Kasetsart Animal Hospital. Photo: Melalin Mahavongtrakul
Normally a lively and eager-to-please Chihuahua, Mee-pool became miserably sick earlier this year. Even though it was merely a canine cold the treatment cost more than 1,000 baht and that prompted owner, Manuschaya Chairat, to seek pet insurance for her two-year-old four-legged friend.
“It was the cool season when he caught the cold, which may strike again this rainy season. If so, expensive medical treatment will not be such a burden since my dog now has pet insurance,” said Manuschaya, who last month purchased a policy from Aeon Insurance Service for Mee-pool, who is named after the English football team Liverpool.
She pays a monthly instalment for the annual 3,800 baht premium. Besides veterinary treatment, the insurance policy also covers pranks of the Mexican toy breed notorious for snapping strangers.
“I was more interested in the medical treatment cover more than other benefits from the policy. And I have recommended it to my friends, including one who has a bulldog,” she added.
Animal rights and welfare is a sensitive issue in Thailand. But although almost every day we hear tear-jerking news stories about the mistreatment of animals, especially stray dogs and cats, there are a lot of businesses that cater to the high-end pet market, too. The pet insurance business is one of them, with Muang Thai having pioneered canine and feline policies while Mittare introduced dog insurance with a breed-based premium structure.
“Launched three to four years ago, the Muang Thai Cats & Dogs Insurance serves as a lifestyle product for pet owners,” said the insurer’s senior executive vice-president Wasit Lamsam. “We have thousands of clients but that is relatively low compared to the number of pet owners, who love their cats and dogs as if they were their own kids.”
More marketing and public relations activities need to be carried out, he noted, to raise awareness and an understanding of the pet insurance policy and its cover, which includes death by accident or sickness; medical expenses caused by accident or sickness; and third party liability caused by pets.
The lack of statistics, such as medical expenses, frequency of sickness and accident by breed, hinders the design of appropriate policies to meet the circumstances of the country’s growing pet population.
Statistics are available in pet-loving nations with a well-established insurance industry. According to a BBC report released in March, a record-breaking 911,000 pet insurance claims were made last year in the UK, further citing that most of Britain’s 9 million dog owners and 7.9 million cat owners do not pay for insurance cover.
An unanticipated claim for a costly Louis Vuitton bag damaged by a tiny toy breed had Muang Thai reviewing the coverage of third party liability caused by a pet, cutting it to 1,000 baht per time per year.
“We wanted to focus more on the coverage for accident and sickness since rising medical expenses is a major concern among pet owners,” said Wasit. “The policy also covers advertising costs to find lost pets, of which no claim has yet been made.”
Death by accident, including the recent case on board Nok Air’s cargo in which a Siberian Husky was found dead on a flight from Bangkok to Trang, would have been covered if the dog had been insured.
The insurance is offered to pooches and kitties with or without microchips. The premium for microchipped pets ranges from 2,600-6,500 baht per year whereas coverage includes medical expenses for accidents (2,000-10,000 per incident) and from sickness (a maximum of 5,000 to 25,000 per year).
Underwriting conditions include an entry age at three months and an upper age limit of seven years; pets have to be vaccinated and healthy without injury and disability.
Revising these limits may attract more clients, particularly those with older dogs and cats due to their longer lifespans following better care and advanced veterinary diagnosis and treatment.
Saraporn Asawavetvutt, for instance, is interested in pet insurance but her pretty and spoiled Pomeranian, Namcha, is already seven-years-old.
The average lifespan of a healthy and well-cared Pomeranian is from 12-16 while a Chihuahua is longer, 15-20 years. With ageing comes medical conditions such as heart disease, arthritis and cancer, of which the occurring vet expenses are covered in policies for pets at any age offered in the UK and the US.
“My Beagle, Chaiyo, had an eye wart removal, which cost me thousands of baht. The electrosurgery for dogs was more expensive than when I had my own mole removal,” said pet owner Chuteeporn Ratanarat.
Because of big vet bills, the communications manager is interested in buying insurance for five-year-old Chaiyo and his equally handsome brother, Obo. Both of them are on-paws explorers, which is another concern for the owner.
“Beagles rate high in lost pet statistics because of their wanderlust nature in following fascinating sights or smells. I want to get Chaiyo and Obo pet insurance but I don’t really know about the available policy, conditions and coverage,” she said
Still in its infancy, the local pet insurance business will have to continuously communicate to target groups in order to raise awareness.
Broker for Muang Thai, Aeon Insurance Service promotes its Dog & Cat Lover policy through monthly statements sent out to Aeon card members.
The company’s managing director, Sakarabhop Dhivarakara anticipates a positive response of what was initially market testing, deeming that the relatively new product corresponds to the growing pet care businesses, such as in offering food, accessories and services. “Dog spas and cat cafes didn’t exist a decade ago but today they have become a part of pets’ lifestyles. If owners can afford hundreds of baht for dog grooming, they may well pay for pet insurance,” said Sakarabhop.
Japan’s pet insurance industry is more advanced than Thailand, he added, with more players competing in attracting pet owners, of which a considerable number live alone with dogs and cats as their companions.
Sakarabhop predicts a similar “single society” trend for Thailand, where additionally childless couples, as well as same-sex partners may nurture canine and feline kids instead.
“Pet insurance will become more relevant to people’s lives, like having life and car insurance. Middle-class pet owners will be particularly interested in taking out this type of insurance to mitigate against veterinary bills,” he said. “However, because of the lack of marketing, it is not yet a booming business. More insurance companies will jump on the bandwagon to offer me-too products.”
The country’s first company to offer dog insurance, Mittare, has already taken that to the next level by structuring the premium based on breed — from mongrels (1,000 baht) and Thai Ridgebacks (2,650 baht) to Shis Tzus (2,650 baht) and Bull Terriers (3,950 baht).
For microchipped and vaccinated canines aged three to seven-years-old, the policy covers death by accident or sickness, medical expenses caused by accident and third party liability caused by pets.
Underwriter Pongphera Jirapongdechanon receives many phone inquiries from interested dog owners but they may be reluctant about pet insurance, in the same way that they have to think twice about buying other types of insurance.
“People may not yet understand the benefits of pet insurance,” he said. “The thinking that their dogs mostly stay at home and are well taken care of makes owners overlook unexpected financial costs that may occur.”
Namcha. Photo: Kanokporn Chanasongkram
This source first appeared on Bangkok Post Lifestyle.