Insurance of the Future – 9 Pet Insurance Trends to Know

The take up of pet insurance is on the rise and for good reason. As our furry friends become more and more like family members, we’re increasingly willing to pay for their health care. With growth comes change, and insurance industry news reveals there have been many insurance trends and changes in recent years.

The global pet insurance market is expected to reach around NZ$50 billion by 2030. In New Zealand in 2022, the market was valued at NZ$30 million, and it’s expected to grow to NZ$50 million by 2025.

Here are some pet insurance trends to look out for.

#1 Insurance trend – Growing popularity of digital pet insurance

Digital-first pet insurance companies (like PD Insurance) are making it easier than ever to get vet treatment cover for your dog and cat. You can complete the entire process online from the comfort of your own home – including signing up, comparing plans, getting quotes, and purchasing a policy.

On top of that, it can be more affordable than traditional pet insurance because digital insurers have lower overhead costs. This means they can pass these savings on to their customers.

#2 Insurance trend – Expansion of coverage options

Insurance industry news concurs with our own experience in that companies are expanding the types of coverage they offer. In addition to accidents and illnesses, some companies now offer coverage for things like worming treatment, alternative therapies, and even loss of your pet.

Here are some other coverage expansions we’ve seen:

Third party liability cover

Some pet insurance providers now offer third-party liability cover, which insures you if your pet injures someone or damages someone else’s property.

For example, if your dog bites someone, this can help you pay for the victim’s medical bills and other expenses. Or, if your cat scratches someone’s car, third-party liability cover can help you pay for the damage to the car.

PD Insurance includes third party liability cover on ALL our plans.

Hereditary and congenital conditions

Some pet insurance policies now include coverage for hereditary conditions, which is big news. These are illnesses or diseases that are always inherited from parents’ genes and can develop at any time in life. They’re different to congenital conditions, which are always present at birth but only sometimes inherited.

Hereditary conditions can range from breed-specific issues to common genetic disorders in certain species. PD Insurance Classic and Deluxe dog insurance and cat insurance plans cover certain hereditary conditions once your waiting period is over.

Wellness packages

These days ‘wellness care’ is a common add-on you’ll see offered by pet insurance providers. This sort of cover helps pay for things like vaccinations, desexing and other minor bits and pieces.

One way to view this extra is that it helps pay for vet visits you plan for, while your main cover supports you for unanticipated accidents, illnesses, infections, etc. We’re talking those bigger vet treatment costs that could seriously eat into your savings or max out your credit card.

Our suggestion? When deciding whether to pay even more for a wellness package ‘benefit’, consider whether you’re able to budget for these predictable costs instead.

#3 Insurance trend – Rise of telehealth

Telehealth is becoming increasingly popular for pet health care, and this is likely to continue in 2023. It gives busy pet parents the option of virtual consultations with vets, which can save them time and money.

They’re usually done to determine whether your pet’s health issue is serious enough to bring them into your local vet’s rooms. That is, whether they really need a physical consult. They can be highly beneficial in that respect but won’t replace the value of an in-person vet visit.

You can find out more about virtual vet consultations here and in the video below:

#4 Insurance trend – Increasing use of data analytics

In 2023, data is gold. Our experience is backed up by insurance industry news that explains companies are increasingly using data analytics to help inform product and service improvements. Analysing data such as claims experiences and website visit journeys can help them identify trends in pet health and pet ownership then develop more targeted coverage options.

Data analytics can also improve the risk assessment and underwriting processes, which helps keep premiums fair and claims to be processed efficiently.

Examining the data can also help improve customer service. For example, it could identify customers who are at risk of lapsing their policies and offer them reminders and incentives to renew. It can also be used to track customer satisfaction and to identify areas where the customer experience can be improved.

#5 Insurance trend – Customer service even more crucial

Speaking of customer service … as pets become more and more like family members, pet parents expect the same level of customer service from their pet insurance company as they would from their health insurance providers. Or better!

When your treasured furry family member is ill or injured you want to be able to focus on getting them well. And that means thoughtful, quick service in claims and reimbursement.

So, pet insurance companies are realising what PD has always known – giving your members excellent service is essential for success. In 2023, we can expect to see more companies investing in customer service training and support. That’s something we do heavily – one reason why we won the 2022 Canstar Most Satisfied Customers Award for Pet Insurance! 😊

#6 Insurance trend – Lifetime pet insurance for the win

Lifetime pet insurance is a type of policy that covers your pup or cat for their entire life, regardless of age or conditions that arise over time.

As long as you keep paying your premium, companies like PD Insurance can provide pet parents peace of mind knowing they’ll have plenty of help in affording their fur kid’s medical care as they age.

Speaking of insurance trends of the present and future, you might also be interested in learning about pet insurance’s past…. Read our article that looks at “When did the first pet insurance start?“.

#7 Insurance trend – Choose your excess and co-payment

Some insurance providers now offer different excess and co-payment options so people can tweak their premium by choosing different levels. For example, PD Insurance has three fixed dollar amount excess payments to choose from and we pay up to 100% back on the vet bills claimed.

It’s worth noting we only charge one excess payment for each claimable event, rather than one for each vet bill for the claimable event. That’s definitely something to watch out for.

#8 Insurance trend – Better connections

The rise in tailored communications through email and SMS, social media, blogging, vlogging, paid content on insurance industry news channels and the like means service providers are speaking to customers on the platforms they’re on and about the topics they care about. The power is in the hands of the consumer to choose how to interact.

It’s never been more important to connect with customers in useful, relevant, and impactful ways. With humans receiving thousands of messages every day, businesses must work hard to cut through and build a connection.

#9 Insurance trend – It’s about more than insurance

More than ever, pet parents want the companies they use to reflect their values. Beyond the products they provide, what are they doing to help the community? Are their business practices ethical and do they practice social responsibility? More and more, people want to know that when they pay their premium it’s helping others.

PD Insurance has worked with (and continues to work with) some great partners in the animal care space. These include the Department of Conservation, Dogs New Zealand and Healthy Pets New Zealand. Some of our projects having included advocating for the use of colour-coded leads and ethical breeding standards and providing funding for research that allows the vet industry to make advancements in veterinary medicine and enhance pet care.

We’re all about soft landings – for our members AND the community.

Trend-setting insurance

Want a trustworthy coverage provider that’s on top of insurance trends and always making insurance industry news? PD Insurance is your answer. We’re dedicated to a long-term vision of consistently providing pets and their people softer landings in the most crucial moments.

Our fur kids are prone to many hereditary illnesses, allergies and accidents. A value-rich, flexible pet insurance plan like ours will help you cover the cost of a wide range of treatments. Why not get a quote today?