Why Pet Insurance Is A Wise Choice
Tails wagging as South Africa’s middle class increasingly adopt pet insurance.
29/07/2024
For more than a few of us, pets hold a
special place in our hearts and our lives as
loved and cherished members of our family.
Through the companionship and unconditional joy
they bring us, our lives are only enriched by
their presence. And, every day, more and more
South Africans are coming to know the special
bond shared between pet and owner.
In
fact, a recent
study on the growth of South
Africa’s pet industry shows that 45% of all
adults in the country are pet owners, 81% of
whom own dogs. Additionally, 27% of pet owners
are cat lovers. But, as more South Africans
extend their families with the addition of pets
to their household, they also need to take their
care into consideration.
Just like with
any other member of the family, pets can get
sick or hurt or simply need to get regular
health check ups. However, getting the
appropriate care for them at a veterinary clinic
can be quite
costly. Vaccinations as well as
flea and tick control can cost around R500 per
round, annual check ups around R700, neutering
can cost between R750 and R4 000 depending on if
its a male or female cat or dog, while more
serious accidents such as a broken leg can cost
a minimum of R15 000 and hospitalisation between
R200 and R300 per day.
“Dealing with,
what can often be, the astronomical costs of
veterinary care could leave many families
struggling with a significant financial burden
as they try to ensure their beloved companions
receive the care they deserve,” says Mishaya
Chettiar, Executive Head at Everything.Insure.
“Luckily, people have more access to
comprehensive pet insurance than ever before.
More than just a financial safety net, pet
insurance is peace of mind in a policy, helping
to offset the stress of unexpected veterinary
bills while prioritising the health and
wellbeing of your furry family members.”
Reflecting the global pet insurance industry,
projected to be worth
R189.03 billion by 2026,
the local pet insurance market is also
surprisingly mature and very competitive with a
number of options for owners to choose from.
Although relatively new in relation to the
insurance industry as a whole, pet insurance has
actually been available in South Africa since
the 90s. Today, not only can South Africans
purchase pet insurance from existing insurance
companies that already sell multiple types of
insurance, but they can also purchase policies
from companies who solely cater to pets as well
as traditional financial institutions like banks
and even retailers.
Chettiar notes that
this is largely because a growing number of
South Africans are recognising the importance of
having pet insurance. As pet ownership grows, so
too does the country’s pet insurance market.
This also means, however, that choosing the
right policy can be difficult to navigate.
Usually, the biggest determinant for consumers
in making this decision, when it comes to any
type of insurance, has been to simply compare
prices and select the policy with the most
affordable cover. But, through the rise of
insurtech companies, consumers have access to a
greater level of transparency when it comes to
the intricacies of insurance policies than ever
before. Now, they can make side-by-side
comparisons of insurance plans that go beyond
just looking at premiums, gaining a better
understanding of exactly what is (and more
importantly, what isn’t) covered.
As
Chettiar notes, however, some basic knowledge
can go a long way. She says it’s similar to
knowing the difference between a full-scale
medical aid and a hospital plan.
“There
are similar differences for pet insurance,” she
says. “Accident cover, for example, is more
affordable than cover for a disease or chronic
pet illness. An insurance offering that looks
more like a hospital plan will cover the former
but not the latter, while a full medical aid
will cover both. So you have to look at what you
are getting.”
Another big thing she
believes that consumers need to be aware of is
the limits of specific policies. Some dominant
players in the sector, for example, have limits
as low as R10 000 to R15 000. So, if a pet has
an emergency costing more than that the owner
will have to put in their own money.
Beyond that, Chettiar encourages pet owners to
compare offerings specific to their animals and
breeds.
“With the diverse and varying
needs across both different species and breeds
of pets, pet owners require detailed comparisons
that extend beyond merely premiums as they need
to be able to make informed decisions that
ensure their pets are sufficiently protected,”
she says . “For example, breeds like pugs who
are notorious for their breathing and joint
issues necessitate coverage that addresses their
specific medical needs, but because these are
well-known issues for the breed there are some
insurers that might place a high premium on
these pets or exclude certain medical procedures
that will likely be needed in future in relation
to these issues.”
“By offering
comprehensive insights into coverage options
tailored to their pets’ specific needs, pet
owners can navigate the nuances of breed or
species-specific coverage without unnecessary
financial burden,” she adds. “Insurtech
companies like ours are simplifying the pet
insurance purchasing journey by providing
easy-to-understand policy information. But, more
importantly, as the first digital insurance
marketplace in the world, we’re enabling
consumers to compare different pet insurance
products, at their exact prices, ensuring they
have the right product at the right price.”
The reason you get medical aid for yourself
and your family is that you want peace of mind
that if anything happens, you will be able to be
cared for. With the right product, you should be
able to have the same peace of mind for your pet
at an accessible price.