Pet owners in the UK are now paying the highest pet insurance premiums in Europe, according to new research from CRIF. The report found that 39% of British policyholders say their costs are the highest they’ve ever been, more than double the European average of 15%.
The data also shows that 21% of UK consumers hold pet insurance policies, well above the European average of 15%. This reflects both the country’s strong pet culture and the growing exposure to rising insurance costs.
At the same time, claims are surging. The Association of British Insurers (ABI) reported a record £1.23 billion in pet insurance payouts in 2024, covering veterinary care for unwell and injured animals.
The findings form part of CRIF’s latest Banking on Banks report, which identifies the biggest changes to the financial services sector across Europe over the last decade, drawing on the views of both consumers and senior financial services professionals working in the UK and across European markets.
Read the full article on CRIF: UK pet insurance costs highest in Europe, with owners saying premiums have never been higher
NIS Perspective
The findings point to a market under pressure on both sides:
- Customers are facing affordability challenges as premiums rise.
- Insurers are balancing record claims costs with the need to deliver value and maintain profitability.
At NIS, we believe technology is central to solving this equation. Smarter use of automation, AI, and data analytics can help insurers:
- Control costs through integrated fraud detection and claims containment tools.
- Deliver faster claims decisions with intelligent triage and workflow automation.
- Offer personalised products through modular configuration and flexible benefit design.
- Strengthen customer trust with transparent communication and real-time policy management.
We also know the pet insurance market is uniquely complex. Customers expect cover to adapt to their animals’ lives, from lifetime policies to flexible multi-pet products. Distribution must span direct-to-consumer journeys, broker and affinity and partnerships, all while ensuring consistent pricing and compliance. And with claims volumes climbing, real-time claims processing and integration with veterinary networks are no longer optional, they are essential for delivering the service pet owner’s demand.
As Elliott Draga, our Chief Commercial Officer at NIS, explains:
“Pet insurers are at a crossroads, customers are demanding value at the same time as claims costs are hitting record levels. The only sustainable way forward is to leverage technology that reduces leakage, increases efficiency, and keeps the customer experience front and centre.”
