Nationwide, the nation's largest pet insurer, is dropping coverage for about 100,000 pets across the country, blaming the rising costs of veterinary care and other factors that it says are threatening long-term viability and profitability of its pet insurance business.
"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 plan availability in some states — difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business," the company said in a statement Wednesday.
Affected policyholders are being informed in writing about Nationwide's plans. The company, which insures 1.2 million pets, began sending letters to policy holders this spring and will continue into the summer of 2025.
Nationwide's move comes amid a spiraling crisis in insurance costs.
The cost of auto insurance alone has jumped 22.6% in the past year, running well past the cost of any other category of inflation tracked by the government, including food, energy, clothes, new and used cars, medical services and rent, according to federal inflation data.
The cost of insuring a home has risen so much that some homeowners are doing without coverage.
The release of Nationwide's statement comes as policyholders have turned to social media to complain about the letters they've received, especially those with pets with health problems that require several hundred dollars a month for care and medicine to treat.
"Pet owners are contemplating euthanizing sick pets because they are uninsured, and all they can say is they need to make more money, so too bad," said Robin Tobias of Aventura, Florida, who received a letter from Nationwide in April telling her that coverage for her dog, Ginger, won't be renewed.
Nationwide said it is taking these actions now to make sure it can continue to cover pets into the future, and that its actions comply with the law and its contracts with policyholders. Nationwide said Ohio policyholders are among those affected, but it did not release any numbers.
Other companies are seeking to take advantage of the situation. MetLife, for example, is reaching out and says it may be able to help owners of pets with preexisting conditions.
"We certainly empathize with the disappointment many of our pet families feel and will fully stand by the protections for which they have paid. Given the current environment, our rates will continue to be fair and appropriately priced for the plan, pet, and breed," Nationwide said in the statement.
Tobias shared the letter with The Dispatch she received from Nationwide.
"After careful review of our products, we've elected to discontinue certain plans, including Whole Pet, which will no longer be offered in your state," the letter said. "The same economic pressures from inflation, higher interest rates and rising that have caused unprecedented losses for the American insurance industry are affecting the pet industry as well, leading to difficult decisions such as this."
Ginger's coverage ends July 23. Tobias pays about $160 a month for insurance to cover the 7-year-old dog with a heart murmur. She bought the coverage when her dog was a puppy.
"There's a lot of people panicking," Tobias said.
Tobias is particularly concerned about older pets with health problems that may be abandoned by their owners because they can't afford to pay to care for their pets and can't get coverage from another insurer.
"That's the reason why you take insurance," she said. "Down the road, you're doing to need it. It's horrifying really."
"For us, dogs have been our children. Everything we do is to protect our children."
She has found another company that she believes will cover Ginger, but she worries that others won't be as fortunate.
Christi Keith of Davisburg, Michigan, has three dogs covered by Nationwide that will be losing protection.
"I thought I had a safety net for my dogs. I thought I was doing the responsible thing," she said.
While she believes the youngest can get other coverage, her two other dogs have health issues, she said.
"My two old dogs are just screwed," she said, which will make getting other coverage tough.
She said she bought coverage off a promise from Nationwide.
"The whole point of insurance is not to be put in that position," she said.
mawilliams@dispatch.com
@BizMarkWilliams
