Nationwide dropping pet insurance in some states amid high inflation
Scores of pet owners will have to find new insurance for their furry friends after Nationwide said it will stop offering some policies in certain states.
The company revealed Friday it planned to withdraw some of its pet insurance offerings in "some states" in a "difficult" move that would cause 100,000 pets to lose their coverage.
The owners of those pets will not receive renewals for their policies when they reach the end of their current terms between this spring and the summer of next year, according to Nationwide.
The company said the age, breed and prior claims history had nothing to do with the affected pets not getting their policies re-upped.
FILE: Chihuahua, is cared for at a mobile veterinary service for pets. (Credit: Mario Tama/Getty Images)
"We certainly empathize with the disappointment many of our pet families feel and will fully stand by the protections for which they have paid through the end of their current term," Nationwide said. "Our rates will continue to be fair and appropriately priced for the plan, pet, and breed."
Those facing non-renewal of their pet insurance will be told "well in advance" in writing, per Nationwide.
They may have to turn elsewhere to get coverage for their pets. Embrace Pet Insurance, for example, told FOX Business it was "ready to assist" Nationwide customers and others in finding pet insurance.
Nationwide said it was seeking to help "ensure a financially sustainable future for our pet insurance line of business" by dropping the 100,000 policies amid inflation in veterinary care and "other factors."
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Veterinary services in May were up a staggering 7.6% compared to the same time last year, the latest Consumer Price Index data released by the Bureau of Labor Statistics showed. From the prior month, they increased 0.3%.
"Like for other health care sectors, the cost of delivering veterinary medical services continues to rise," Dr. Rena Carlson, president of the American Veterinary Medical Association, said in a statement to FOX Business. "Reasons including rising cost of pharmaceutical products used to treat acute and chronic conditions; the need to acquire new technologies and the latest medical equipment to ensure veterinarians are able to continue to deliver the most effective and up-to-date care for their patients; and increases in general operating expenses, such as electricity, building rents/mortgages, telecommunication services, etc."
She also noted that more advanced specialty veterinary care has become available to pet owners and that veterinary care training has increased, things that have played into the rise in veterinary costs. And so has the overall increased longevity of pets, she added.
The pet insurance industry has been growing significantly in recent years as more owners seek it out to help with fees that encounter with getting their pets care.
Last year, the North American segment of the industry notched $4.27 billion from premiums, according to the North American Pet Health Insurance Association. That figure was 21.9% higher than 2022.
America and its over 5.6 million insured pets accounted for $3.91 billion worth of the North American pet insurance premiums in 2023, the association reported.