As inflation takes its toll on industries across the board, a major insurance company has dropped 100,000 pet insurance policies for the sake of financial stability.
Canceled Coverage for 100,000 Pets
Columbus-based insurance company Nationwide has announced its intention to cancel coverage for approximately 100,000 pets across the country.
A Necessary Response?
The company released a statement last Friday, informing customers that the cancelations would be effective once the policies expired. They described it as a necessary response to increasing inflation and a need to secure a “financially stable future” for their policies.
Protecting Family Pets
“As pet lovers ourselves, we understand the emotions connected to the protection of our family pets,” the press release began, shared on Nationwide’s official website.
Soaring Veterinary Costs
“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,” it continued. “Difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business.”
No Bias Involved
The statement reassured Nationwide customers there was no bias involved in the decision-making, and that no policies had been canceled on the grounds of a pet’s age, breed, or past insurance claims.
Notifications Incoming
Between Spring 2024 and Summer 2025, these 100,000 policies would be non-renewable. Affected customers will be notified in advance in compliance with state laws.
One of the Largest in the Country
Nationwide is currently one of the largest finance and insurance services in the country. In 2023 it made $60.3B, largely through selling insurance products, according to its official website. In the last 3 years, it has confirmed annual record sales.
Customer Trust Could Be on the Line
However, it may be in danger of losing customer trust and loyalty as it leaves thousands of customers in the lurch, needing to purchase new policies with different companies to cover their pets.
Aged Pets Most Affected
It is especially difficult when many of the non-renewable policies are for aged pets with an accelerated need for care and potential pre-existing conditions. Now that their policies have been voided, many will struggle to find insurance elsewhere.
Exotic Pets Too
Nationwide customers who have more exotic pets may also face trouble. The company is known for providing coverage for rare and exotic pets that are unlikely to qualify for insurance with many other companies.
“Long-Term Viability and Profitability”
While the company stressed that it needed to take these actions to “maintain long-term viability and profitability,” many pet-owning customers have voiced their unhappiness with the decision.
Pet Owners Come Together
In fact, one group is considering pursuing legal action against the company. The group is called “Dropped By Nationwide Pet Insurance Whole Wellness” and has come together to discuss potential retaliation against Nationwide.
Contemplating Euthanasia
“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,” group member and Nationwide customer Robin Tobias told USA Today.
High Premiums
It is especially galling for long-term customers affected by the announcement, as Nationwide has some of the highest premiums for pet insurance in the country, according to research by US News and World Report.
Insurance Costs Increasing
However, insurance costs aren’t just a concern for pet owners. As inflation continues to batter the economy and the occurrence of extreme weather events increases, the cost of health, home, and car insurance is creeping up across the country.
26% Increases in One Year
Car coverage in the US increased by 26% on average in the last year, according to Jerry, a site that compares and contrasts insurance companies.
Home Insurance Jumps Up
Home insurance prices, on the other hand, have increased by 19% in the last year, according to a study by Guaranteed Rate Insurance. Prices are jumping so high that many are choosing to eschew insurance entirely.
Some May Forego Pet Insurance
As the cost of pet insurance and veterinary services continues to rise alongside inflation, many pet owners will likely be forced to drop pet insurance, too.
Extending Sympathies
So far, Nationwide has not acknowledged the possibility of legal action regarding their recent announcement, but they did extend their sympathy to affected pet owners in their original statement.
A Final Note for Customers
“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,” the company said.
Featured Image Credit: Shutterstock / simona pilolla 2.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
