Pet Poverty Fund to help under pressure pet owners.

“The UK is rightly known as a nation of animal lovers but the reality is that many pet owners are really struggling to pay higher food and medication bills for their animals when they are already facing huge increases in their own food, energy and household costs,” states Petmeds.co.uk managing director Ricky Thomas.

“We believe the Government should look at funding a Pet Poverty fund for those pet owners most in need. If people feel compelled to start abandoning their animals or can’t afford to buy vital medication and veterinary treatment, we could face a major national problem which would fall upon charities, local authorities and the Government to address. By providing a Pet Poverty fund we can at least start to address these issues and work with owners to ensure their pets remain safe, well and in the family home.
“We’d also urge pet owners to look for sensible ways to save money on pet costs during the current climate without compromising their animals’ health or wellbeing, such as looking for bulk buy discounts or ways to source medication for less.”

Petmeds has launched its own forum for pet owners to exchange tips and ideas on caring for pets and also aims to undercut the cost of medication from vets by an average of 50%.

Petmeds is a leading and trusted UK pet health store supplying the public with genuine veterinary items at discounted prices. The company offers over 2,000 items for all animal health needs including prescriptions. Most items are sent within 24 hours and Petmeds guarantees to beat any price by 5% or more.

* Findings based on PetMeds analysis of ONS Family Spending Survey statistics

Sainsbury’s Pet Insurance offers a range of benefits including up to £1,000 per condition for complementary treatments and £250 a year for behavioural problems. Over the last year, Sainsbury’s Pet Insurance has seen a 28%(2) increase in the number of claims linked to behavioural problems, the Bank believes that Master Separation Syndrome is one of the reasons for this.

Neal Devine, Sainsbury’s Pet Insurance Manager said: “If a couple separating have pets, their animals can also suffer from the anguish and stress caused by the breakdown. Cats and dogs can be very susceptible to their owner’s feelings and if they sense they are unhappy they can easily become agitated and depressed.”

“Pet owners should be aware that good quality pet insurance doesn’t just cover vet fees but will provide cover for behavioural issues as well.

“Also, if you suddenly become reliant on one income to look after a pet the need for pet insurance will usually be greater as it will help you to cope more easily with any large unexpected vet bills.”

Sainsbury’s Finance estimates that the cost of owning a pet is increasing by around 5% a year (3). Indeed, it has calculated that the lifetime cost of owning a dog bought today stands at around £9,000, while the corresponding figure for a cat is around £7,000(4).

Despite the rising costs of veterinary bills, its research shows that as many as 11 million British pet owners have no insurance cover for their pet cats and dogs(5).

Good quality pet insurance does not need to be expensive, good cover at a competitive price can be found by shopping around.

(1) Based on analysis of the latest available Government statistics on divorce and Sainsbury’s research into what percentage of people have pets. 963 people were interviewed between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.

(2) Analysis of Sainsbury’s pet insurance claims data

(3) ONS Family Spending Reports 2002-2006 (Average increase in costs stands at 5.18889% between these years)

(4) 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+).

(5) Based on Sainsbury’s analysis of data from GfK NOP. 963 people were interviewed by GfK NOP between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.

This year, Sainsbury’s Finance estimates that over 60,000(1) cats and dogs in Britain could suffer from “Master Separation Syndrome” – a term coined by the Bank to describe the mental trauma caused by their owners separating.

Sainsbury’s Pet Insurance offers a range of benefits including up to £1,000 per condition for complementary treatments and £250 a year for behavioural problems. Over the last year, Sainsbury’s Pet Insurance has seen a 28%(2) increase in the number of claims linked to behavioural problems, the Bank believes that Master Separation Syndrome is one of the reasons for this.

Neal Devine, Sainsbury’s Pet Insurance Manager said: “If a couple separating have pets, their animals can also suffer from the anguish and stress caused by the breakdown. Cats and dogs can be very susceptible to their owner’s feelings and if they sense they are unhappy they can easily become agitated and depressed.”
“Pet owners should be aware that good quality pet insurance doesn’t just cover vet fees but will provide cover for behavioural issues as well.

“Also, if you suddenly become reliant on one income to look after a pet the need for pet insurance will usually be greater as it will help you to cope more easily with any large unexpected vet bills.”
Sainsbury’s Finance estimates that the cost of owning a pet is increasing by around 5% a year (3). Indeed, it has calculated that the lifetime cost of owning a dog bought today stands at around £9,000, while the corresponding figure for a cat is around £7,000(4).

Despite the rising costs of veterinary bills, its research shows that as many as 11 million British pet owners have no insurance cover for their pet cats and dogs(5).
Good quality pet insurance does not need to be expensive, good cover at a competitive price can be found by shopping around.

(1) Based on analysis of the latest available Government statistics on divorce and Sainsbury’s research into what percentage of people have pets. 963 people were interviewed between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.
(2) Analysis of Sainsbury’s pet insurance claims data
(3) ONS Family Spending Reports 2002-2006 (Average increase in costs stands at 5.18889% between these years)
(4) 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+).
(5) Based on Sainsbury’s analysis of data from GfK NOP. 963 people were interviewed by GfK NOP between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.

Every year, thousands of pet dogs and cats are being put down because their owners cannot afford the veterinary fees or ongoing medical costs of looking after their animals. New research(1) from Sainsbury’s Finance reveals that 1.6 million people have had to put down at least one pet dog or cat over the past five years because of this. In total, the research shows that 927,000 dogs and 822,000 cats were put down for this reason between 2003 and 2008.

These findings are supported by further Sainsbury’s Finance research(2) amongst vets that reveals more than half (51%) have had to put a cat or a dog to sleep in the past five years because the owner couldn’t afford their pet’s medical treatment.

In addition to this, again because of cost, the research(1) found that there are also many pets with medical conditions who are not receiving the recommended treatment because their owners cannot afford it. Over the past five years, 2.5 million people admitted that they have declined recommended treatment for their pet cat or dog because they simply couldn’t afford the cost. An overwhelming majority (80%) of vets confirmed that they had encountered this problem over the past five years.

Sainsbury’s Finance believes that there are two key reasons for this tragic problem. The first is that veterinary advances mean that the cost of vet fees is rising by around 12% per year(3). The second is that around 55% of cats and dogs are not insured(4), so owners cannot rely on an insurance policy to cover all or part of a vet’s bill and without this they may find it impossible to pay. Sainsbury’s Pet Insurance policy will pay up to £7,500 towards a vet’s bill.

Worryingly, Sainsbury’s Finance believes the situation of pets being put down or not receiving the recommended treatment for their medical conditions could be getting worse. Indeed, its research(2) reveals that 10% of vets claim that the number of uninsured dogs and cats they are asked to put to sleep because the owners couldn’t afford the treatment has increased when compared to five years ago, but only 5% think it has decreased. Similarly, 14% of vets stated that the number of owners with uninsured dogs and cats who have declined a course of treatment or operation because of cost has increased while only 6% believe it has fallen.

Neal Devine, Sainsbury’s Pet Insurance Manager, said: “Our findings are very disturbing but also frustrating because in many cases if the owners had taken out good quality pet insurance they would have been able to treat their pet without any problems.

“The current credit crunch could compound this situation even further, with as many as one million pet owners looking to reduce their pet insurance cover or do away with it all together (5). This is a false economy because when finances become tighter, it is even more important to have pet insurance so that you can pay any unexpected vet bills.”

Regionally, the East of England has the highest percentage of past and present pet owners (12.1%) who have had to put down a pet in the past five years because they couldn’t afford the treatment. This is closely followed by the West Midlands (11.3%) and the South East (8.8%).

Steve Dixon, a leading veterinary surgeon, said: “Vets are in business to treat and save the lives of animals not to put them to sleep because of cost. It can be heartbreaking for the vet and pet owner when this happens so we always advise owners to take out insurance to help avoid this situation.”

(1) ICM interviewed a random sample of 1108 adults aged 18+ who own or have owned a cat or dog in the last 5 years. The interviews were conducted via an online omnibus survey between 21st – 22nd July 2008. Surveys were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information available at www.icmresearch.co.uk
(2) 100 veterinary surgeons were surveyed in July 2008
(3) Source = Datamonitor
(4) Based on Sainsbury’s Bank analysis of data from GfK NOP. 963 people were interviewed by GfK NOP between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.
(5) Based on Sainsbury’s Bank analysis of research from Deloitte on the percentage of people looking to give up insurance cover as a result of the credit crunch and Sainsbury’s Bank research into how many cats and dogs are insured. Sainsbury’s Bank research was based on 963 people being interviewed by GfK NOP between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.