Breaking news! Approximately 100,000 pet owners are about to lose their insurance coverage as Nationwide Insurance announces plans to end their policies, citing “inflationary pressures and other factors.”
In a recent press release, Nationwide Insurance clarified that this tough decision is crucial for the company’s long-term success and financial health, as well as to meet legal and contractual commitments.
This decision sheds light on the hardships faced by pet owners in the United States, who are grappling with increasing costs related to vet care, pet supplies, and insurance premiums.
Nationwide, recognized as the leading provider of pet health insurance” with 1.2 million policies before this decision, will be phasing out all affected policies by summer 2025.
The recent alterations in underwriting policies and discontinuation of specific products in certain states are a response to rising veterinary costs and other challenges. These tough choices are necessary for the financial stability of Nationwide’s pet insurance business,” the insurer expressed.
Nationwide assures that the decision to not renew around 100,000 policies from spring to summer 2025 is driven purely by financial factors and not influenced by pet age, breed, or past claims.
Affected policyholders will be notified well in advance of policy terminations. However, the exact criteria for selecting policies for termination have not been disclosed.
Carlson from Nationwide highlighted the surge in veterinary care costs, which include escalating pharmaceutical prices, general operational expenses, and other industry overheads.
In a recent report by the North American Pet Health Insurance Association (NAPHIA), it was noted that the pet insurance sector saw a 22% revenue increase year-over-year. Pet owners are choosing policies to protect themselves from mounting vet costs.
Presently, approximately 5.6 million U.S. pets are insured, with the majority being dogs. The average annual premiums in 2024 were $675.61 for dogs and $383.30 for cats, as per NAPHIA data.