Nationwide Pet Insurance Set to Drop About 100,000 Insured Animals


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Nationwide Pet Insurance will cancel coverage for about 100,000 animals across the country,  citing the escalating cost of veterinary care in axing the product in some states.

The canceling of thousands of coverage plans starts now and will continue through next summer as part of the company’s efforts to “maintain long-term viability and profitability,” Nationwide’s statement below is unclear how this will exactly work, and which states will do what.

“Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in some states — difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business,” according to the insurance carrier.

A part of the issue may be that veterinary costs have risen and veterinarians do what they want based on good medicine not insurance mandates. In the U.S., in human medicine, medical choices are (too often) controlled by insurance carriers.

Pet insurance has grown in popularity, with 24 percent of pet owners purchasing coverage, a NerdWallet study found in February. Other surveys suggest that pet parents with insurance in the U.S. are about half that. No matter, pet insurance continues to grow in popularity in the U.S.

Nationwide’s announcement comes as many struggle to get various forms of insurance, including for homeowner’s and car insurance, the latter has climbed 20.3 percent for the 12 months ending in May, according U.S. government data. Something to watch for, animal shelters may go out of business in 20024 and 2025 because of escalating insurance costs. The shelter industry has already begun to struggle with this issue.

While Nationwide issued the below statement; there is nothing noted on their website. In fact, they are apparently continuing to market for new business.

Nationwide’s pet insurance business is taking underwriting actions that will enable the company to maintain long-term viability and profitability. The company released the following statement today on these actions:

As pet lovers ourselves, we understand the emotions connected to the protection of our family pets. Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in some states — difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business.

These measures, being taken at a state level, comply with the law and our contracts, and are not associated with the pet’s age, breed or prior claims history. This will involve the non-renewal of approximately 100,000 policies between this spring and the summer of 2025. Impacted policyholders will be notified in writing well in advance according to state law.

We certainly empathize with the disappointment many of our pet families feel and will fully stand by the protections for which they have paid through the end of their current term. Our rates will continue to be fair and appropriately priced for the plan, pet, and breed.

We are proud that we consistently pay for covered claims each and every day, amounting to billions of dollars over the past four decades. We are making these tough decisions now so that we can continue to be here for even more pets in the future.

The future is bright for Nationwide Pet. We remain focused on expanding our reach to protect more pet families while partnering to make pet care more affordable and accessible. We’ll continue to build our pet business by expanding our distribution network, establishing new partnerships and deepening the ones we have with Walmart, Petco, and our recently announced partnership with Unum.

More broadly, Nationwide remains strong and stable as one of the largest providers of financial services and insurance products in the U.S.