According to new research from insurance and credit information provider CRIF, pet owners in Britain are now the most likely in Europe to say their pet insurance costs are the highest they’ve ever been.
CRIF has found that 29 per cent of policyholders across Europe have seen a sharp increase in the price of pet policies in the last three years, with consumers in the UK the most likely to feel this way (36 per cent).
As a result, four in 10 (39 per cent) Brits with pet insurance now say their costs are the highest they’ve ever been, more than double the average across the rest of the continent (15 per cent), with 39 per cent of UK policyholders saying their pet getting sick or injured is now a major worry for them.
Overall, one in five (21 per cent) UK consumers now hold pet insurance policies, compared with an average of 12 per cent for Europe, reflecting the country’s reputation as a nation of animal lovers, but also the proportion of people exposed to sharp increases in costs.
Pet insurance prices in the UK have spiralled, with premiums rising across the board. This has been driven by a number of factors, including rising veterinary costs, lingering inflationary pressures, and a large increase in claims. According to the Association of British Insurers (ABI), a record £1.23billion was paid out in pet insurance claims in 2024, helping households to cover the cost of treatment for unwell and injured animals.
Despite rising costs, pet insurance remains a priority for many, with around one in six (17 per cent) Brits saying they would cancel other types of insurance before dropping coverage for their animal. As well as this, a third (32 per cent) say they insure their pet’s life but not their own, significantly higher than the average across the rest of Europe (13 per cent).
Sara Costantini, regional director for the UK and Ireland at CRIF, said: “The UK has always been a nation of animal lovers and with the number of pet owners only continuing to rise, a knock-on increase in the price of pet insurance policies has led to increased financial pressure for many Brits.
“In response, pet insurers should do more to ensure their policies deliver value. Unlike other areas of insurance, the pet sector seems less sophisticated in areas like data analytics and the range of sources it draws on. Innovative solutions could streamline important processes, such as fraud detection, and pricing.
“Greater investment in these areas can help pet insurers to offer more personalised and competitive products, meet the needs of British pet owners, and improve customer satisfaction without compromising profitability.”
Solutions like CRIF’s Pet Check and Pet Score allow insurers to validate pet details in real time, providing a more holistic risk assessment, and to enhance the policy pricing and underwriting processes. The services help insurers to better support pet owners while also more effectively identifying potential fraud and reducing genuine customer disputes.
The findings form part of CRIF’s latest Banking on Banks report, which identifies the biggest changes to the financial services sector across Europe over the last decade, drawing on the views of both consumers and senior financial services professionals working in the UK, and serving European markets. CRIF’s second report, to be published later in 2025, will look at the trends and issues that are expected to shape European financial services in the decade ahead.
