The limited number of underwriters in the pet insurance market has concerned consumer organisation Choice in its latest report on the sector.

Choice spokesman Ingrid Just told insuranceNEWS.com.au the lack of underwriters has limited the amount of product differentiation.

“We found there was not a lot of product differential and similar restrictions, so for consumers there is not a lot of choice in pet insurance,” she said.

“The main difference between pet insurance products is the co-payments – the amount the insurer and the insured pay on a claim.”

The two underwriters in pet insurance are Allianz with the Petplan and PetCover brands, and Hollard, which manages brands such as PetSure and Woolworths.

Choice’s report recommends a number of products for both cats and dogs including Petplan, PetSecure, Bow Wow Meow and Woolworths Standard.

Other issues Choice has with pet insurance include low portability of cover. Once a cat or dog reaches eight or nine years of age, the insurers will not provide new cover.

“Apart from the need for insurers to keep premiums affordable, there is little to encourage competition in the industry,” Ms Just said.

“Private health insurers take on pre-existing conditions but use waiting periods and loadings, while pet insurers have so far managed to avoid making it easier to switch.”

The Choice report says premiums for cats average about $200 a year for accident policies and about $410 for accident and illness.

Similar coverage for dogs costs about $390 for accident cover and $550 for combined policies.