(ConservaiveInsider.org) – Nationwide insurance released a statement on Friday, June 14 announcing that they plan to cancel insurance coverage for 100,000 pets across the country due to rising veterinary costs.
The statement by Nationwide indicated that the plans will not be cancelled immediately, but will simply not be renewed once their current plan expires, meaning the cancellations will occur over the next year. Their reasoning for cancelling these plans was due to inflation and rising costs of veterinary visits and treatment, stating that this is part of their strategy to “maintain long-term viability” as a company.
Nationwide is the largest provider of pet insurance in the United States, covering over 1.2 million animals, including cats, dogs, rabbits, birds, and other exotic pets.
A study run by NerdWallet earlier this year stated that nearly a quarter of pet owners now have an insurance plan for their pets. Pet insurance helps owners cover costs for many health concerns and injuries their animals may suffer from, and some plans even help with ongoing treatment for chronic conditions. According to the study, nearly 60% of people who purchased insurance for their pets did so for “peace of mind,” as they may not be able to cover an emergency medical bill for their pet.
According to the North American Pet Health Insurance Association, pet insurers in North America made over $4 billion in profits in 2023, a nearly 22% increase from 2022. Of that figure, $3.91 billion was from the 5.6 million insured pets within the United States.
The President of the American Veterinary Medical Association, Dr. Rena Carlson, shared that inflation has affected the veterinary industry like every other industry, with rising costs of pet pharmaceutical products, the high costs of new medical equipment and technology so vets can provide the most up-to-date care, and rises in operating costs, such as building rents and mortgages, electricity, and other utilities. However, she also added that such advances in veterinary medicine have increased the longevity of pets.
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