With the global pet insurance market predicted to grow at a considerable rate in the coming years, insurance providers are investing in new product solutions which are able to provide more accurate and personalised premiums.
At the same time, many owners are taking a savvier approach to renewing pet insurance, recognising policies tend to increase when up for renewal. There are a range of factors which influence pricing but the biggest two are age and breed of an animal.
Choosing the right ‘pawlicy’
Certain breeds of animal are naturally more susceptible to specific diseases and chronic illnesses. As an example, French Bulldogs are at higher risk of health issues related to breathing, dental and eyesight compared to other small dog breeds – according to veterinary charity People’s Dispensary for Sick Animals (PDSA). With a higher chance of becoming ill, they consequently have more expensive insurance premiums.
Equally, aging animals carry greater risk of needing medical attention, making it costly to switch policies during the latter stages of a pet’s life. In fact, some insurance providers only offer cover to customers if the pet is under the age of nine. Switching from a lifetime policy to per-condition may result in a cheaper premium in the short-term, but this is not always the case and will also depend on the medical history of the animal.
An evolving landscape
The good news is the insurance industry is evolving and, here at Aquarium, we are at the heart of this technological change. Our platform is now offering pet insurance companies – which include many of the UKs most well-known brands – to offer tailored premiums to every customer based on their individual circumstances, bringing costs down and improving the customer experience.
By using Big Data, artificial intelligence (AI) and machine-learning, our platform can gather, monitor and analyse the pet insurance market in real-time to automate policy and claims management processes, as well as offer accurate and competitive policies for customers. This is helping keep renewal prices to a minimum – something every pet owner would like right now.
Discover more about our work transforming the pet insurance sector here.