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.

Following today’s announcement by the RSPCA that it has seen a 23% rise in abandoned pets compared with last year, Sainsbury’s Finance believes that some pets may be being abandoned because their owners have underestimated the real cost of owning a pet.The cost of owning a pet cat or dog can run into several thousands of pounds over the course of the animal’s life⁽¹⁾.

Analysis undertaken by Sainsbury’s Finance revealed that the lifetime cost of owning a dog bought in 2007 stands at just under £9,000, whilst the corresponding figure for a cat is just over £7,200⁽¹⁾.  The average annual cost of owning a dog today is currently £502 but this could increase to as much as £921 in 12 years’ time, which is the average life expectancy of a dog⁽²⁾.

Steve Johnson, Head of Pet Insurance at Sainsbury’s Finance said: “The significant rise in pets being abandoned makes for depressing reading.  As the cost of owning a pet steadily increases, it’s important that owners and potential purchasers fully appreciate the financial commitment related to owning a cat or dog - this is rising at above the rate of inflation. Costs can also escalate as pets get older as they often need extra medical care and attention.

“The good news is that owners can help alleviate some of the financial burden and cost of veterinary bills by purchasing pet insurance at the point of buying their pet. Pet insurance need not be expensive and there are some very competitive premiums out there, like our own, which provides excellent cover and peace of mind.”

⁽¹⁾ 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+).

⁽²⁾ Average life expectancy of dogs taken from www.pets.ca

New research from Sainsbury’s Finance whose Pet Insurance (1) provides up to £1,000 towards the advertising costs for a lost dog or cat, reveals that over 1 million UK residents believe that they have had a pet cat or dog stolen over the past five years. Unfortunately, the research also indicates that if you lose your animal, the chances of you being reunited are slim as some 61% of people who have suffered from a pet cat or dog going missing since November 2002 never saw them again.

Steve Johnson, Head of Pet Insurance, Sainsbury’s Finance said: “It’s difficult to know the full scale of dog and cat theft because it’s impossible to know for sure if the cat or dog has been stolen, lost or suffered an accident. The scale of the problem is also underestimated because it’s not always reported to the police - only 12%(1) of people who have lost their pet over the past five years actually notified them.”

The Bank’s research and findings from the Missing Pets Bureau(2), which report that 38% of dogs reported to them as missing are actually stolen, suggests pet theft is a very real crime that should be taken seriously.

Johnson continues: “Many victims of lost or stolen cats and dogs may find that their pet insurance policy will offer little or no support towards the recovery of their pets. Around a quarter(3) of all pet insurance policies offer no reward for the return of lost or stolen cats and dogs and will not provide financial assistance to owners who want to try and find their missing pet by placing advertisements. We think this should be covered as standard”

Sainsbury’s Finance believes that there are three main reasons why pets are being stolen:
Resale price: Some pets are stolen because of their value. Bengal cats for example, are becoming increasingly popular with cat owners but they are very expensive to buy. Costs can vary from between £500 to thousands of pounds. Thieves stand to make a lot of money by stealing pedigree animals and selling them on.

Breeding: Pedigree animals can be stolen for breeding purposes. Puppies and kittens from certain breeds are sold for hundreds or thousands of pounds each.

Ransom: Some pets are stolen and then offered back to their owners for a ransom. In these cases criminals demand often thousands of pounds for the safe return of a pet.

Breeds most likely to be stolen (2):
Dogs: English Springer Spaniel, Border Terrier, Boxer, Yorkshire Terrier and Labrador Retriever
Cats: Burmese, Persian, Siamese, Maine Coon and British Short Hair

Sainsbury’s Pet Insurance provides up to £1,000 towards the advertising costs for a lost dog or cat and up to £750 compensation if the pet is lost or stolen and not returned. Through a partnership with Missing Pets Bureau the bank also offers pet owners FREE pet ID tags that link to microchips and DNA identification.

In an attempt to secure the safe return of their pet, 71% of people who had their cat or dog go missing over the past five years, turned to their neighbours for help, 44% put up posters in their neighbourhood and 13% placed an advertisement in the local paper(1). Two in five (40%) informed the RSPCA or equivalent local dog or cat home of their lost pet, whilst only 12% contacted the police.

Sainsbury’s Finance offers the following tips on how to reduce the chances of your pet going missing or worse, being stolen:

• Ensure that your pet wears a collar and pet identification tag

• Have your pet micro-chipped. This takes seconds and is virtually painless. Consult your local vet for details

• Keep garden boundaries as secure as possible to prevent your dog from escaping and also to deter thieves from entering

• Always supervise your dog, whether it is in your own garden or in a public area

• Try to avoid tying your dog up outside a shop or leaving it unattended

• If you use a dog walker, make sure that they are reputable

• Vary your routes when walking your dog

Pet ID tags provided by Missing Pets Bureau and Sainsbury’s link to microchips and DNA identification(4). They give 24-hour ‘Petback Protect’ support, 365-days-a-year, to get lost and stolen pets back to their owners fast. The tags are secure because they display a freephone number for people to call if they find a pet missing, and a serial number that links to the owner’s personal details on Missing Pets Bureau’s database. This is important as without the owner’s personal details, their identity is protected and a criminal cannot hold their pet to ransom.

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 an independent online survey conducted by Canvasse Opinion on behalf Sainsbury’s Bank. A total of 1557 interviews were conducted across the UK amongst adults aged 18 and over. Interviews were carried out between 1st – 6th November 2007. The consumer omnibus research uses a large sample size that reflects the demographic profile of the UK. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.

(2) Missing Pets Bureau data 2008.

(3)Defaqto’s Aequos Database, November 2007 (24% of dog and 21% of cat policies respectively).

(4) 12 months’ free membership of “Petback Protect”, fee required thereafter.

Analysis by Saga Pet Insurance* has revealed that the South East is the most expensive part of the country for pet owners who may have to take their animals to the vet - the average vet bill in the South East is £98.64 (30%) more expensive than in the cheapest region, Wales.

Whatever the reason your pet goes to the vet, many owners could be unprepared for the medical expenses. According to Saga, the average bill, per condition, is £258.16 for a cat and £320.92 for a dog, a much higher fee than most pet owners may expect to pay for their little companions’ injuries and ailments.

Regionally, the South East (£347.89) is the most expensive area to be a dog owner and the North West for a cat owner (£321.36). In contrast Wales (£227.24) has the cheapest vet fees for a dog and the South West (£209.14) for a cat.

With ever more sophisticated technology and procedures being used to treat our pets, the costs have considerably increased, meaning owners are sometimes having to dig deep to come to their pet’s rescue. Owners can expect to pay up to £4,000* if their pet fractures a bone and up to £10,000* over several years if their pet has a more complicated condition like a tumour or spinal disorder. Therefore, where you live could dramatically affect the amount you pay.

Andrew Goodsell, Chief Executive, Saga Group Ltd, said: “Every pet owner knows how important it is that their pet receives medical treatment if and when they need it. Without appropriate pet insurance in place, owners could be faced with the nightmare prospect of having to withhold care because it’s simply too expensive.”

Saga Pet Insurance have also put together a free booklet which focuses on aspects of keeping your cat or dog in good health, providing information on preventing illness and the requirements of food, exercise and healthcare.

*Analysis of actual Saga Pet Insurance claims from April 2006 to July 2007.

Each year, many dogs and cats fall sick from illnesses that could have been prevented with vaccinations, such as canine flu, kennel cough and other respiratory diseases. Yet research* for Direct Line Pet Insurance reveals that many pet owners are putting their pets at risk as one in 10 (11 per cent) admit their dog or cat’s jabs are not up-to-date.

For many, cost is an issue and a trip to the vet doesn’t come cheap - dog owners alone spend a staggering £1.5 billion** on vet fees each year. However, according to Direct Line, 62 per cent of dog owners don’t have insurance in place to cover costs so they have to resort to other measures to pay for their pet’s treatment. Worryingly, 17 per cent have delayed treatment for their pet in an attempt to avoid the costs.

Chris Price, Head of Direct Line Pet Insurance, said: “Our research shows that one in ten owners admit their dog’s vaccinations are not up-to-date. However, regular vaccinations can play a major role in disease prevention in dogs and cats and help to ensure that they remain in the best of health.

“Direct Line Pet Insurance is aware that the costs of vaccinations can be a daunting prospect for pet owners and so we are offering our new customers £20 towards that cost to help them immunise their pets***.”

Victoria Stilwell – Celebrity Dog training Expert from Channel 4’s ‘It’s Me or the Dog!’ comments: “Providing your dog or cat with good health care is paramount to being a responsible owner. Vaccination prevents many debilitating and sometimes fatal diseases that would need veterinary intervention and ensures that your pet lives a longer, healthier life.”

Direct Line Pet Insurance offers:

• Insure more than one pet with Direct Line and customers receive a discount
• Direct Line can pay the vet direct
• A pet is covered per condition, so there’s no restriction on the number of times a customer can claim
• There is a fixed one-off excess for each condition
• If a policyholder is hospitalised, Direct Line will pay up to £1000 for the pet’s boarding costs

* Research conducted by YouGov for Direct Line Pet Insurance amongst 1,136 GB dog owners. Fieldwork was undertaken between 12th and 17th January 2007. The survey was carried out online. The figures have not been weighted.

** Source: Defra, 2006 quote that 24% of British people own a dog. 24% of 45,731,000 (GB population from ONS) is 10,975,440 dog owners in Britain. YouGov research shows dog owners spend an average £144.53 a year on vet fees so £144.53 x 10,975,440 is 1,586,280,343

*** Direct Line Pet Insurance is offering £20 towards the cost of vaccinationsfor policyholders that insure their pets with Direct Line before 30^th June 2008. If the price is less than £20, Direct Line will cover the actual cost. Customers can redeem the £20 offer within the first 12 months from the start date of their policy.

Covent Garden based design and build agency CogWorks have created the first UK website for Agria Pet Insurance.

The website was created to introduce Agria, the largest pet insurance company in the Scandinavian region, to the UK market and to provide a platform to launch a range of new products and services in the future.

“The website has been designed to keep in-line with the Agria brand in Sweden.” said Adam Shallcross, Managing Director of CogWorks. “The site will be updated over the coming months to provide more information about Agria and the range of services they provide” he added.

Agria Animal Insurance, who purchased Petpartners Plc last year, is a specialist company of the Länsförsäkrings Alliance which is comprised of 24 regional mutual insurance companies together with the jointly owned Länsförsäkrings AB, the hub of the Alliance.

The research firm Datamonitor has forecast that the pet insurance market in Britain will grow to almost £600 million in 2011, from nearly £380 million in 2006.

“We are very pleased with the new website, and feel it is a good base to work from.” said Matthew Henderson, of Agria.

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The cost of routine visits to the vet has shot up in the last five years meaning owners are having to fork out more to keep their pet healthy. Figures from the Society of Practicing Veterinary Surgeons show that since 2002, the price of regular treatment has soared over 20%*.

Tesco Pet Insurance is offering a 40% discount to new customers buying cover online (20% over the phone) from 6th March until 2nd April 2008.

Allan Burns, head of Tesco Pet Insurance, comments, “Vets fees are becoming more expensive and it is important to know that in the event of an accident or unexpected illness your pet’s medical treatment can be paid for. We are offering a special discount to encourage pet owners to ensure their cat or dog is protected. Pet owners are responsible for ensuring their pets are kept healthy and happy and that includes picking up expensive vets fees if they’ve no insurance“.

According to research by Mintel, just over one third of pet owners (38%) feel they cannot easily afford all the veterinary costs for their pet(s). Perhaps now they can. Prices start from as little as £5.73 per month for dogs and £3.24 for cats.

*Information from Society of Practicing Veterinary Surgeons. Analysis of vets fees between 2002 and 2007.

A leading provider of pet health insurance, announced today that health insurance for pets in the United Kingdom is growing at a record rate.

CEO, Russell Smith stated, “According to Mintel, a leading analyst firm whose U.K. research spans more than three decades, the pet health insurance market in the U.K. is worth more than GBP 245 million, or over $495 million. There are currently over 1.85 million pet health insurance policies in place, and approximately 50 pet health insurance providers in the country.”

He continued, “U.K. Pet Health Insurance providers include: TESCO, a major online grocery store, Blue Cross, an international leader in healthcare insurance services, Pedigree, Pet Plan (an Allianz company whose gross premium income exceeds GBP 1,634 million), The Kennel Club, Equine & Livestock and AXA Insurance (a company that serves more than 50 million customers with more than GBP 1,091 billion in assets).

“Providers of health insurance for pets in the United Kingdom understand the importance of sophisticated pet health insurance programs that provide ‘lifetime coverage’ and other important benefits. At ensurApet, we understand this need, which is why our plans are currently the only program in the United States to offer lifetime coverage along with other critical benefits desired by pet owners. As the market grows for pet health insurance in the United States, we are confident that our plans will set the standard for excellence in the industry.”

Saga Pet Insurance has revealed that 1 in 7 (14%) claims are a result of clumsy pets*. The analysis looked at the number of ‘clumsy’ claims, rather than those for illness or disease, made for both cats and dogs in each region. Midlands’ moggies are revealed as the most accident-prone cats in the UK with over a quarter (26%) of claims caused by carelessness. Dogs in the area can feel a little smug as it’s their Southern relatives who were clearly the most hapless in the UK with the South East having the highest proportion of claims related to clumsiness, and being twice (185%) more likely to fall victim of their own negligence than welsh mutts who are the most cautious in the UK.

Top 5 regions of clumsiest cats  
1. Midlands
2. South East
3. Scotland
4. South West
5. North West

Top 5 regions of clumsiest Dogs
1. South East
2. South West
3. Scotland
4. East Anglia
5. North East

The top reasons for accident-prone cats to visit the vet were injuries to the body (22%) or being involved in road traffic accidents (16%). Getting caught on branches when jumping out of trees or cutting themselves when squeezing through small gaps were examples of some of the scrapes they get into. Dogs are more likely to suffer injuries to feet (27%) and ligament damage which is generally caused by a sudden strain on the leg (16%), both highlighting that dogs aren’t quite as nimble on their toes as their owners would like to believe.

However it’s not just the pets we should be feeling sorry for. The cost of treating these clumsy animals is potentially huge for the 71% of pet owners who are uninsured in the UK**.  The average cost for treating a cat involved in a road traffic accident is £705 but the costs can be as much as £5000, and treating a dog that has ligament damage could be closer to £9000!

*Analysis of actual Saga Pet Insurance claims from April 2006 to July 2007.
** GB TGI 2007 Q4 (Jul 2006 – Jun 2007) – Hhld survey