Pet insurance gaining popularity amid rising medical costs, longevity
Friday 21st January, 06:35 AM JST
TOKYO — Like humans, pets are living longer these days thanks to advancement in medical technology. At the same time, their medical bills are also on the rise, prompting more pet owners in Japan to take out ‘‘pet insurance’’ to mitigate the expenses.
Miho Hoshina, a 39-year-old company employee residing in Tokyo, is among those considering doing so, after she paid a hefty 67,000 yen of pet medical fees in October when her family dog, Maruko, accidentally swallowed a piece of plastic and had to undergo an endoscopic procedure.
‘‘The two medium-sized underbred dogs we used to have were strong and rarely had to visit the vets, but Maruko is a small indoor dog and quite naughty so I am a bit worried,’’ Hoshina said.
Under antitrust laws, veterinarians are given a free hand in determining medical fees and owners bear the full cost for their pets’ treatment. Many owners nowadays treat their pets as members of the family and have become more concerned about their well-being, often seeking advanced medical treatment that could be very costly.
Pet insurance policies are undertaken by about 10 nonlife insurance companies and small insurance businesses. Policies cover from about half to as high as 90 percent of the medical expenses, such as surgery, if the contract began by a certain age of the pet.
At Anicom Insurance Inc, a Tokyo-based company with the largest share in the pet insurance market, some 90% of its contracts are taken out on dogs, although it also offers a variety of policies including for such pets as birds and rabbits.
Premiums are fixed according to the pets’ breed and ages. For example, an insurance premium for a 1-year-old toy poodle is 2,370 yen a month which covers half of the medical expenses up to a certain limit, the insurer said.
Some other companies also provide a wide range of other plans with different compensation rates and other benefits, as well as policies with fixed premiums regardless of the pet’s age.
Fuji Keizai Co., a private market research company in Tokyo, estimates that enrollment in pet insurance remains at only a few percent of pet-owning households in Japan, but is expected to grow.
‘‘It used to be just a mutual aid system that was not under any regulatory authority. Now that it has been signed into law, requiring product evaluation and disclosures under the supervision of the Financial Services Agency, the system has become more well-known and more credible,’’ said Shimpei Iwama, who analyzes pet-related industries at Fuji Keizai.
Meanwhile, the National Consumer Affairs Center of Japan advises pet owners to ensure they have thorough understanding of the insurance policies, such as the extent of coverage, before concluding any contracts.
‘‘While owners are likely to go for the insurance plan as they purchase the animal at the pet shop, it is better to make sure you get a clear and thorough explanation of the terms and conditions before signing into any contract, just like when choosing any other kind of insurance,’’ an official at the state-backed center said.
Pet insurance used to be an unauthorized product. Under the Insurance Law revised in 2006, enterprises are required to obtain a license as insurance companies or register as a small-sum, short-term insurance business to be able to get new contracts.
2011 Kyodo News
Source: www.japantoday.com
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