What is really driving pet insurance claims in Australia

Pet insurance is now becoming a more visible part of the broker landscape, and claims data provides a clear picture of how it is actually being used.  

Rather than being driven primarily by rare or catastrophic events, most claims are generated by everyday illness, recurring conditions, and common household incidents.  

For brokers, this provides useful market intelligence on how clients engage with pet insurance in practice and the types of risks most likely to generate ongoing costs over time.  

Everyday conditions are driving claims  

The most common pet insurance claims are not major surgeries or traumatic accidents.  

Current claims data shows:  

• gastro and digestive issues account for 21% of claims   

• skin conditions make up 12%   

• ear infections represent 11%   

These three categories account for 44% of all claims. While many clients may expect insurance to be used for isolated emergencies, the majority of claims activity is driven by routine and recurring health issues.  

Source: Internal data from Knose claims records, July 2022 to April 2026.  

Illness is the dominant driver of claims  

Claims data shows that approximately 83% of total claims paid are illness-related, compared to 13% for injury.  

This distinction is important when understanding how policies are actually used in practice.  

Illness-related claims are typically ongoing and recurring, including:  

• allergies   

• digestive conditions   

• chronic skin issues   

• ear infections   

This creates a claims profile that is driven more by long-term care needs than isolated incidents. 

Source: Internal data from Knose claims records, July 2022 to April 2026.  

Everyday incidents can escalate quickly  

Some of the most familiar pet-related situations also appear regularly in claims data.  

Foreign body ingestion claims involving socks, toys, corn cobs, and household items average around $960, with some cases reaching close to $10,000.  

In more severe cases, treatment costs can escalate significantly. The highest recorded payout in the dataset exceeded $16,000 for a severe diarrhoea case requiring hospitalisation and intensive care.  

Source: Internal data from Knose claims records, July 2022 to April 2026. 

Vet costs continue to rise  

Average claim invoices have increased steadily:  

• $640 in 2024   

• $684 in 2025   

• $687 so far in 2026   

This represents a 7% increase year-on-year, reflecting changes in veterinary care, including increased diagnostic capability, higher operating costs, and more advanced treatment options. As a result, the cost of care is becoming an increasingly important factor in how clients approach pet ownership and financial planning.  

Source: Internal data from Knose claims records, July 2022 to April 2026. 

Understanding the claims reality  

The data is clear, pet insurance claims are driven far more by everyday health issues than rare or extreme events.  

For brokers, this is a useful reference point when positioning pet insurance in client conversations. It helps shift the discussion away from “unlikely emergencies” and toward the more consistent drivers of cost that clients are far more likely to experience.  

Practical tips for client conversations:  

• reframe pet insurance around ongoing treatment frequency, not isolated events   

• use real claim examples (gastro, skin, or ear issues) to anchor conversations   

• highlight that lifetime costs often come from recurring conditions, not emergencies   

• simplify illness vs injury to reset client expectations of what drives claims   

How cora and ThePetInsuranceCompany (TPIC) enable this  

TPIC, through cora, enables brokers to bring pet insurance into the advice process with flexible, configurable cover designed to support client needs.  

Brokers can access options including adjustable annual limits, flexible excess structures, and customisable benefit percentages, along with optional extras such as dental illness, behavioural cover, and supportive therapies. Cover can also include protection for vaccinatable diseases where requirements are met.  

Through the cora platform, brokers can quote and issue terms in minutes, making it simple to include pet insurance within existing client conversations.  

Understanding what actually drives claims helps brokers position pet insurance in a way that reflects how clients will truly use it. The reality is that pet insurance value is not defined by rare events, but by the everyday, recurring health issues that shape the true cost of pet ownership over time.

Sign up today to start quoting TPIC’s products through the cora platform.

Disclaimer:

Cora Insurance is a trading name of Insurance.com.au Pty Ltd (ABN 27 163 909 073). Insurance.com.au Pty Ltd (Authorised Representative No. 443422) promotes and distributes insurance.com.au Pet as an authorised representative of ThePetInsuranceCompany.com.au Pty Ltd (ABN 38 620 795 735, AFSL 536651) (“The Pet Insurance Company”), which in turn holds a binding authority from the underwriter, Pacific International Insurance Pty Ltd (ABN 83 169 311 193, AFSL 523921) (“Pacific”). When arranging this product, Insurance.com.au and The Pet Insurance Company both act as agents of Pacific — not as your agent. 

Any information or advice provided is general advice only and does not take into account your individual objectives, financial situation or needs. Before applying, you should consider whether this cover is right for you and read the Product Disclosure Statement (PDS), Target Market Determination (TMD), and Financial Services Guide (FSG), or call 1800 929 041.  

This product may help cover unexpected pet illness or injury and eligible vet costs; however, all cover is subject to underwriting assessment and insurer acceptance, and limits, conditions and exclusions apply.  

The Pet Insurance Company and Insurance.com.au have a commercial arrangement, but Insurance.com.au does not receive any per-policy benefit from The Pet Insurance Company. Please refer to our FSG and Privacy Policy for further information. While Cora Insurance takes care to present accurate information, no warranty is made as to the completeness or accuracy of any product information, and by using our services you acknowledge and accept these limitations.