The increasing risk of fraud within the pet and equine insurance market is coming under greater scrutiny across the sector. Orla McElroy, Director in our Dispute Resolution team, outlines the main types of pet insurance fraud, the situations in which they typically arise and the steps that can help reduce the risk.
This year’s IFIG conference included an important contribution from Sharon Brown, CEO of the Pet and Equine Insurance Association, which highlighted the growing exposure of the pet and equine insurance sector to fraud. Regulators, insurers and industry bodies now view fraud in this area as a genuine financial and regulatory risk rather than a peripheral concern. This is particularly significant in Northern Ireland, where it is estimated that just over 50 percent of households own at least one pet.
UK pet insurers paid out approximately £1.23 billion in claims last year. At the same time, the Association of British Insurers has reported that insurers detected over £1 billion in fraudulent insurance claims in 2024. Non‑motor lines, including pet insurance, make up a growing share of those detected cases.
Pet and equine insurance fraud is most commonly prosecuted as fraud by false representation or fraud by failing to disclose information. Fraud can arise at different stages of the insurance relationship, including when a policy is taken out, during the life of the policy, or when a claim is made.
The most common form of pet insurance fraud is the failure to disclose pre‑existing medical conditions at the point of application. Claims are then submitted for treatment linked to those undisclosed conditions. Recent examples insurers are reporting include policyholders taking out insurance after symptoms have already appeared, inflating veterinary bills, and submitting the same claim to more than one insurer.
Pet and equine insurance fraud remains an emotive and evolving challenge. While some disputes arise from misunderstanding or poor disclosure, deliberate misrepresentation can amount to serious criminal conduct. In a context of increased regulatory scrutiny and expanded corporate liability, education of customers and health care providers will assist in fraud prevention and help to maintain confidence in this specialist sector.
For legal guidance and advice regarding these changes, please contact Orla McElroy or any member of our Dispute Resolution Team for more information
While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.
