We love them. We pamper them. But we don’t insure them. In Switzerland, only a small fraction of cats and dogs are insured, while the majority of pet owners in Sweden have health insurance for their animals. Charles Perraudin, CEO of Epona, owned by Vaudoise Assurances, discusses the bright future ahead for pet insurance in Switzerland.

In Switzerland, only 17% of dogs and 2.5% of cats are insured. Although these percentages are comparable to those in countries such as Italy, France and Germany, they’re still a long way from rates in Nordic countries and the United Kingdom. For example, in Sweden 91% of dogs and 56% of cats have health insurance. This difference is mainly due to a lack of information. Our research shows that only 50% of Swiss pet owners are aware that animal insurance even exists. If we could inform all owners, the rate of coverage would inevitably rise.

Veterinary care is still relatively cheap in Switzerland, and the population’s purchasing power is high. As a result, many owners simply cover the outlay for veterinary care without getting insurance. On average, a mutual insurance policy costs around 450 Swiss francs a year for a dog and around 300 Swiss francs for a cat, depending on the excess. But as vet bills tend to rise, more and more households are turning to pet insurance. Nobody questions their fire insurance because if your house burns down, you can’t afford to cover the costs on your own. 

The pet insurance market is already showing strong growth. Ten years ago, less than 5% of cats and dogs were covered in Switzerland, compared to more than 10% today. This trend is likely to continue, even though pet insurance is not mandatory. It’s an emotional purchase. As owners become more attached to their pets, they’re more susceptible to take them to the vet.

In turn, their spending increases, and they may be encouraged to take out insurance. Meanwhile, veterinary care is becoming more specialised and technologically advanced, which means higher costs. These factors make it worthwhile to consider a mutual health insurance policy for pets.

Not yet. Pet insurance is not profitable for now, because we’re in an investment phase. With its Animalia and Epona brands, Vaudoise Assurances already dominates the sector in Switzerland, with almost 60% market share. We believe that by achieving critical mass, we’ll eventually be able to generate profits. However, certain challenges remain. Our costs are rising, as owners consult us more frequently, and veterinary medicine becomes more expensive. But adjusting our prices accordingly is tricky, because customers may not appreciate it every time premiums rise. Striking the right balance is a challenge.

Absolutely. Unlike human healthcare, the animal healthcare industry is not regulated. No standard rate applies for veterinary procedures, and practitioners are free to set their own prices. That leads to major disparities across Switzerland for similar medical services. This unpredictability makes our business more difficult to manage than in human healthcare.