Why has my premium increased?

Many of our household costs increase each year, and it’s a good idea to check what insurance we have and what’s covered, to make sure what we have still meet our needs. When it comes to your pet insurance premium, there are a few key reasons why your premium goes up each year. It’s good to understand these so that you can make informed decisions about your cover.

Let’s start by looking at how insurance works.

Pet insurance, like all insurance, operates by having many customers contribute to a shared pool of funds. That pool is then used to pay claims for vet treatment, so the risk of claims is spread among all customers. However, certain factors increase the risk that certain pets are more likely to need vet treatment, and this is reflected in the way that we set premiums.

Each insurer sets premiums in a slightly different way Here’s some of the factors that influence how we calculate premiums at Southern Cross Pet Insurance:

#1 Your pet’s age

As humans get older, they're more likely to suffer from age-related diseases and need treatment. And the same applies to our pets. So, as our cats and dogs age, they're more likely to need treatment for things like arthritis, diabetes, heart disease, kidney problems and cancer.

That's why your pet insurance premium increases as your pet gets older.

#2 Treatment costs

The New Zealand government subsidises much of our human health care. For example, Pharmac funds many common medications, public hospital treatment is free and even GP visits are usually subsidised. The same is not true for pet health care, which means that all pet health treatment needs to be paid by pet owners.

Also, the cost of pet medical treatment generally increases each year. This may be due to general veterinary clinic cost increases like staff wages, equipment purchases, technology improvements for vets or specific medication and treatment cost increases. Sometimes new and more effective treatments are more expensive.

All of these factors contribute to increases in the cost of the pet treatment costs we cover – which means we need to increase premiums to cover the increased cost of claims.

#3 Your pet’s breed

You may already know that some pet breeds are more likely to be diagnosed with certain health conditions. Golden Retrievers and German Shepherds are high on the list of dog breeds most prone to cancer, for example, and Cocker Spaniels are more likely to develop pancreatitis than many other breeds.

Some breeds are typically more expensive to treat due to their size or breed characteristics, and even size matters with larger breeds (like Rottweilers) often needing larger doses of medicines than a smaller pet.

We regularly review our historical and current claims data to analyse a breed's likelihood of developing certain health conditions, how regularly they are claimed for and how much they cost to treat. This analysis includes all pets of the same breed we insure – not just one individual pet.

#4 It’s a myth!

Let's bust the number one myth about premium increases while we're on the subject.

Claiming for the costs of your pet's treatment one year doesn't mean we'll increase your premium the next year purely as a result of that claim.

You have options to change your cover

At Southern Cross Pet Insurance, we’re 100% behind you and your pets. When the unexpected happens, we want to help.

The important thing to remember when you’re considering the cost of your pet insurance is that you have options. You can change your level of cover, your annual benefit limit, excess and co-payment to suit the needs of your pet and your budget. Our team of pet lovers are happy to discuss ways to make your plan work for you and help you decide the right level of cover for your pet.

You can get in touch with us by calling 0800 800 836, through our contact us form, or check out this article for more information about changing your cover.

References

https://www.vravet.com/site/blog/2022/03/31/which-dog-breeds-are-prone-to-developing-cancer
https://www.pethealthnetwork.com/dog-health/dog-diseases-conditions-a-z/acute-pancreatitis-dogs