Hundreds of thousands of pet owners have been left without coverage after Nationwide abruptly canceled pet insurance policies earlier this month.
The company suddenly announced it was dropping policies for around 100,000 pets – blaming the soaring cost of veterinary care and recent underwriting changes.
In a statement on June 14, it said the policies would be dropped when they expire, which is typically between now and next summer.
Nationwide said the non-renewals are not associated with the pets' age, breed or prior claims history.
But an affected pet owner has dogs aged 10 and eight who have recently had treatment – and now she is worried she won't be able to find a new insurer for Ros and Harper.
It comes amid widespread chaos across the insurance industry as a whole – as rising costs are pushing insurers to increase property and auto premiums and even flee some states entirely.
The company announced it was dropping policies for around 100,000 pets – blaming the soaring cost of veterinary care and recent underwriting changes
‘As pet lovers ourselves, we understand the emotions connected to the protection of our family pets,' Nationwide Insurance said in a statement.
‘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.'
The company says that it insures more than a million pets, making it the largest pet insurer in the country.
Alongside covering common domestic animals like cats and dogs, the insurer also offers policies for exotic pets such as amphibians and birds.
Across all its services, which include homeowner and vehicle coverage, the company recorded net operating income of $1.3 billion last year.
But despite the fact that Nationwide claimed prior claims history was not a factor, many of the affected premiums are older pets with pre-existing conditions.
Now their owners are worried about the possibility of finding affordable coverage elsewhere.
Freelance writer Keith, who lives in Michigan, was told the policies for her dogs would expire as the renewal dates hit, and she would not be able to get lesser policies for them.
The 65-year-old told USA Today that she was concerned about finding coverage elsewhere as her ageing pets have both needed treatment recently.
Ros, 10, a Silken Windhound, has been in hospital twice and has an ongoing undiagnosed illness, while Harper, eight, a Scottish Deerhound, was recently treated for a back injury.
‘No one else is going to take on old dogs with pre-existing conditions and even if they do they will exclude all of the pre-existing conditions. I don't know what I'm going to do,' she told the outlet.
According to personal finance site NerdWallet, around 24 percent of Americans who own a dog or a cat have pet insurance.
Depending on the policy, this may include routine medical care including teeth cleanings, as well as treatment for illnesses and accidents.
Many pet owners get insurance as they may be unable to cover the cost of a high emergency medical bill for their animal.
On average, insurance costs $53 a month for dogs and $32 for cats, but prices will go up as pets get older.
Some dog breeds, such as French bulldogs, are more susceptible to certain health conditions, which make them more expensive to insure.
And the cost of veterinarian services are rising. According to the Bureau of Labor Statistics, the category rose 7.1 percent in the year to April.
Contributing to this surging cost is a tight supply of vets and technicians, more sophisticated medicine and treatments and increased investor ownership of veterinary practices, The New York Times reported.
Across all its services, which include homeowner and vehicle coverage, Nationwide Insurance recorded net operating income of $1.3 billion last year
‘As pet lovers ourselves, we understand the emotions connected to the protection of our family pets,' Nationwide Insurance said in a statement
Many pet owners get insurance as they may be unable to cover the cost of a high emergency medical bill for their beloved animal
The most expensive pet claim paid in 2023, according to the pet health insurance association, was $51,133 for a golden retriever with lymphoma, the outlet reported.
Other top claims included $46,900 for a vomiting black and tan coonhound, and $43,389 to treat a French bulldog with a corneal ulcer.
These eye-watering costs are part of the reason pet owners are so concerned about being dropped by their insurer.
Many of the policyholders affected by Nationwide's announcement have joined a Facebook group called ‘Dropped By Nationwide Pet Insurance Whole Wellness,' USA Today reported.
The group, which has almost 400 members, is considering what legal action it may be able to take against Nationwide.
Robin Tobias, from Florida, told the outlet she received a letter saying the coverage for her dog, Ginger, will not be renewed as the ‘Whole Pet' plan will no longer be covered in her state.
‘The same economic pressures from inflation, higher interest rates and rising that have caused unprecedented losses for the American insurance industry are affecting the pet industry as well, leading to difficult decisions such as this,' a letter from Nationwide read.
‘Pet owners are contemplating euthanizing sick pets because they are uninsured, and all they can say is they need to make more money, so too bad,' Tobias said.
