According to Pearson Ham’s Pet Insurance Pricing Index for Q3, premiums were up by 0.9% on the previous quarter, although they are down by 3.5% on an annualised based. Pearson Ham said this was largely due to the 4.5% drop recorded last November.

The report showed that cover limits had a significant impact on premium moves and that premiums for products providing cover of £3,000 and more had fallen by 11% on an annualised basis.

Looking at premiums on a regional basis, the data found that over the past year, reductions have been most pronounced in England, while moves in Scotland, Wales and Northern Ireland had been more moderate.

Frances Luery, product manager at Pearson Ham Group, said: “This quarter’s data indicates a stabilising market. The modest rise in Q3 follows a period of downward price adjustment, particularly after the sharp correction last November. While lifetime products remain highly competitive, the continued volatility in time-limited and maximum-benefit cover reflects the influence of product availability and brand participation.

“We are also seeing more alignment in pricing between age groups and across regions, suggesting insurers are refining and recalibrating their pricing models.