Continued pet provider churn

Defaqto's latest Insight report into the Pet Insurance market has highlighted a continued trend of provider churn.

The report, entitled: "Pet Insurance in the UK: Pet insurance is for life, not just when you can afford it" outlines the possible problems that provider withdrawals from the market could cause for consumers.

Mike Powell, Principal Consultant - General Insurance at Defaqto, said: "For other personal lines products, such as home, motor and travel, provider churn is not a significant problem. There will always be new or existing insurers who are able to soak up the customers of any insurer which decides to withdraw from the market. But for pet insurance customers, provider churn is a problem."

Powell added: "Pet insurance is primarily a medical insurance cover, and pre-existing conditions can cause problems for customers as they try to obtain alternative insurance. If the customer is forced to find an alternative insurer because their current on withdraws from the market, they may find existing conditions are excluded from the new policy."