Consumer Duty and customer experience: Pet insurance

As the pet insurance market continues to evolve dynamically, questions are being raised about whether pet insurers are doing enough to meet Consumer Duty obligations.

Consumer research undertaken by Consumer Intelligence in October 2023 highlights a significant gap between consumer understanding and the provisions of the pet insurance policies they purchase. The data pointed to confusion around standard policy features, with 14% of policyholders either unsure or believing that their policy did not cover standard features such as injuries or illnesses.

Meanwhile, over a third thought their policy covered them for pre-existing conditions, 42% believed they were covered for regular check-ups and 38% thought their policy included vaccinations and boosters; all of these being excluded from standard policy features. Many pet owners were also unclear about the type of pet insurance policy they held.

This lack of consumer understanding about standard pet insurance policy features, types of policy and the nature of the cover they are purchasing may give rise to regulatory scrutiny, as the FCA may have concerns about the resulting possibility of consumer harm and financial detriment.

This content highlights how Pet Check from CRIF can help pet insurers to meet their Consumer Duty obligations and offer fair value, whilst supporting pet insurance consumers to ensure they are buying the right cover for their needs.