2016 Star Ratings Pet Insurance Discussion paper

Transcription

1 2016 Star Ratings Pet Insurance Discussion paper Defaqto Limited All rights reserved. No parts this publication may be reproduced in any form by any means, whether electronic, mechanical, optical or any other, or be stored in a retrieval system without the express written permission the publisher. The publisher has taken all reasonable measures to ensure the accuracy the information and Ratings in this document and cannot accept responsibility or liability for errors in or omission from any information given and for any consequences arising.

2 About this document This document outlines the key developments and trends that will inform the criteria we use for the 2016 Star Ratings for Cat Insurance and Dog Insurance and, based on these, sets out the areas where we would like to consult the industry as part ensuring that our ratings process remains robust and transparent. 2

3 Key developments and trends The market We have reviewed developments in the pet insurance market, considering legislation and regulation, provider changes, and pet insurance products and have concluded that there has been no significant changes. Legislation and regulation There have been no legislative changes or FCA review into the pet insurance market that would change our thinking towards the Star Rating criteria that is being considered for Providers The number providers in both the cat and dog insurance market has reduced by around a quarter. The majority providers that have withdrawn are from within the banking and home shopping arena, along with a small number home insurers which no longer fer cover as an option. Star Ratings Product Area 2010 no. providers 2015 no. providers % Change Cat Insurance % Dog Insurance % Products/propositions Following a restructure the pet insurance tables within Defaqto Matrix, we have reviewed the change in the number products over the last two years. There has been relatively little change in the number products and the market still fers a sizeable amount products for consumers to compare. Star Ratings Product Area 2014 no. products 2015 no. products % Change Cat Insurance % Dog Insurance % From our review the market, providers have developed products in two clear ways. Those with multiple products with set policy cover and limits (i.e. bronze, silver or gold ferings) and those which have a basic veterinary fees product with various cover options from which the consumer can choose. 3

4 Key implications for the 2016 Ratings process Product area weightings The criteria have been split into the following areas in order to show the weightings for each within the ratings: Rating - Cat Insurance 2014 No % share Star Rating Features 2015 No % share 2016 No % share Policy Cover 23 79% 25 83% 25 83% Policy Excesses/Terms 5 17% 4 13% 4 13% Helpline Services 1 4% 1 4% 1 4% Total % % % Rating - Dog Insurance 2014 No % share Star Rating Features 2015 No % share 2016 No % share Policy Cover 25 81% 27 84% 27 84% Policy Excesses/Terms 5 16% 4 13% 4 13% Helpline Services 1 3% 1 3% 1 3% Total % % % At each Star Rating review we consider market changes and the relevance these factors. As you can see the statistics above demonstrate that we will only change the criteria should the need arise following market changes or amendments, or potential amendments in legislation. 4

5 What does good look like? For 2016 we see no need to change the core criteria for 4 or 5 Star products from those which are currently being applied. Cat Insurance Core criteria set for the following Policy Cover Hereditary Conditions Congenital Conditions Number Alternative Treatments Loss or Theft Limit Policy Excesses/Terms Time Limit Dog Insurance Core criteria set for the following Policy Cover Hereditary Conditions Congenital Conditions Number Alternative Treatments Loss or Theft Limit Policy Excesses/Terms Time Limit 5

6 Areas for discussion These are the areas where Defaqto would like to discuss their proposals, and receive any feedback that you might have. No proposed changes No other changes to product studied There has not been any noticeable changes within the pet insurance market and therefore we believe that no further changes are required for 2016 We carried out a review our DNA scores and haven't seen any dramatic market changes that would require us to make any changes for the 2016 Ratings. There are no obvious elements policy cover that might emerge over the next 16 months. We cannot see any reason to remove any the existing elements cover from our Ratings because market changes likely to happen in the next 16 months. 6

7 Appendix: Proposed 2016 criteria Based on the above analysis, we propose including the following criteria in our assessment process for the 2016 Ratings (core criteria are in bold text). Proposed criteria Cat Insurance Death Maximum Age Accident Euthanasia Charges Death Maximum Age Illness Dental Cover Exclusion Period Alternative Medicine Sum Insured Claims Basis Number Alternative Treatments Maximum Vet Fees Per Condition in a 12 month period Death by Illness Total Vets Fees payable in a 12 month period Death by Accident Time Limit Pet Value Basis Covered for Life Cattery Fees Maximum Vet Fees Per Condition for life pet Loss or Theft Limit Total Vets Fees payable for lifetime pet Advertising Limit Behaviour Cover Reward Behavioural Limit Accidental Damage Third Party Diet Foods Holiday Cancellation Hereditary Conditions Overseas Travel Vet Fees Congenital Conditions Vet Direct Helpline We are not planning to remove any criteria for

8 Proposed criteria Dog Insurance Death Maximum Age Accident Dental Cover Death Maximum Age Illness Alternative Medicine Sum Insured Exclusion Period Number Alternative Treatments Claims Basis Death by Illness Maximum Vet Fees Per Condition in a 12 month period Death by Accident Total Vets Fees payable in a 12 month period Pet Value Basis Time Limit Kennel Fees Covered for Life Loss or Theft Limit Maximum Vet Fees Per Condition for life pet Advertising Limit Total Vets Fees payable for lifetime pet Reward Behaviour Cover Liability - Personal Behavioural Limit Liability - Property Diet Foods Accidental Damage Third Party Hereditary Conditions Holiday Cancellation Congenital Conditions Overseas Travel Vet Fees Euthanasia Charges Vet Direct Helpline We are not planning to remove any criteria for