Nationwide dropping 100,000 pet insurance policyholders due to inflation

[KARAH RUCKER]

WHETHER IT’S FOR THEIR HOMES OR CARS — AMERICAN FAMILIES HAVE HAD TO DEAL WITH HEADACHES WHEN IT COMES TO INSURANCE COMPANIES – FROM RISING PREMIUMS TO INSURERS PULLING OUT OF CERTAIN MARKETS ALTOGETHER – BUT NOW IT’S FIDO WHO IS FEELING THE PAIN.

NATIONWIDE — THE COUNTRY’S LARGEST PROVIDER FOR PET INSURANCE —  IS DROPPING COVERAGE FOR APPROXIMATELY 100 THOUSAND POLICYHOLDERS.

THE CANCELLATIONS HAVE ALREADY STARTED AND WILL CONTINUE THROUGH NEXT SUMMER.

NATIONWIDE BLAMING INFLATION FOR THESE STEPS — SAYING THIS ACTION WILL ENABLE THE COMPANY TO “MAINTAIN LONG-TERM VIABILITY AND PROFITABILITY.”

IN A STATEMENT, NATIONWIDE SAYS: “AS PET LOVERS OURSELVES, WE UNDERSTAND THE EMOTIONS CONNECTED TO THE PROTECTION OF OUR FAMILY PETS. 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 — DIFFICULT ACTIONS THAT ARE NECESSARY TO ENSURE A FINANCIALLY SUSTAINABLE FUTURE FOR OUR PET INSURANCE LINE OF BUSINESS.”

WHILE NATIONWIDE SAYS THE POLICIES BEING TOSSED ARE NOT ASSOCIATED WITH A PET’S AGE, BREED OR PRIOR CLAIMS – USA TODAY REPORTS MANY OF THE POLICIES ARE FOR OLDER PETS WITH PRIOR CONDITIONS – WHO MAY NOT BE ABLE TO BE INSURED ELSEWHERE.

ACCORDING TO A NERDWALLET SURVEY EARLIER THIS YEAR – ABOUT 24 PERCENT OF PET OWNERS HAVE PET INSURANCE – WHICH CAN COVER ROUTINE CARE AS WELL AS TREATMENT FOR ILLNESSES AND INJURIES.

THE AVERAGE COST FOR PET INSURANCE FOR DOGS IS 676 DOLLARS AND 383 DOLLARS FOR CATS.

OVER HALF OF THOSE SURVEYED SAY THEY PURCHASE PET INSURANCE FOR THE “PEACE OF MIND.”

BUT NOW FOR MANY PET OWNERS THAT PEACE IS BEING TAKEN AWAY.

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