Nationwide discontinues 100,000 pet insurance policies amid escalating expenses
Nationwide insurance has announced its plan to not renew around 100,000 pet insurance policies amid surging veterinary costs. The company attributed these changes to inflation and other economic pressures affecting the financial sustainability of their pet insurance operations. Nationwide assured that the decision to cancel policies is not based on the age, breed, or claim history of the pets. Affected policyholders are set to receive written notifications with the cancellations scheduled to occur between spring 2024 and summer 2025. This move comes at a time when there are more than 5.5 million dogs and cats insured across the nation as of 2023.
Nationwide insurance said it will not be renewing approximately 100,000 pet insurance policies due to rising costs of veterinary care.
“As pet lovers ourselves, we understand the emotions connected to the protection of our family pets. Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in some states — difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business,” Nationwide wrote in a statement on Friday.
The cancellations will not be made on the basis of a pet’s age, breed, or prior claims history, according to the statement. Policyholders will be notified in writing ahead of the cancellations, which will take place between spring 2024 and summer 2025.
More than 5.5 million dogs and cats were insured in 2023, according to the North American Pet Health Insurance Association. Pet insurance can cover accidents, illnesses, or routine wellness costs, depending on the plan.
Nationwide claims to be the largest pet insurance provider in the United States, according to USA Today, with more than 1.2 million pets insured.
“I was willing to pay this very large amount to get this coverage because I love my dogs. They’re my family. They are not like a car, or even a house, or a thing that can be replaced or rebuilt, they are important to me,” Christie Keith, a freelance writer in Michigan, told the outlet. “No one else is going to take on old dogs with pre-existing conditions and even if they do they will exclude all of the pre-existing conditions. … I don’t know what I’m going to do.”
“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’s statement said.
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