Nationwide cancels 100,000 pet insurance plans, citing rising costs

Miranda Nazzaro and The Hill

8 minutes ago

(The Hill) — Nationwide Insurance says it plans to cancel pet insurance coverage for about 100,000 pets across the country, citing rising veterinary costs.

The cancellation of thousands of coverage plans will take place by next summer as part of the company’s efforts to “maintain long-term viability and profitability,” Nationwide said in a statement Friday.

“As pet lovers, we understand the emotions that come with protecting our pets. Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of certain products in some states – difficult steps that are necessary to ensure a financially sustainable future for our healthcare industry. “pet insurance,” he adds.

Nationwide said cancellations will not be based on an animal’s age, breed or previous complaints, and affected individuals will be notified in writing in advance.

Policyholders will still benefit from the same protections during their current term, the company said.

The popularity of pet insurance has increased over the years, with 24% of pet owners having a coverage plan, according to a NerdWallet study earlier this year.

Pet insurance plans generally cover expected health problems or injuries, while some also cover ongoing treatment for certain conditions.

“I don’t know what I’m going to do,” Nationwide customer Christie Keith, who was paying more than $700 a month in premiums, told USA Today.

“I was willing to pay a lot of money for this coverage because I love my dogs. It is my family. They are not like a car, or even a house, or something that can be replaced or rebuilt, they are important to me,” Keith said. “No one else will accept old dogs with pre-existing conditions and even if they did, they would exclude all pre-existing conditions.”

Inflation remains a top concern for voters, according to a recent poll, and the Biden administration has faced continued criticism over its handling of the economy.

The consumer price index, a closely watched inflation gauge, was unchanged over the past month and is up 3.3 percent annually, according to Labor Department data. That figure, beating consensus estimates, would rise 0.1 percent in May and 3.4 percent over the past year.