It’s been revealed that roughly 100,000 pet owners will no longer have insurance coverage, as Nationwide Insurance plans to discontinue their policies due to “inflationary pressures and other factors.”
In a recent news release, Nationwide Insurance stated that this decision was necessary to ensure the company’s long-term viability and profitability while following legal and contractual obligations.
This move reflects the challenges faced by pet owners in the United States, who have seen a significant rise in costs related to veterinary care, pet supplies, and insurance premiums.
Chalabala
Nationwide, known as the country’s “first and largest provider of pet health insurance” with 1.2 million policies in force prior to this decision, will be discontinuing all affected policies by the summer of 2025.
“Increasing costs of veterinary care and other factors have prompted recent changes in underwriting policies and the discontinuation of certain products in select states. These difficult decisions are crucial for maintaining financial sustainability in our pet insurance business,” the Nationwide statement explains.
The company reassured that the non-renewal of approximately 100,000 policies between spring and summer 2025 is strictly based on financial considerations and not influenced by factors like a pet’s age, breed, or past claims history.
Ahead of policy terminations, impacted policyholders will receive advance written notifications. However, the specific criteria for selecting policies for discontinuation remain undisclosed.
Discussing the rising costs in veterinary care, Carlson from Nationwide mentioned factors such as increasing prices of pharmaceuticals, general operational expenses, and other overheads affecting the industry.
In a report by the North American Pet Health Insurance Association (NAPHIA) in April, it was highlighted that the pet insurance sector experienced a 22 percent revenue increase year-over-year, with pet owners opting for policies to shield themselves from escalating veterinary expenses.
Currently, around 5.6 million U.S. pets are covered by insurance, predominantly by dog owners. The average annual premiums for 2024 were $675.61 for dogs and $383.30 for cats, as reported by NAPHIA.