American insurance company Nationwide stops insuring 100,000 cats and dogs

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. 

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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P.S. please forgive the occasional typo. These articles are written at breakneck speed using Dragon Dictate. I have to prepare them in around 20 mins.

Cat and dog health costs are rising steeply in the UK and it undermines the human-pet relationship

The Association of British Insurers (ABI) tells us that in 2022 insurers paid out over £1 billion. It is the highest on record reported by members of the ABI. It's a substantial increase and they say that it reflects the high cost of veterinary treatment, which results in more expensive claims on pet health insurance policies.

Cat and dog health costs are rising steeply in the UK and it undermines the human-pet relationship. Image: MikeB.

Pet owners are taking out more at health insurance policies in the UK in order to cover these increased investment costs. And, arguably, the increased veterinary costs are driven by the fact that people are taking out more health insurance policies. 

Inflationary upward spiral

It is a self-serving upward spiral. It is inflationary. And it is not good for the human-to-pet relationship as it simply means that it becomes more expensive to look after a cat or dog.

This is because if insurers are paying out more money to clients to cover inflated veterinary bills, they're going to put up the insurance premiums. Pet owners will be paying out more on a monthly basis year-on-year than they were in the past. 

The whole process is inflationary. Underpinning this is pet health insurance plus the fact that independent veterinary clinics are being brought up rapidly by big business to be run as commercial enterprises primarily rather than the focus being on providing excellent veterinary care which is what happens when veterinarians form a partnership which owns the business.

In terms of veterinary treatment, in the UK, the country is moving in the wrong direction. Once big business gets hold of the veterinary marketplace it damages it. That's my personal opinion.

In fact, big business tends to damage everything decent ultimately because their priority is making a profit and they often go too far. The ABI tells us that for 2022, there was a 28% increase in pet health insurance claims from 2021.

Three quarters of the claims concerned dogs while 20% concerned cats with the remainder concerning other companion animals.

For dogs, the number of claims jumped by 35% compared to 2021, to 1 million claims. Payouts increased by 23% to £800 million. Claims concerning cats rose by 20% with payouts up 22% to £184 million.

The average pet insurance claim was for £327 which was marginally up by 1% from the year before. The ABI states that for spinal surgery the cost will be in the order of £8000-£10,000. 

Modern dachshund is too low to the ground

My mind turns to the dachshund which is known to have spinal problems because, through selective breeding, the dog is unnaturally elongated with short legs due to the presence of dwarfism. 

The ABI don't provide me with a breakdown of claims concerning spinal problems but I suspect a number of them concern the dachshund. In which case, we can point to extreme selective breeding as the cause.

Anxious cats are pushing up the price of pet insurance in the UK

The Times newspaper has a headline which interests me: "Why anxious cats and dogs are pushing up the price of pet insurance". They refer to a guy, Sean Feast, who had to work from home during the pandemic lockdown. Until then he was unsure why he is cat, Marble, a four-year-old tabby, was difficult. She was hard to control and "bitey". 

Marble and Sean Feast. Photo: The Times. Great newspaper. Highly recommended!

In other words, Marble tended to bite people even though they were kind to her. She was always aggressive towards people. He discovered why while he was at home durning the extensive lockdown. A neighbouring Bengal cat frequently came through the cat flap for a visit. This dramatically disturbed Marble's life. It was a massive intrusion onto her territory which made her anxious. It would seem that the Bengal cat was quite dominant and that Marble is quite timid by comparison. She had no outlet for her anxiety. It would come out in aggressivity towards people who wanted to be kind to her.

This is called redirected aggression in the cat world. Sometimes people think that their cat is simply aggressive and nasty. There is always a good reason why a cat demonstrates apparent unprovoked aggression. And redirected aggression is not uncommon.

RELATED: Domestic cat attacks their own tail because of redirected aggression.

But the purpose of this short article is in the title. I'm concerned that there are more anxious cats than people are aware of. I believe that cat caregivers should be alert to anxiety in their cat. I believe that it is not that far from the surface. Domestic cats are inherently very alert to what is going on around them and it does not take a lot to energise them. I believe that this predisposes them to anxiety. It is inherent as part of their survival strategy. And as they live in the human world, a land of giants, a slightly timid cat may suffer an almost continual level of slight anxiety.

Certainly, Covid, and the long lockdowns followed by the caregiver going back to the office has disturbed the routines and rhythms upon which the domestic cat relies so heavily. This, too, is likely to heighten anxiety levels. There is, if we are honest, a great problem with cat owners who have to be away from home all day, sometimes for long hours. 

RELATED: Picture of a young cat with a large elderly dog whose separation anxiety was cured by this confident cat.

Under these circumstances cats will often become anxious. It'll be a form of separation anxiety. This can be manifest in health issues such as cystitis and behavioural issues brought about by isolation and boredom if they are confined to the home. And of course cat owners who are away all the time are not able to observe their cat to notice the kind of pressures that they might be under from neighbouring cats if they are allowed outside.

I believe that it is beholden upon cat owners to prioritise the confidence levels in their cat. They should do all they can to boost their domestic cat companion's confidence to make them feel as calm and relaxed as possible. This means plenty of routines in their life which makes them feel more secure. It also means being around as much as possible and creating a calm environment in which they are allowed to express natural behaviour which at heart is wild cat behaviour. 

RELATED: Study says that cats are prone to separation anxiety in homes with two female residents.

This is the raw cat as Jackson Galaxy calls it. The raw cat within - the wildcat within. If you meet the demands of the wildcat they feel whole. If you add to that a friendly and predictable environment they feel whole and content.

I wasn't able to read The Times article but I suspect that the increased insurance premiums arise out of the fact that with feline anxiety you get health problems. The classic one is cystitis commonly called idiopathic cystitis. This causes inappropriate elimination. But there will be other perhaps more insidious health issues.

Eleven percent of UK's domestic cats have never been to a veterinarian

An online survey by the pet food manufacturer Royal Canin found that out of 2,000 participants, 11% of them had never taken their cat to a veterinarian and 43% had not seen a veterinarian within the last year. This implies that 11% of cats are neither spayed nor neutered and are therefore intact and can breed. A source of unwanted cats.

Cool vet deals with angry caracal. Screenshot.

The main reason given is that their cat looked healthy and therefore did not need to go to a veterinarian. The counterargument is that cats hide pain and discomfort very well and therefore the criteria that your cat looks well is not a good one. Cats should be taken to a vet for a checkup to catch diseases at an early stage. Cats might hide their illness so well that it is only picked up at a late stage when treatment is less effective.

A second barrier is the cost of veterinary treatment. Surprisingly, out of the 2,000 participants about 50% had pet insurance but even then the cost of veterinary treatment prevented them taking their cat to a vet. Perhaps this means that their insurance did not cover the reason why their cat needed to see a veterinarian.

Another barrier is the stress of taking an animal companion to veterinarian. It is simply an uncomfortable activity to be avoided. Thirteen percent felt this way. If they were unable to take their cat to a veterinarian, 40% said that they would arrange for a home visit while 29% said that they would search for information online as an alternative and 26% would ask friends and family for advice.

Despite what is described as an obesity epidemic amongst the domestic cat population, only 11% of cat owners in the UK thought that there cat was overweight. It is felt that almost 40% of cats in the UK are overweight. Overweight cats are at an increased risk of developing serious diseases and shortened lifespan. Dogs are taken to vets more often than cats (my comment).

Pet insurance for cats in apartments with dangerous cladding

I'm just thinking about the difficulties that cat owners might have in obtaining insurance for their cat if they live in apartment blocks with dangerous cladding. This is a UK specific problem but you may have heard about the Grenfell fire which was devastating (see photo below). It was caused by highly inflammable cladding which wrapped around the block turning the tower into an inferno and killing 72 people who were told to stay inside by the fire service. But that's another point.

Photo on Wikipedia and by Natalie Oxford - https://twitter.com/Natalie_Oxford/status/874835244989513729/photo/1

Thousands of people have now been condemned to lives of fear after the government missed its target of replacing flammable cladding on high-rise buildings.

Replacements of cladding has only taken place in 155 tower blocks out of 455 high-rises. Residents of these blocks are facing buildings insurance premium hikes of almost 400%.

They can't sell their properties because buyers can't get a mortgage on them. The banks have simply washed their hands of them in terms of lending money against the buildings. In some of these blocks there will be people living with domestic cats. How does this chaos affect them if they want to take out pet health insurance?

I don't know the answer and I can't find the answer but I suspect that they will not be able to obtain insurance for their pet. Think about it: a fire takes place and they rush to abandon their apartment, leaving their cat behind. The cat is injured or killed. That is the potential scenario and I'd be very surprised if companies providing pet insurance would cover that scenario knowing that the cladding surrounding the building is flammable.

Maine Coon cat: top 5 health conditions claimed for under pet insurance

Tesco Bank Pet Insurance usefully provide the public with the top five health conditions claimed for by owners of the Maine Coon cat in the UK. It is interesting and perhaps revealing. The information may not be generally indicative of Maine Coon health issues. It tells us that the Maine Coon in the UK typically might suffer from these health issues. They appear to point to diseases of internal organs. 

Average Treatment Costs Table

Condition	Average treatment cost
Lump	£439.47
Diabetes	£221.93
Pancreatitis	£425.21
Hyperthyroidism	£229.70
Organ tumour	£949.61

Average annual pet insurance premiums by cat breed - top five

The information in the table relates to the period 01/01/18 to 31/12/18 and refers to paid treatments including excesses. They say that Maine Coons can suffer from specific ailments although they describe the breed as relatively healthy. 

They can suffer from the common heart condition hypertrophic cardiomyopathy which affects middle-aged cats. The heart grows bigger and the symptoms are shortness of breath, reduced appetite and a reduction in activity levels.

They mention tumours. To the best of my knowledge, Maine Coons are not predisposed to developing cancer tumours. But Tesco argues that common feline growths include lipomas (benign fatty tumours), mast cell tumours (a cancer of the immune system) and lymphomas (a cancer of the lymph nodes).

Tesco Pet Insurance do say that this breed may be predisposed to developing inflammatory bowel disease (IBD). The small or large intestines becomes inflamed. My research indicates that it can be quite difficult to cure this disease in felines. I have a page on home remedies for this disease which you can read by clicking on this link.

I have a page on Maine Coon cat health problems - click here to read it. In a post I wrote in 2018 I said that Maine Coons are more expensive to insure than Bengal cats in the UK.

Tesco Bank Pet Insurance helpfully provide us with some suggestions for Maine coon cat names: Max, Luna, Bella, Milly, Lola.

Maine Coon cat. Photo: copyright Helmi Flick and published here with her express permission.

What's the best insurance policy in the USA for older cats?

The best insurance policy for older cats in the US is PetPlan. I have relied on investopedia.com to answer the question.

Photo: PoC.

They say that the best insurance policy in America for older cats is provided by a business called Petplan. In general, older cats are harder to ensure as the premiums might go up because of the obvious reason that older cats are more prone to chronic illnesses. However, PetPlan has no upper age limit. They accept any cat age from six weeks of age or older. They say they will never cancel your cat's policy because of their age. The insurance is available in Canada and the US.

Their insurance covers inherited diseases and chronic conditions. It does not cover pre-existing conditions or routine veterinary visits such as teeth cleaning or general wellness checks. This is normal. They say that the insurance covers up to 90% of all new injuries or illnesses. They also argue that their customers save between $50-$250 on each vet visit for injury or illness. Claims are paid within one to two weeks. They provide quotes and claims are easy to do using a PetPlan app interface.

Is pet insurance worth it?

Swedish Insure Their Pets While Americans Don't

This is a very short post just to mention that in Sweden 57% of pet owners ensure their pets while in England 15% do it but in America about 1% of cat owners and 2% of dog owners, or 3% in total, had health insurance for their pets. The source is the American Pet Products Manufacturers Association 2004.

What do you make of that?  Insurance is about risk.  People who are more cautious take out more insurance.  People who are prepared to take more risks don't take out insurance unless it is obligatory.  Some people figure out that paying for pet insurance works are more expensive than simply paying as you go when you visit a veterinarian.  Of course, it depends on your cat and how healthy he or she is and there is the risk element.

As Americans are a nation where there are more purebred pedigree cats than anywhere else and as pedigreed cats are possibly more likely to need to see a vet than random bred cats, you would have thought that Americans would ensure their cats more often but apparently not.

This has to be to do with risk and freedom of choice etc. and Americans like their freedoms and to make their own choices.  You probably have to conclude too that Americans don't like to support steady and regular outgoings without something coming back from it.  They also may dislike insurance companies!  I certainly do.

Insurance for Cat Health Problems

Photo by fofurasfelinas

Introduction

Insurance for Cat Health Problems is really about risk. I wouldn't automatically think that I have to get insurance for cat health problems immediately upon adopting, buying or acquired a cat. I have never bought insurance for my cat and so far this has worked to my advantage without in any way being detrimental to my cat. The various veterinary associations say that insurance is part of responsible "ownership". They would say that as pet insurance benefits veterinarians as well as the cat. But a person who doesn't take out insurance can be equally responsible provided he/she pays up when it is needed and doesn't shy away from that responsibility.

I've always considered pet insurance from a basic standpoint and for what it is, which is the funding of health care for cats that are more often ill by those people who keep cats that are healthier. In other words the people who keep healthy cats fund the people who keep unhealthy cats to put it a bit bluntly. And I am talking about specific insurance for cat health problems rather than household insurance that may cover some pet health risks.

Everybody pays their premiums (a yearly or monthly subscription for the type of insurance cover selected) but not everybody will benefit from the insurance to the same degree. Those people whose pets require more than average levels of treatment will benefit more from the insurance than those people who keep cats that are in need of treatment less often than average. Of course the cat is the number one recipient of the insurance.

So, it is about risk. When your cat is uninsured you are taking a risk that you will not be paying large veterinarian bills. If you do you would have been better off paying for insurance for cat health problems.

Insurance companies have to work out very careful what the average vet bills are and charge a premium accordingly. Another way I look at insurance for cat health problems is to think that the insurance company has taken a fictional single cat and worked out his/her yearly vet bill. They they then pay that bill and make a profit out of it. And insurance companies are very big business.

Insurance companies themselves take out insurance for unforeseen losses due to larger than normal claims. This form of insurance is called "re-insurance". Some very big companies provide this kind of insurance.


Photo by jim270 (On Vacation)

Types of Insurance for Cat Health Problems

There are basically three different types of pet insurance. Tesco, who provide pet insurance calls them level 1, level 2 and level 3. Other insurers may have different descriptions but they should be similar. As at July 2008 Tesco charges start at £4.50 per month for cats. This gives a clue as to the likely cost. Tesco are probably competitive being a big company. I am not promoting Tesco nor do I get a commission from them!

--Level 1 is "Annual pet insurance cover". Tesco say it is often called a "12 month policy". This is be because the policy will pay out for the treatment of a certain condition (illness) for a limited time, namely 12 months. There is also a ceiling on the amount paid within the year. So the funding is both time and amount limited for each condition covered by the policy. I will presume the policy covers a fairly wide range of illnesses. This form of insurance for cat health problems is unsuited to cats with ongoing long term demands for health care funding. This form of insurance is probably suited to most as it will cover day to day health problems that are usually resolved within the year.

--Level 2 "Per Condition Cover" and is funding that is the same (or similar) to level 1 except that there is no time limit on the funding of treatment for any one illness (the total amount is, however, limited). The premiums will be higher obviously for this kind of insurance.

--Level 3 is "Cover for Life" or "Life time cover". This covers vet's fees generally in any one year for the life of the cat but the amount paid out is capped and the excess (the amount to pay over the amount paid by the insurers, which could be quite a lot) is picked up by the person taking up the insurance. This type is best for ongoing illness.

Insurance does not usually cover routine treatments and preventative treatment such as vaccinations and neutering. It is not intended to cover all the "maintenance" costs of keeping a cat or pet. Premium rates will be "reset" each year. In other words the insurance company will charge more if you make more than the usual number claims. I guess this helps to spread the burden of funding (amongst all those insuring with the company) more fairly.

Insurance for Cat Health Problems - Extras

Extras such as insurance for holidays and missing pets can be bought or may be included. Holiday cover is for traveling cats under the The Pet Travel Scheme (PETS - this is a UK based scheme). PETS allows pets to travel to and from the UK without quarantine provided they follow certain rules. It is operated by Defra. Each country has its own pet entry requirements.

It may also be possible to take out insurance for "complimentary medicine". These are treatments such as physiotherapy and acupuncture.

The level of premium is worked out from information provided by you on the application form. Some cats will on the face of it be more at risk of needing health treatment and the premiums will be higher for them. My research indicates that the insurance companies do not make a distinction between purebred and mixed breed cats (nor rescue cats). It is generally thought that purebred cats are more likely to have genetically based conditions, some of which will be long term. This is due to inbreeding. This should be a factor when deciding insurance for cat health problems.


Photo by WitekKurowski

Insurance for Cat Health Problems - Some other benefits

Insurance brings peace of mind which is valuable. So there are benefits over and beyond simple finance. It will also eliminate that most impossible of decisions as to whether we should have our treasured cat put to sleep if she/he has a very serious illness that will cost the earth to treat.

Also as veterinarian treatments become more advanced and sophisticated the cost of treatment goes up but these new treatments are able to cure and manage illness that were once untreatable. These advances make insurance for cat health problems more attractive.

Insurance also benefits the veterinarian who is providing the treatment. The vet will be free to treat to the highest standards without funding issues to deal with. However this cuts two ways as it may also encourage a vet to charge more than would otherwise be the case. If this happened a lot the premiums would go up making insurance less attractive.

Another hidden benefit for the cat (and the cat keeper and vet) is that a cat insured is more likely to be brought to the vet earlier. This may mean a better resolution to the health problem. Depending on the insurance policy there may be some other nice little benefits such as boarding cattery costs if the person taking out the insurance has to go into hospital. Or if you have to cancel a holiday due to your cats illness; the cancellation costs may be covered.

Insurance for Cat Health Problems - Inherited illnesses

As mentioned some purebred cats and indeed mixed breed cats will have a propensity to suffer (perhaps rarely) from inherited illnesses due to a genetic defect (usually a recessive gene that has mutated and whose presence has become apparent due to the inbreeding necessary to achieve the appearance of purebred cats).

You can see a brief summary by clicking on this link (this is not necessarily a complete list) and then go to the relevant cat breed page of the website to read more about these health issues. Each page describing each cat breed has a section on health issues if there are any to discuss. The links to the individual breeds are in the NAVBAR on this website or in a series of pictures (the best) and listed alphabetically beginning here, or on the home page.

Insurance for Cat Health Problems - Conclusions:

These are the views of a cat lover who has become through no fault of his own a little cynical:

---If you have a purebred cat you can probably afford insurance for cat health problems and as a purebred cats may be a little less healthy than the average Moggie the balance tips in favor of insurance. I'd take insurance and probably the slightly more expensive variety.

---If you have personal health insurance for yourself and family members, in the spirit of equality for all animals, the insurance should extend to the cat(s) of the household.

---If you really like the peace of mind element of cat insurance and can afford it whether you have a purebred cat or not I'd take out insurance.

---If you don't mind taking risks and are genuinely prepared to pay a lot for a serious illness I wouldn't buy cat health insurance.


Insurance for Cat Health Problems to Cat Health Problems


Photos: All are published under a creative commons license that has been complied with and more. Thank you to the photographers (and these are classy photographers) for allowing their photographs to be published. I love your photographs. These cat photos are on this page to entertain. They have nothing to do with health insurance other than that they are cats. They are all mixed breed cats. All cats are equal.

Sources:

• Mainly myself
• Veterinary Notes for Cat Owners
• www.petinsuranceonline.co.uk
• Tesco
• www.ibc.ca