Why pet insurance could help with rising veterinary costs
In recent years, there has been a significant increase in the demand for veterinary services, fueled by mass pet adoptions during the pandemic. As the president of Embrace Pet Insurance, I have witnessed this surge firsthand, with our company covering over 193,000 claims in the first quarter of 2023 alone.
One of the key factors driving this increased demand is the higher cost of pet treatments. The landscape of veterinary care has evolved with greater frequency and sophistication in testing and treatments. As a result, the costs associated with providing high-quality care to our pets have risen considerably. At Embrace, we have seen a steady increase in average claim amounts year over year, with a 13% rise in 2023 compared to the previous year.
According to the U.S. Bureau of Labor Statistics, the cost of veterinarian services has risen by 234.8% since 1997, growing at an average inflation rate of 4.76% each year. In 2022, veterinary pricing experienced the most substantial change in nearly three decades, with an inflation rate of 8.83%.
Embrace’s largest claim paid in 2022 amounted to $23,569. However, as we reach the midpoint of 2023, our largest claim has already surpassed that figure, standing at $31,922. These escalating costs highlight the need for pet owners to have a financial safety net in place to ensure their pets receive the best available care without compromising their own financial well-being.
Moreover, the competitive employment landscape within the veterinary industry poses additional challenges. Despite the demand for veterinary services, veterinary technicians and veterinarians are often underpaid, overwhelmed, and overworked. In the United States, the mean hourly wage for veterinary technicians is $19.60, according to the Bureau of Labor Statistics.
We believe pet insurance is the answer to these mounting concerns. By providing pet owners with a comprehensive insurance policy, we enable them to hedge their exposure to the numerous factors that contribute to the overall cost of veterinary care. Our goal is to empower pet owners to always choose the best available care for their animals without the fear of financial strain.
