Why Veterinarians Should Promote Pet Health Insurance
by Jenny Alonge
According to a recent North American Pet Health Insurance Association (NAPHIA) report, the pet health insurance industry has recorded its sixth year of double-digit growth. A total $2.174 billion premiums were sold in 2020, up 26% from 2019. While insured pets are on the rise in the United States, the approximately two million dogs and 419,000 cats who were insured in 2019 represent only about 1.7% of owned pets. Veterinarians should more proactively promote pet health insurance, which can help improve patient care and increase veterinary practice revenue.
Pet health insurance benefits
Pet health insurance provides benefits for pets, clients, and veterinarians that include:
- Prompt pet care — A pet owner who insures their pet doesn't have to worry if they can afford their pet’s care, and is more likely to bring in their pet for veterinary care when they first notice a problem rather than monitor the condition.
- Gold standard pet care — Insured clients are typically more willing to approve recommended diagnostics and treatments, allowing the veterinarian to provide the best possible care for the pet without worrying that the client will balk at the cost.
- Decreased economic euthanasia — Many pet owners can’t afford the cost of an emergency veterinary bill out of pocket, and may be forced to opt for euthanasia. Having pet health insurance prevents these situations, and the owner can make decisions based on their pet’s needs instead of their pocket book.
- Increased veterinary spending — NAPHIA has demonstrated a significant increase in veterinary spending when clients have insurance for their pets. Dog owners with insurance spend about 29% more, and cat owners about 81% more.
- More satisfied clients — A 2020 study by Crum and Forster Pet Insurance Group showed that clients were more satisfied with their veterinary care experience when their pet was insured.
Promoting pet health insurance
Pet owners look to their veterinarian for advice, and NAPHIA’s research has demonstrated that 50% more pet owners would purchase pet health insurance on their veterinarian’s recommendation. Strategies to help you educate your clients and promote pet health insurance include:
- Research pet health insurance companies — Research several pet health insurance companies, and choose two or three that will work best with your practice. Identify these companies to your clients as preferred providers.
- Provide educational materials — Provide pet health insurance brochures in your waiting room, exam rooms, and in new client kits to help spark interest during veterinary visits.
- Provide pet insurance links — Add links to your preferred providers on your website, so your clients can easily get a free, no-obligation quote.
- Ensure your entire team is engaged — Educate your entire veterinary team, and ensure they ask clients if their pet is insured, and can answer questions about pet health insurance.
- Add pet insurance information to patient records — Include the company and policy number in the pet’s file to make claim submissions easier.
- Submit claims on your client’s behalf — Provide detailed documentation directly to providers to make the claims process more efficient.
- Make pet insurance a staff benefit — NAPHIA research has demonstrated that 71% of pet owners were more likely to purchase pet health insurance if their veterinary practice insured staff pets.
Answering pet owner FAQs
Pet health insurance can be confusing for pet owners, who may come to you for help. Frequently asked questions that you should be able to answer include:
- Is pet insurance worth the cost? — Pet insurance is a great investment for a pet owner who has a puppy or kitten. Young pets are the least expensive to insure, and one emergency veterinary visit can make a policy worthwhile. Older pets are more expensive, and pre-existing conditions aren’t usually covered. Many insurers don’t offer coverage to pets over a certain age.
- What does pet insurance cover? — Pet insurance reimburses pet owners for covered illnesses and injuries. Services such as vaccines, dental cleanings, and annual blood work are not covered without purchasing an additional wellness package. Most companies exclude hereditary conditions and diseases genetically linked to certain breeds, so purebred pet owners must research this information when choosing a policy.
- How much does pet insurance cost? — Annual premiums are calculated based on factors that include the pet’s age, breed, and spay or neuter status, and the pet owner’s location. Most providers allow clients to choose a deductible tier, and the higher the deductible, the lower the annual premium. Deductibles can be annual, per condition, or per visit. Annual is the best option, because once the client reaches the deductible limit, all future costs are covered for the year.
- How much will I be reimbursed? — Most providers offer different payout tiers, and the higher the payout percentage, the higher the annual premium. Most companies cap payouts and allow the client to choose the cap, and the higher the total annual payout, the higher the annual premium.
Regulatory standards on pet health insurance
On August 1, 2022, the pet insurance working group of the National Association of Insurance Commissioners (NAIC) adopted a pet insurance model law to standardize the product across state lines. The NAIC’s law is largely based on California’s pet insurance law adopted in 2014 and establishes consumer protections by requiring pet insurers to disclose information in clear language about reimbursement benefits, pre-existing condition limitations, and coverage limitations involving coinsurance, waiting periods, deductibles, and annual or lifetime policy limits. In addition, the law ensures consumers have a “free look” period during which they can return their pet insurance policy for a full refund.
Advances in veterinary medicine increase veterinary care costs every year, and pet insurance is a great way to mitigate these expenditures for pet owners. Veterinarians should promote pet health insurance, which benefits clients, patients, and veterinary practices.
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