Southern Cross Pet Insurance Reaches 65,000 Customers as Pet Ownership and Vet Costs Rise
Southern Cross Pet Insurance (SCPI) has announced it now serves over 65,000 customers, a significant milestone reached 13 years after the company entered the pet insurance market. SCPI is the pet insurance division of Southern Cross Group, a well-established provider of health, life, travel, and pet insurance in New Zealand. Southern Cross holds approximately 60% of the health insurance market.
According to Anthony McPhail, Southern Cross’s Chief Strategy and Customer Officer, pet insurance has been on the company’s radar for two decades. Surveys of Southern Cross members consistently indicated strong interest in pet insurance, making it a “natural fit” for the brand.
Southern Cross acquired Ellenco Pet Insurance in 2012, rebranding it to Southern Cross Pet Insurance in 2014. Since then, SCPI’s customer base has grown substantially. A 25% surge in growth starting in 2021, which McPhail attributes to the COVID-19 pandemic, significantly contributed to this expansion.
“Lots of people decided to get pets in that period, because of the psychology of, you know, not traveling overseas, being at home, working from home more,” McPhail explained.
McPhail noted that these trends increased pet ownership, which led to significant growth for SCPI. Rising veterinary costs have also played a role in the increase in pet insurance uptake.
SCPI began tracking pet insurance rates in May 2022, when only 22% of New Zealand pet owners had insurance. This figure has since risen to 33% as of January 2025.
SCPI currently offers insurance for cats and dogs only, with 67% of its insured pets being dogs and 33% cats. This translates to approximately 43,918 insured dogs and 21,516 insured cats. Popular insured dog breeds include Labradors, Cavoodles, Mini Schnauzers, Golden Retrievers, and Labradoodles. Domestic shorthairs are the most commonly insured cat breed.
McPhail indicated that expanding insurance coverage to other companion animals is a “possible” future consideration. However, the current focus remains on the growing dog insurance market.
The average SCPI claim is $564. McPhail highlighted that vet costs are substantial and not subsidized similarly to human healthcare in New Zealand.
“We’ve definitely seen more discussion in the last 18 months about options to reduce premiums or, you know, obviously some customers choosing to not insure anymore,” McPhail said.
SCPI paid out $30 million in claims in 2024, slightly up from $28 million in 2023. Reasons for policy cancellations in 2024 included overseas moves, pet deaths, and affordability concerns. McPhail noted that economic pressures have prompted some customers to re-evaluate their coverage.
SCPI’s insurance premiums have generally increased in line with inflation over the past five years, with some customers experiencing rises of 10% or more. McPhail expressed the hope that claim costs will stabilize, which will, in turn, impact premium adjustments.
SCPI has observed “some softening” in the claims space which McPhail said was a good sign. “We appreciate there’s a reality to things going up in price. You know, as we’ve all experienced, it can’t be forever.”
