(NationRise.com) – Insurance giant Nationwide announced that its scrapping coverage for over 100,000 pet insurance policies as costs continue to soar.
The company said on June 14 that it will begin cutting plans now and continue to do so through next summer. It also said it’s part of its ongoing plans to “maintain long-term viability and profitability.” The announcement tried to instill empathy by describing Nationwide’s leaders as pet lovers. However, it also directly said that inflation is negatively impacting its ability to provide adequate coverage.
While Nationwide has assured that the cancellations will not be based on a pet’s age, breed, or health history, it has not provided specific details about the criteria that will be used. The company has stated that the process will be conducted at the state level in accordance with local laws. However, the lack of transparency about the selection process leaves many pet owners uncertain about the fate of their policies.
Pet insurance has gained significant popularity in recent years. It has become a multi-billion dollar business with some of the biggest players looking for a cut of the market. Millennials are currently the most likely to purchase pet insurance as they own more pets than other generations. They have helped pet owners save thousands on treatment and largely shielded them from the rising cost of pet care.
One pet owner said she was at a loss over the cancellations. She has been paying $700 per month on premiums, saying that her pets are like family. She fears that she’ll no longer be able to afford their care. She’s also afraid that no other insurance company will offer coverage for her older dogs.
The announcement comes as both car and health insurance rates continue to soar amid record inflation. Americans are now averaging a record $200 per month in car insurance premiums. Health insurance rates also rose by a staggering 7% last year, a rate that hit small businesses particularly hard. Experts believe premium prices will only continue to increase in the near future.
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