Nationwide, the 90-year-old insurance and financial services firm in the United States will drop coverage for over 100,000 pets. The company blames the rising expense of veterinary treatment in some areas.
Nationwide to Cancel 100,000 Pet Insurance Policies
In a statement released on Friday, June 14, Nationwide said it would cancel thousands of coverage plans beginning this summer and continuing through next summer to ensure its long-term profitability and viability.
CBS News reported that the firm had to make tough decisions, such as removing some products in certain states and recently underwriting modifications brought about by the rising cost of veterinary treatment, among other considerations.
It has promised that owners of affected pets would be given advance written notice and that the cancellations will not be based on the pets' age, breed, or history of claims.
According to a February research by NerdWallet, the number of pet owners with coverage has increased to 24%.
Pet insurance may cover various circumstances, including accidents, diseases, and general health. Using the most popular insurance type, NerdWallet calculated an average annual cost of $676 for dogs and $383 for cats.
Nationwide's statement comes at a time when many Americans are having trouble obtaining insurance, even for their houses and cars.
Rising Insurance Expenses Keep Putting Pressure on Americans
This year's insurance costs have added to American families' financial strain.
According to ABC7, the latest Consumer Price Index data shows vehicle insurance jumped 20.3% in the year ended May. Rising automobile repair expenses and more severe and frequent accidents contribute to that trend.
The house insurance industry is also failing. Hurricanes, storms, and wildfires are becoming more frequent and severe due to climate change. Insurers, particularly in harsh weather locations, are hiking prices or leaving the market, affecting house and fire insurance costs and availability.
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