Intense competition continues to impact the pet insurance market which has seen premiums for lifetime pet cover fall by 14% over the past 12 months. The figures from Defaqto’s latest pet insurance pricing index record an average of the top five quoted prices.

In Q3, premiums tumbled by 6.1% and are now 12% lower than they were at the beginning of the year. Falls in maximum benefit and time-limited policies were less pronounced at around 4% and 1% respectively.

Frances Luery, product manager at Defaqto, said: “A 14% annual reduction in average top five lifetime prices demonstrates the strength of competition in the pet insurance market. Prices continued to fall throughout the third quarter, reversing June’s increase and taking them further below last year’s levels.

“The CMA’s veterinary reforms could take influence in 2027. Clearer prices and written estimates should help owners make more informed decisions, but their effect on veterinary fee inflation will take time to emerge. Insurers will be watching how practices and customers respond over the coming year.”