Pet insurance claims from members of the Association of British Insurers (ABI) exceeded £1 billion for the third consecutive year in 2024, with total pay-outs reaching a record £1.23 billion, according to new data from the trade body.
The figure marks a 4% increase on 2023 and represents a 103% rise compared to a decade ago. Claims relating to dogs accounted for most of the total at £933 million, followed by cats at £232 million and other pets at £61 million.
This growth reflects broader market trends. The UK pet insurance market reached approximately £1.75 billion in gross written premiums in 2023, with forecasts indicating continued expansion. Analysts project a compound annual growth rate of 6.1%, suggesting the market could grow to £2.35 billion by 2028.
In total, 1.8 million claims were submitted to ABI members throughout 2024, the highest volume on record. This equates to an average of approximately 4,900 claims per day.
Despite these high claim volumes, insurance uptake remains limited. ABI data shows that 4.6 million pet owners had insurance policies in place during the year, up 3% from 2023 and 33% higher than pre-pandemic levels in 2019.
However, this still only covers a fraction of the total pet population. Industry reports indicate that just 25% of dogs and 12.1% of cats in the UK were insured in 2023, pointing to considerable potential for further growth in coverage. Cost remains a common barrier, though rising veterinary expenses may shift this perception.
Average claim costs have continued to increase, rising by 3% to £685 in 2024. Veterinary procedures for conditions such as elbow dysplasia, a common cause of forelimb lameness in large breed dogs, can exceed £50,000. Incidents involving the ingestion of harmful substances or objects, such as chocolate or household items, can result in treatment costs of around £4,000.
The financial contrast between premiums and claims is notable. While the average pet insurance premium stood at £389 in 2024, average claim amounts were significantly higher. This discrepancy suggests that, for many policyholders, the cost of coverage may be outweighed by the benefit of claims reimbursement, particularly in cases involving complex or emergency treatment.
Jonathan Purvis (pictured above), senior policy adviser for general insurance at the ABI, said more people were taking financial precautions to cover veterinary expenses.
“Insurance provides peace of mind that costs will be covered if your pet is ill or injured, allowing ‘pawrents’ to focus on caring for their pet at what is already a stressful time,” Purvis said.
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