Nationwide to Drop Pet Insurance Policies, Leaving Owners Scrambling
Hundreds of thousands of pet owners are facing a crisis as Nationwide, one of the largest pet insurance providers in the U.S., has begun canceling policies. The company has announced it’s dropping coverage for approximately 100,000 pets, blaming the increasing costs of veterinary care.
In a statement released on June 14th, Nationwide indicated that the policy cancellations will take effect as policies expire, which is expected to occur between now and the summer of next year. The company has stressed that the non-renewals are not based on a pet’s age, breed, or previous claims.
This decision has caused significant concern among pet owners. One affected owner has dogs aged 10 and 8 who have recently received medical treatment. She is now worried about finding a new insurer for her pets, Ros and Harper.
The wave of cancellations comes amidst broader turmoil in the insurance industry. Rising costs are forcing insurers to increase premiums for home and auto coverage, and some are even withdrawing from certain states.
“As pet lovers ourselves, we understand the emotions connected to the protection of our family pets,” Nationwide Insurance said in a statement.
Nationwide stated that financial pressures, including the rising cost of veterinary care, influenced recent underwriting changes, leading to the withdrawal of some products. The company, which insures over a million pets, claims to be the largest pet insurer in the country. They offer policies for common pets like dogs and cats, as well as exotic animals such as amphibians and birds. Despite this, the company reported a net operating income of $1.3 billion last year.
Despite Nationwide’s claim that prior claims history isn’t a factor, many of the affected pets are older and have existing health conditions. Owners are now concerned about finding affordable coverage elsewhere.
Freelance writer Christie Keith, a Michigan resident, learned that her dogs’ policies would expire without renewal options. Keith, 65, expressed her worries to USA Today about finding alternative coverage for her aging pets, both of whom have recently required treatment. Ros, a 10-year-old Silken Windhound, has been hospitalized twice, while Harper, an 8-year-old Scottish Deerhound, received treatment for a back injury. “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,” she said.
According to NerdWallet, around 24% of American dog and cat owners have pet insurance. These policies can cover routine medical care, including teeth cleaning, as well as illness and accident treatments. Many pet owners purchase insurance to protect themselves from large emergency medical bills.
On average, insurance costs approximately $53 per month for dogs and $32 for cats, though prices increase as pets age. Certain dog breeds, like French bulldogs, are prone to specific health problems, making them more expensive to insure. Furthermore, the cost of veterinary services is increasing. The Bureau of Labor Statistics reported a 7.1% rise in this category in the year leading up to April. The New York Times has attributed this rise to a shortage of vets and technicians, advances in medicine and treatments, and increased investor ownership of veterinary practices.
The Pet Health Insurance Association reported that the most expensive pet claim paid in 2023 was $51,133 for a golden retriever with lymphoma. Other top claims included $46,900 for a vomiting black and tan coonhound and $43,389 to treat a French bulldog with a corneal ulcer. These high costs play a significant role in pet owners’ concerns about losing coverage.
Many policyholders affected by Nationwide’s announcement have joined a Facebook group called “Dropped By Nationwide Pet Insurance Whole Wellness,” as reported by USA Today. The group, with nearly 400 members, is considering potential legal action against Nationwide. Robin Tobias, from Florida, received a letter stating that coverage for her dog, Ginger, would not be renewed because the “Whole Pet” plan would no longer be available in her state.
“The same economic pressures from inflation, higher interest rates and rising that have caused unprecedented losses for the American insurance industry are affecting the pet industry as well, leading to difficult decisions such as this,” the letter from Nationwide stated. Tobias shared the sentiment of other pet owners, saying, “Pet owners are contemplating euthanizing sick pets because they are uninsured, and all they can say is they need to make more money, so too bad.”
