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Reforms to the UK veterinary sector by the Competition and Markets Authority (CMA) are set to increase the complexity of insurance pricing rather than lower costs, according to Defaqto, the UK’s provider of financial product ratings and market intelligence.
The findings follow the CMA’s final report into the £5bn-a-year market published on 24 March 2026.
The CMA measures include standard price lists for common services, mandatory written estimates for treatments exceeding £500, and a cap on prescription fees.
Prescription fees will be limited to £21 for the first medicine and £12.50 for additional items.
While these measures aim to improve transparency, Defaqto warns that structural trends are likely to offset potential savings.
Corporate consolidation remains high, with six large groups owning approximately 60% of UK practices.
Insurers are expected to move toward more sophisticated, data-driven pricing models.
Standardised pricing data will allow providers to refine their underwriting based on geographic and provider-specific variations.
Stephen Kennedy, director of Defaqto’s market pricing business, said: “Greater transparency and the introduction of capped prescription fees should help reduce certain day-to-day treatment costs. However, it is important to recognise that these reforms are unlikely to materially reduce the overall cost of veterinary care.
“In many cases, the changes will simply redistribute costs rather than remove them. As pricing becomes more visible pet owners will gain a clearer understanding of the true cost of advanced treatments which have increased. This is likely to drive continued demand for comprehensive insurance cover, which in turn could place upward pressure on premiums.”
Kennedy added: “The long-term impact of the CMA’s reforms is unlikely to be lower premiums, but rather a shift towards more sophisticated, data-driven pricing strategies. Insurers will be operating in a more transparent market, where understanding competitor pricing and cost dynamics will be critical to maintaining a competitive position.”
