PET OWNERS IN BRITAIN PAY STEEPEST INSURANCE COST IN EUROPE – REPORT
Source: Insurance Business (Extract)
Posted: August 22, 2025
Pet owners in the UK are paying the highest insurance premiums in Europe, with many reporting that costs are at their highest level on record, according to new research from CRIF.
The study reveals that 36% of UK policyholders have experienced significant increases in pet insurance premiums over the past three years—well above the European average of 29%. Nearly four in ten (39%) British customers now say their premiums are the most expensive they’ve ever paid, more than double the rate reported in other European countries (15%).
These rising costs come amid soaring veterinary fees, persistent inflation, and a record volume of claims. Data from the Association of British Insurers (ABI) shows payouts reached £1.23 billion in 2024—marking the third consecutive year that claims exceeded the £1 billion mark.
Despite the financial pressure, the UK remains Europe’s most insured nation when it comes to pets, with 21% of consumers holding pet insurance policies, compared to just 12% across the continent.
For many households, pet insurance is now viewed as more essential than other forms of cover. According to the study, 17% of UK respondents would cancel another insurance policy before letting go of their pet cover. Additionally, 32% insure their pet’s life but not their own—more than double the European average of 13%.
The trend reflects wider challenges in the UK insurance market, where motor, home, and health insurance premiums have also surged. Motor insurance rose by over 25% in 2023, driven by higher repair costs and parts shortages, while home insurance has been affected by inflation, supply chain disruption, and a rise in extreme weather claims. These pressures are now spilling over into specialist areas like pet insurance.
Industry experts say the pet insurance sector must evolve to remain sustainable. Sara Costantini, CRIF’s Regional Director for the UK & Ireland, noted that the UK market still lags behind others in adopting data-driven solutions to reduce costs and personalise coverage. She highlighted the need for investment in fraud detection, real-time validation, and analytics to enable more competitive pricing and better value for consumers.
The findings are part of CRIF’s Banking on Banks report, which monitors trends across Europe’s financial services sector. A follow-up study due in late 2025 will explore how pet insurers are adapting to rising demand and long-term shifts in consumer behaviour.
