The pet insurance market is navigating rising vet costs, tighter regulation, and increasing demands for transparency.
British pet insurers are now coming together to reshape the industry. Can it be reinvented for a smarter, more sustainable future?
We spoke with Sharon Brown, founder of the new Pet and Equine Insurance Association (PEIA) – aspiring to unite insurers, vets, and stakeholders to foster collaboration – to get her perspective on the challenges and opportunities ahead.
What sparked the idea to start the association?
The pet and equine insurance association was born out of a clear need for a united voice in a fragmented ecosystem. With rising vet costs, consumer mistrust, and changing regulations, it was clear we needed a united front. So, we brought everyone – insurers, MGAs, brokers, tech providers – together to tackle these challenges collaboratively. It quickly grew from an idea into a space for driving transparency and sustainable practices.
What’s the biggest challenge pet and equine insurers face today?
Affordability and sustainability. As vet costs climb, premiums inevitably rise. This puts pressure on customer retention and challenges the very viability of insurance products. Unlike traditional insurance lines, pet and equine insurance sit at the crossroads of consumer emotion, complex medical decisions, and a rapidly consolidating vet market. It's all about insuring animals and protecting the bond between owners and their companions.
How is tech changing the game in this industry?
Technology isn't just catching up, it's actively delivering huge value now. Digital workflows, wearables, and health apps provide data for sharper risk assessment, faster decisions, and seamless customer experiences. Add online vet triage for efficient care guidance, for boosting satisfaction and optimizing costs. And using AI-powered analytics for fraud detection – tech is essential for protecting insurers and policyholders alike in today's market.
What trends should we all watch over the next few years besides AI?
Watch preventative care – it’s key for both customer benefit and sustainable insurance models. Expect innovation in distribution, perhaps embedding insurance within broader pet services or retail channels. ESG factors like ethical treatment and responsible pricing are gaining traction quickly. And of course, greater scrutiny from regulators will drive change across the value chain.
Is there room for more collaboration between insurers across countries?
Absolutely, and frankly it’s overdue! Many of the challenges we’re facing, from fraud to cost inflation, are not unique to the UK. Sharing insights, claims trends, and tech innovation globally could significantly strengthen individual markets. There’s also an opportunity for aligned standards and best practices that could benefit both insurers and policyholders, especially as pet ownership becomes more global and travel-friendly.
The Path Forward: Opportunity in Change
While the UK pet insurance sector faces challenges, Sharon Brown's insights underscore a clear opportunity. Addressing affordability through, leveraging technology for efficiency and insight, and fostering open collaboration. As regulatory landscapes evolve and consumer expectations rise, the insurers who embrace transparency and work proactively within the ecosystem, as PEIA encourages, are best positioned to thrive.
