Pet insurance prices fell 2.5% in March, according to data from Pearson Ham. The drop follows a prolonged period of rises – in February, prices were 21% higher than the same month last year. It also coincides with the Competition and Market Authority announcement that it will investigate the vet market.

Stephen Kennedy, director at Pearson Ham Group, said: "There are multiple factors influencing pet insurance pricing, including developments in diagnostic tools and treatments, which are escalating claims costs. Furthermore, there is a notable disparity in vet fees across the UK, reflected in insurance pricing, though this gap is narrowing as vet ownership consolidates. A likely impact of that, however, is that pet insurance premium inflation has increased across the board.

“The CMA's announcement of a formal market investigation into the vet market alongside the reduction in pet insurance premiums in the same month is significant. While it's challenging to determine the precise impact at this stage, it is likely that pet owners will benefit from these developments. By how much and by when still remains to be seen.”