Hollard-owned PetSure says most of its brands have achieved double-digit growth in both policy numbers and gross written premium (GWP) in the past six months, countering analyst predictions that the market will slow as consumers look to save money.

Customer retention is several percentage points above 2019, the insurer says.

“There is no evidence that the current pandemic-driven economic downturn has impacted the growth of pet insurance portfolios and associated GWP in Australia,” PetSure CEO Alexandra Thomas told insuranceNEWS.com.au.

“The result has been significant overall portfolio growth for PetSure brand partners."

Petsure, which includes brands such as RSPCA, Woolworths, Medibank, BUPA, Pet Insurance Australia and Bow Wow Meow, also reveals it has provided about $3 million of direct support to almost 16,000 customers through flexible payment arrangements since the start of the COVID-19 crisis in late March.

PetSure believes seeking companionship from pets, particularly dogs, has significantly amplified with more people locked-down or working from home. Ms Thomas points to anecdotal evidence from multiple sources that dog and cat purchases have accelerated significantly since the onset of the pandemic, with demand exceeding supply for both rescue and breeder-sourced animals.

“This has also corresponded with an increase in the number of Australians wanting to insure their new furry companions, to protect themselves against potential bill-shock from future unexpected veterinary expenses,” Ms Thomas said.

Claims data shows an increase in pet injuries consistent with more activity as Australians exercise more regularly with their pets, particularly dogs, during lockdown. Pet owners are adapting to the pandemic to focus on the health of their cats and dogs, ensuring routine vet visits are up to date, chronic conditions are monitored, and elective procedures are taking place, the claims reveal.

The update counters forecasts from GlobalData for slower growth in the UK’s pet insurance market as consumers save money in the short-term. It lowered its forecast GWP in the UK pet market to £1.3 billion ($2.3 billion) by 2023, from £1.5 billion ($2.65 billion), saying the reduction was “solely due to COVID-19”.

Analyst Jazmin Chong said pet insurers “could be left with exacerbated claim numbers in the future”.

The pandemic offers pet insurers a “unique opportunity” in which consumers have more time to establish routines that can include preventative behaviours, such as implementing a feeding schedule, GlobalData says, yet the majority of pet insurers have not changed their products or advertisements due to COVID-19.

“Insurers that can differentiate themselves and introduce creative financial benefits for customers will be able to increase their customer base,” Ms Chong says.

PetSure says it has been on the front foot since the start of the pandemic, expanding its digital claims channels, including a new on-the-spot in-clinic claiming platform, where customers only have to pay the gap between the vet bill and what their insurance covers.

Another two enhancements are planned by December, and it has already rolled out 11 product innovations, including a Woolworths product with an annual limit doubled to $24,000, an RSPCA product without cruciate ligament and tick sub-limits and a Bow Wow Meow comprehensive policy covering hip replacements.

Emergency boarding cover has been extended to family violence situations, cover is provided for most parasitic conditions, and comprehensive policies now cover travel sickness, adverse reactions to preventive care treatments and medically necessary de-sexing procedures.

PetSure assesses more than half a million Australian claims each year.