Pet owners in Britain are paying the steepest insurance costs in Europe, with many saying premiums are now at their highest point on record, according to new findings from CRIF.
The research shows that more than a third of UK policyholders (36%) have seen sharp increases in the cost of their pet cover over the past three years, compared with a European average of 29%. Four in ten (39%) British customers now say their premiums are the most expensive they have ever been, more than double the figure reported elsewhere in Europe (15%).
The rising costs come against a backdrop of climbing veterinary fees, persistent inflation and record levels of claims. Figures from the Association of British Insurers show payouts reached £1.23 billion in 2024, the third consecutive year that pet insurance claims have topped £1 billion.
Despite the financial strain, the UK remains the most heavily insured nation in Europe when it comes to pets. One in five consumers (21%) now hold policies, compared with just 12% across the continent.
For many, animal cover has become a higher priority than other types of protection: one in six (17%) say they would cancel another insurance policy before dropping cover for their pet, while a third (32%) insure their pet’s life but not their own, a figure more than double the European average (13%).
The squeeze on pet insurance mirrors broader challenges across the UK insurance market, where premiums in motor, home and health have also risen sharply.
Motor insurance costs climbed by more than 25% on average in 2023, according to industry figures, as insurers faced higher repair costs and parts shortages. Home insurance premiums have also trended upwards, driven by inflation, supply chain issues, and an increase in extreme weather-related claims. These pressures are now filtering through to specialist lines such as pet cover, where rising veterinary expenses are having a similar effect to higher repair bills in motor.
Industry experts warn that the pet sector is under pressure to deliver better value. CRIF’s UK & Ireland regional director, Sara Costantini, said the market remains less advanced than others in using data analytics to manage costs and personalise policies. Investment in technology, such as fraud detection and real-time validation tools, could allow insurers to offer more competitive pricing while meeting rising demand.
The findings form part of CRIF’s Banking on Banks report, which tracks changes across European financial services. A follow-up study later in 2025 is expected to highlight the longer-term trends shaping the insurance market and the challenges facing pet insurers as more households seek cover.
