LINCOLN — Insurance companies will have a clearer framework for creating pet insurance in the state through a proposal in the Nebraska legislature.
Senator Beau Ballard of Lincoln was introduced Bill 296, Pet Insurance Act. This establishes a legal framework for policy and consumer protection for a growing industry.
North American Pet Health Insurance Association report In 2022, the industry will be worth over $2.83 billion at the end of 2021, growing more than 30% year-on-year.
The bill’s consumer protections address whether certain services are excluded from coverage, whether there is a waiting period, what the insurance benefit schedule is, how the pet’s pre-existing condition affects insurance, Reflects the consumer protections of health insurance policies, including required disclosures about setting up training. insurance company requirements.
Consumers of pet insurance are likely to use the policy more frequently than other insurance types, but the costs are usually lower. According to Ballard, the average policyholder makes 1.5 pet insurance claims per year.
rising medical costs
Ballard adopted Cosmo, a cocker spaniel, last March and takes him for a walk every morning, “one of the highlights of the day.”
He told the committee that if Cosmo needed critical care, Ballard would have to decide whether to pay a large amount for that care.
“Like anything else in life, veterinary costs are skyrocketing,” Ballard said. “And this[a kind of insurance]provides a little reassurance that consumers can have some insurance and pay for those unexpected events.”
Support from industry experts
Michelle Muirhead, assistant vice president of Omaha’s Physicians Mutual Insurance Company and testifying for the Pet Insurance Association, said her company began offering pet insurance in August 2022.
Muirhead said it was the result of about three years of working with the National Association of Insurance Supervisors, the Nebraska Department of Insurance, veterinarians and others on how to design insurance.
She said the bill would allow pet owners to pay for veterinarian-recommended treatments, rather than the amount they could pay on a particular day.
The average monthly premium is $50 for dogs and $32 for cats, and primarily covers accidents and illnesses (cancer, infections, broken bones, digestive problems, ear infections, allergies, etc.).
“Ultimately, the industry wants consumers to be happy with their pet insurance purchases and the coverage we offer,” said Muirhead.
Robert Bell also testified in support of the Nebraska Insurance Federation and the American Property and Casualty Insurers Association about how pet insurance functions like health and life insurance, even though pets are technically property. I explained how to
According to Bell, this requires a different level of consumer protection.
“I’m happy to make a law to bring him in.” [Cosmo] This is always a great, great opportunity,” Ballard said.
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