Insurance premiums for pets stabilize, according to Pearson Ham's assessment
In a recent development, the average top-five quoted prices for Lifetime pet insurance cover decreased by 2.4% in Q2 2025. This shift reflects nimble, data-driven pricing by insurers who recognize high consumer price sensitivity and adjust accordingly to maintain competitiveness while managing capacity and margin risks.
The Pearson Ham Group, a leading authority on pet insurance pricing, released the Pet Insurance Pricing Index for Q2 2025, which showed this decrease. This reverses a 2.2% rise recorded in Q1 2025.
Frances Luery, a representative from Pearson Ham Group, made a statement about pet insurance, explaining that the cooling in Lifetime prices indicated the market’s responsiveness. However, other cover types like Time-Limited and Maximum-Benefit products still show different pricing dynamics.
The pricing variations for pet insurance are influenced by pet type and breed. However, no specific details about these variations were provided for Q2 2025.
The upward momentum in pet insurance premiums observed at the start of 2025 has stalled. In March 2025, the Pet Insurance Pricing Index from Pearson Ham Group showed a continued upward trend for Lifetime policies, with premiums rising by 0.6% compared to the previous month. This rise brings premiums for Lifetime cover to 12% higher compared to Q2 2024.
In the Q4 2024 Pet Insurance Pricing Index, mixed pricing trends were observed in the pet insurance market. The latest data suggests a more competitive market in Q2 2025, with insurers adjusting their pricing strategies to meet consumer demands and maintain market share.
[1] Source: Pearson Ham Group Press Release, Q2 2025 [2] Source: Frances Luery, Pearson Ham Group, personal communication, Q2 2025
- In light of the Q2 2025 Pet Insurance Pricing Index by Pearson Ham Group, it appears that the adjustments in the pricing trends for Lifetime pet insurance cover are primarily driven by finance-focused strategies, aiming to maintain competitiveness amidst market dynamics and consumer price sensitivity.
- As the Q2 2025 data suggests, the cooling of the average top-five Lifetime pet insurance prices could signal eventual shifts across the entire pet insurance market, potentially influencing other cover types such as Time-Limited and Maximum-Benefit products.
