Axa pet insurance customers face price rise of up to £2,000

[Michael Browne]

Up to 10,000 Axa pet insurance customers are being moved to NCI Insurance as Axa leaves the market to concentrate on "key products" – motor, home and travel cover.

 

By August 30 2015, all customers will be shifted on to NCI's insurance books.

 

NCI told MoneySavingExpert that it would provide "similar levels of cover" to Axa, and will "continue to insure any medical conditions identified while customers were with Axa under the terms and conditions of the new policy."

 

But a number of customers who have already been moved to NCI say they are facing huge price hikes, particularly for cover for pre-existing medical conditions.

 

Many insurers will refuse to cover animals with pre-existing medical conditions, however, pet owners who want the most comprehensive type of pet insurance will need to opt for "lifetime" cover. Insurers will set a high maximum amount per year – say, £10,000 – but you will still have to renew the policy each year, and some insurers can refuse to renew it.

http://www.telegraph.co.uk/finance/personalfinance/insurance/pet/11598970/AXA-pet-insurance-customers-face-price-hike-of-up-to-2000.html

[citizenB]

http://www.consumeractiongroup.co.uk/forum/showthread.php?446474-Axa-pet-insurance-customers-face-price-rise-of-up-to-£2-000

 

This is also in Pets and Vets forum

[dacouc]

This is caused by Axa under estimating the costs of claims for a Life Time Pet Insurance Product and then exiting the market when they realise they cannot make any money from the market.

 

Their customers are then offered cover by NCI, however the problem being two fold, NCI will want to charge premiums to reflect the risk which will inevitably be higher than Axa's prices, But the other huge factor is the Pet owners whose pets have made no claims or very few claims will jump ship and insure with other companies. This leaves NCI with a pool of customers whose pets have existing medical conditions and have no option (Except for being uninsured) but to take NCI's offer. So NCI end up with a pool of pets who are far more likely to make a claim and with very few if any of the healthy pets whose premiums subsidise the pet owners who do claim.

 

The result is condsiderably higher premiums through NCI and quite possibly further increases next year if they have not done their sums properly.