The nation’s top pet insurer is dropping some policies
- Nationwide Pet plans to reduce its policies by about 10%
- It blames higher pet medical costs, other factors
- Premiums are rising for many other types of insurance
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(NewsNation) — The top pet insurer in the U.S. has decided that the best way to keep its pet insurance business healthy is to insure fewer pets.
Nationwide Pet said it won’t renew about 100,000 policies, slightly less than 10% of its customers, in the coming months.
“Inflation in the cost of veterinary care and other factors have led to … difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business,” Nationwide said in a statement.
Nationwide says it was the first insurance company to offer policies on pets and has paid billions of dollars in claims over the past 40 years.
Another company that offers pet insurance, MetLife, says it will reach out to pet owners and possibly offer them coverage. MetLife’s website offers dog insurance starting at $15 a month, and cat insurance starting at $9 a month.
The cost of many categories of insurance has risen sharply. Auto insurance premiums in March were 22% higher than in March of last year. Insurance companies say part of the reason is the sharp spike in auto prices since the pandemic created computer chip shortages and supply chain bottlenecks.
Homeowners insurance increased by more than 11% nationwide last year, but that rate was significantly higher in many states. Premiums rose by 23% in Texas and 22% in Arizona in 2023.
Experts blame the increases on several factors: location, property value, natural disasters, rising construction costs and higher claims payouts.
