Price deters takeup of pet insurance for older animals

Many employers want to make pet insurance available to their employees, but participation rates don’t tend to be very high, voluntary benefits consultants say.

Unlike many other voluntary benefits, pet insurance isn’t a guaranteed issue, said Tim Easterwood, Troy, Michigan-based area president and practice leader for voluntary benefits consulting with Arthur J. Gallagher & Co. In other words, if Fluffy has a pre-existing condition, it’s going to cost his or her owner.

The product is underwritten, which means the price “is based on the pet’s age and breed and so forth, and so it can be fairly expensive,” Mr. Easterwood said.

While it can be pricey to buy insurance for an older animal with health issues, it’s a much less expensive option for employees who are looking to insure puppies or kittens, he said.

According to Towers Watson & Co.’s 2013 Voluntary Benefits and Services Survey, pet insurance still lags some other voluntary benefits offered in the personal products space, with 30% of employers offering it to employees. Meanwhile, in the same category, 65% of employees offer discount merchandise, tickets and other perks, 50% offer auto insurance, and 49% offer home insurance, according to the survey.