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Pet insurance climbs in line with vet bills

As Australians look to save wherever they can, pet owners are reacting to high medical bills by buying insurance for their household animals.

Australian Veterinary Association President Mark Lawrie told insuranceNEWS.com.au pet insurance has grown significantly since a 2006 report on the contribution of the pet care industry to the Australian economy.

“Veterinary costs have risen [due to] the technology, drugs and techniques that we have now,” Dr Lawrie said. “Pet insurance removes the question pet owners have between balancing the cost of treatment against euthanising their animal.”

Petplan Australia Director Doug Ford told insuranceNEWS.com.au that as advances in treatments push up the cost of veterinary bills, animal lovers are looking to insurers to meet the costs.

“There are 8.6 million households in Australian and 52% of them own a dog or a cat,” he said.
 
“During this period of financial unrest I expected to find a lowering of the number of applications for cover. We’ve actually had record numbers of applications.”

But he says the rise is on a low base, with only 2% of Australian pet owners taking out insurance, compared with 20% in the UK and 48% in Sweden.

Mr Ford believes at the present rate of growth the Australia figure could be up to 8% within five years.