The UK’s pet insurance market, worth some £2 billion in gross written premium, is under increasing pressure from rising veterinary costs, steady customer penetration and evolving care standards. For ManyPets’ product chief Sophia Pilkington-Miksa (pictured), this moment presents an opportunity for innovation.
Pet ownership has remained stable at around 50% of households, and while insurance penetration has held steady too, the market itself continues to grow. Pilkington-Miksa credits that to a combination of rising treatment sophistication and the value people place on their pets as part of the family. “Much of the growth in the market is coming from premium inflation, as opposed to the underlying market itself growing,” she said. But the pressure to deliver value in a more cost-sensitive environment is mounting.
Operationally, the sector is stretched. Pet insurance generates high claim volumes - ManyPets handles around 30,000 each month - yet many providers still rely on fragmented systems that are difficult to scale or automate. “Legacy systems and fragmented data make it very hard for incumbent businesses to respond,” she said.
Meanwhile, treatment costs have surged. With advanced procedures like MRI scans and stem-cell therapy becoming routine, average vet bills are far outpacing consumer inflation. Pilkington-Miksa estimates treatment costs have risen 70–80% in the past decade. “It’s very meaningful,” she said. “And customers are feeling it.”
Beyond pricing, Pilkington-Miksa said the structure of the pet insurance market can leave customers struggling to understand what they’re buying. “Competitors in this marketplace are designing their products to win on aggregators,” she said, which can lead to thinner products that prioritise price visibility. That’s not inherently negative, she notes, cost-conscious customers need options, but clarity is key. “They’re only problematic if they’re misleading or not clearly explained,” she said.
Switching between providers is another friction point. Pre-existing condition exclusions can trap policyholders with one insurer, even if they’re unhappy with the service. “If your pet gets sick and then you want to switch… that condition would be excluded,” she said. In that context, the ability to move freely becomes a proxy for competitive pressure and perceived value.
She believes the sector should continue focusing on clear communication and customer control. “Some cover is better than no cover, especially in a market when vet costs are as high as they are,” she said.
AI could help improve both accessibility and product relevance. Pilkington-Miksa imagines a future where customers don’t scroll through static product lists, but instead receive personalised cover suggestions based on a few intuitive inputs. “I can imagine quite a customer-centric flip of the current model,” she said.
Claims, too, are being reshaped by automation. At ManyPets, over half of claims are now processed automatically. With the right systems, she said, insurers can improve speed and reduce cost while maintaining service quality. “These are all benefits that we can pass on to the customer,” she said.
She also points to the potential of stronger data sharing and more consistent coding across the veterinary sector. Greater integration could help streamline processes and deliver faster outcomes for customers.
Pilkington-Miksa said the market is ripe for innovators to look beyond traditional models. At ManyPets, that means exploring a broader approach to pet wellbeing. “How do we make keeping your pet healthy, [and cover] easier and more affordable?” she said.
She believes pet insurance will remain highly relevant as veterinary care becomes more sophisticated and expensive. And as customers better understand the protection it offers, the “I’ll just save for it” mindset may start to fade. For providers, the challenge is ensuring their propositions keep pace - and that their products feel valuable, understandable and flexible enough to meet changing needs.
