33% Rate Hike On The Way For Axis Pet Insurance Policyholders In New York | Insurify

New York pet owners who buy their pet insurance through AXIS Insurance will face steep increases when their policies come up for renewal. The state's Department of Financial Services (DFS), which oversees insurance companies in the Empire State, recently approved AXIS' request for a 33% rate increase.

The increase will apply to all new policies as well as the 14,659 existing policies, according to filing documents AXIS submitted to the state.

AXIS said the increase and other changes it requested are necessary to "offer long-term rate stability with very comprehensive and competitive coverage. …" The company also cited a 60% loss ratio for its pet insurance business.

AXIS first began selling pet insurance in 2021.

Impact on premiums

The company's base rate to insure cats will rise from $241 per year to $313 under the approved changes. The annual base rate for dogs will jump from $502 to $653. The base rate is a starting price point for insurance companies, which then adjust a policyholder's premium based on individual rating factors.

The majority of current AXIS policyholders will see increases in the range of 33%, with varying impacts on premiums.

In its rate increase request to the DFS, the company noted that the largest dollar increase from the rate hike will be more than $2,700 per year. The single affected policy insures a 15-year-old domestic shorthair cat living in New York City. The annual premium will rise from $9,227 to $11,996 per year.

What's next: New York may re-examine how it regulates pet insurance

Like many states, New York regulates pet insurance under inland marine coverage — a type of property and casualty product. State law considers pets to be property.

In 2024, the state Legislature unanimously passed a bill that would have revised how the state regulates pet insurance. It would have established uniform definitions for pet insurance terms and multiple disclosure requirements.

But Gov. Kathy Hochul vetoed the bill in November of last year. In a veto memo, she called the bill "duplicative" and said it would "cause confusion" over what parts of the state's insurance laws would apply to pet insurance.

The bill's co-sponsor, Assemblywoman Pamela J. Hunter, told Insurify she plans to re-introduce the bill in 2025. "Pet insurance is available, but getting this bill enacted will improve quality and consistency."

Related articles

The post 33% Rate Hike on the Way for AXIS Pet Insurance Policyholders in New York | Insurify appeared first on Insurance News | InsuranceNewsNet.