National pressure forces u-turn on pet insurance cancellations

Lloyds TSB and Halifax announced plans to withdraw pet insurance policies last year quoting, in part, rising veterinary costs as a core reason for their decision. The BVA and other veterinary associations strongly refuted these claims.

Unwell pets who were formerly on insurance policies with the banks will have their policies reinstated, however Lloyds and Halifax will not be offering new policies, nor will they be providing insurance for the 25 000 pets which are not unwell.

The move has been welcomed by owners of ill pets, as finding insurance for pets with existing conditions is incredibly difficult.

Veterinary Pet Insurance Co. (VPI) has released data on the most common conditions of 2011 in America

VPI released information from over 485 000 pets on the conditions most commonly reported to vets.

Dogs
1. Ear infection
2. Skin allergies
3. Skin infection
4. Non-cancerous skin growth

Cats
1. Bladder infection
2. Chronic kidney disease
3. Overactive thyroid
4. Upset stomach

$98 was the average claim fee per visit for the 62 000 dogs with ear infections, while 3800 cats with bladder infections were treated for an average of $233.

The most expensive canine conditions (non-cancerous growth) averaged at $220 whereas cats’ most expensive condition (lymphosarcoma) cost over double at $426.

Read more for the full list.

Lloyds TSB and Halifax withdraw 50 000 pet insurance policies

The BVA recommends owners speak to their vets to discuss future cover for pets that are no longer insured. Unfortunately many price comparison sites don’t take important factors into account when showing available insurance policies – veterinary guidance is often necessary.

Claims by insurance companies that rising veterinary fees are to blame have been refuted by the BVA. BVA President Carl Padgett commented:

“Rather than blaming veterinary practices for increasing the levels of treatment available, these insurance companies should do everything they can to ensure their policy holders are not left high and dry.”

If you know an owner that’s been affected direct them to the ABI Pet Insurance Consumer Guide.

For references on why the banks have left the pet insurance market visit Lloyds TSB and Halifax.

Better quality healthcare and longer life expectancy in pets is causing the number of insurance policies taken out to increase.

Petplan has reported a marked increase in the number of insurance policies. Improved diagnostics, advances in technology and, as a result, increases in treatment cost are all cited as factors boosting the number of clients taking out insurance policies.

Lifelong pet insurance policies currently lead as the most popular. Insurance Blog has the full story here.

41% of owners fear they can’t actually afford vet bills. No one wants to be faced with a client who genuinely can’t afford the cost of treatment — it’s awkward, depressing and a lot of work for the vet who then has to seek legal alternatives or reduce their costs when they can’t afford to.

Veterinary services are advanced and capable of remarkable feats, but unfortunately this all comes at a cost. Not all owners purchase insurance for their pets, and, if their animal is perfectly healthy, they may not have cause to.

As a vet what are your recommendations for clients in purchasing insurance? Should the worst case scenario always be accounted for, or is insurance simply too much to maintain for clients if they can’t afford it and their pet show no sign of illness?

Click here for a report by MSNBC. We would love to hear your comments.

Responding to advice from the veterinary community, Petplan has changed a number of its policies. ‘Covered For Life’ is has been broken down into Petplan Classic, with Petplan Ultimate and Essentials changing the packages they deliver.

Pet insurance is an important decision for all owners to consider, and clarification on what policies specifically offer is welcomed by both owners and vets. Full story from Zenopa here.