Mississippi moves to regulate pet insurance
The legislation should help consumers better understand how to select pet insurance versus pet wellness plans.
Pet insurance may represent a relatively small piece of the annual premium pie in the property and casualty insurance business, but this roughly $2.6 billion market is significant enough to get the attention of state insurance regulators.
Mississippi Gov. Tate Reeves recently signed a bill into law that regulates pet insurance in that state. The Magnolia State is the second in the U.S. (after Maine) to pass such legislation, according to Mississippi Insurance Commissioner Mike Chaney. The new law goes into effect July 1, 2023.
The purpose of Mississippi State Bill 2228 is to provide guidelines for the sale, issuance and renewal of pet insurance policies. The law also requires pet insurance providers to disclose to consumers certain policy exclusions and limitations, and it directs the Mississippi Insurance Department to establish training requirements for insurance providers.
“Pet insurance may seem like a joke to some but it is big business,” Chaney said in a recent press release about the new law. “As of 2020, there were 3.1 million pets insured. That is billions of dollars in premiums… coming to Mississippi.”
There are around 3.9 million insured pets in the U.S., according to the Insurance Information Institute and the North American Pet Health Insurance Association. The NAPHIA also reports that:
- The average accident and illness premium for dogs was $583 a year or $49 a month;
- The average accident and illness premium for cats was $343 a year or $29 a month.
- The largest share of insured pets reside in California, New York and Florida.
- The largest number of pets insured in 2022 were dogs at 82% versus cats at 18%.
Similar to human health insurance, pre-existing conditions and hereditary or congenital diseases can trigger pet insurance exclusions.
“Pet owners must decide for themselves if insurance is right for them,” Chaney continued. “In some cases, it could save you money.”
There’s good reason for pet parents to look around for the best coverages for their furry family members. They also should recognize the difference between pet insurance, which is meant to cover the cost of unexpected animal injuries and illnesses, and pet wellness plans, which are designed to cover routine vet care.
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