AMERICA: I'm told by news media that Nationwide is America's largest pet insurer. And they've decided to stop insuring 100,000 pets. But read on.
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| Image: The Canine Review. |
It seems very bizarre because normally it is people who decide to stop insuring their pet's health because the insurance premiums are too high. This is the other side of the coin as this insurance company blamed inflation and the cost of veterinary care as two reasons why they have decided they can no longer insure pets.
It would seem that some pets are uninsurable as far as Nationwide is concerned. It is pretty cynical because the policy concerns pets that need insurance. Nationwide want to insure health pets!
It has 100,000 pets on its books whose insurance policies are being terminated. There will be many customers who will no longer be receiving pet health insurance when their policies terminate unless they can find an alternative. Some pet owners are concerned that they won't be able to find an alternative at a suitable price.
Another problem which may be the central problem and which is not been fully clarified to me is that there have been recent underwriting changes in the insurance industry concerning Nationwide. The company feels that these changes have made it unviable to continue.
The announcement was quite sudden and made in a statement on June 14. All 100,000 policies will not be renewed at the date of their renewal. The non-renewal is not connected with the companion animal's prior claims history - they say. True or false?
'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.'
Overall the company says that it it insures more than a million pets - the largest in the country.
Profitability
The reporting is a little confusing and I'll tell you why. Nationwide insure 1 million pets but they are dropping insurance policies on 100,000 pets which indicates that they are being selective and that the termination of these insurance policies is connected with the high level of claims made by some customers because their pets are inherently unhealthy. That's my opinion until I receive better reporting.
And this thought of mine appears to be supported by the fact that many of the affected premiums are for older pets with pre-existing conditions.
My gut feeling is this: this insurance company has decided to take strong action to improve profitability and they are achieving that by stripping out of their customer database those pets that require consistent and routine treatment because of inherited and long-term or chronic illnesses. On the face of it is a cynical move to increase profitability by being more selective in the animals that they insure.
In response, a Facebook page has been set up by disgruntled customers entitled "Dropped by Nationwide Pet Insurance Whole Wellness? Join Us!
I've applied to join the group as it is private. I've not received an acceptance as at the time of publishing this article.
As I said, I think this is a reflection on the fact that some dog breeds are inherently unhealthy such as the French Bulldog. I have boldly claimed that that dog breed is the most unhealthy of all the dog breeds with 21 different inherited illnesses. Extraordinary; right? Other bulldogs have more than the usual inherited health issues.
Avoid extreme breeding e.g. flat-faced dogs and unnatural looking animals. Mess with anatomy and there is a price to pay - literally.
It would seem that some animals are becoming uninsurable as is the case by the way with some vehicles. Interesting correlation here because in the UK some Range Rover models are uninsurable because they're being stolen all the time forcing the manufacturer to start up their own insurance company!
Self-insurance
Pet owners really should remind themselves that pet insurance companies are moneymaking machines. If they can't make a good profit from ensuring pets they either drop the animal from their books as is the case in the story or they put up the premiums. Either way they make more money.
It's another reminder that the best form of pet health insurance is to start your own savings account which is ring fenced. This is called self-insurance. Save $50 a month ideally before you adopt a companion animal and then when you have adopted the animal you have some savings in the bank allocated solely to treating your companion animal.
In addition, I would do your research on inherited diseases afflicting purebred dogs and cats. It's important you know about them so you can decide whether pet health insurance is necessary or a wise choice in respect of your to be adopted paired or adopted pet.
RELATED: Genetic diseases in cats.
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