Shonky award highlights annual reset terms
Australian consumer group CHOICE has named pet insurer Petcover among the winners of its annual Shonky Awards, singling out its Economy policy for resetting cover every 12 months. According to CHOICE, customers are issued a fresh policy rather than a standard renewal, meaning any condition suffered during the previous year is categorised as pre-existing and excluded from future protection. The consumer group also noted that the policy wording can exclude unrelated conditions sharing clinical signs with an earlier illness, that single-condition cover runs for a maximum of 12 months, and that reimbursement rates drop from up to 100% to 65% when a pet reaches 10 years of age. Petcover strongly rejected the characterisation, stating that the Economy plan is specifically designed for pets over eight years old and provides unique cover options for older animals.
UK market context and regulatory focus
While Petcover's UK brands—including British Pet Insurance Services and ExoticDirect—operate under a separate regulatory regime and were not part of CHOICE's findings, the product structure under scrutiny mirrors time-limited policies operating as the budget tier in the UK market. The Financial Conduct Authority has placed pet insurance on its watchlist regarding customer understanding and pricing, while the Financial Ombudsman Service upholds roughly half of disputed pet insurance claims. Industry data shows ABI members paid out a record £1.23 billion across 1.8 million claims in 2024, with average claims reaching £685 against average premiums of £389. Defaqto figures indicate pet prices have risen by about 4% since 2023 alongside a 31% increase in the ONS veterinary services index, while co-payment policies have grown to account for 41% of the UK market.