The latest Pet Insurance Pricing Index from Defaqto’s Market Pricing Business shows that premiums continued their downward trajectory in Q1 2026, extending the declines seen at the end of last year.
The data shows that Lifetime premiums fell by -4.7% during Q1 2026, following the -2.3% decrease seen in Q4 2025. The development confirms that the brief stabilisation seen in mid-2025 has given way to a more sustained period of price competition.
Sustained declines reshape annual and longer-term pricing trends
On a 12-month view, premiums are now firmly in decline. Average prices have fallen by -8.2% over the past year, with Q1 marking a clear shift from the alternating quarterly movements seen throughout 2025 to a more consistent downward trend.
While this signals short-term relief for consumers, the longer-term picture remains more complex. Previous data shows that, despite recent reductions, premiums – particularly at higher cover levels – remain materially above 2023 levels, reflecting the ear