This is an interesting article because it gives us some insight into how pet insurance companies use actuarial data when setting premiums for their policies. I don't actually know a lot about it, but when I've asked questions of pet insurance company representatives about their company's actuarial data, they are usually very secretive when it comes to discussing specifics.
In fact, companies use this data to adjust premiums from time to time. If you receive a notice that your premium is going up or down, this is probably the reason. I've read in the past year that some pet owners found that their premiums increased as much as 50%, and I've also read where some pet owners (same company) received the news that their premium actually decreased slightly.
I don't know, but when premiums change substantially, perhaps the company's actuarial data that the previous premium was based upon turned out over time to not be accurate? The article seemed to imply that as actuarial data accumulates over time, perhaps the accuracy of setting pet insurance premiums will increase. Maybe some pet insurance representatives who read this blog can comment?
One thing this article touched on was the "human factor." The fact is that we, as pet owners, can prevent some of the things that costs us money (sometimes a lot of money) and for which pet insurance companies end up paying claims. Obviously, the healthier your pet remains (a good thing), more money stays in your pocket, and if your pet is insured, the less the pet insurance company has to pay out in claims (good for them).
To learn how you can prevent problems and keep your pet healthier which will keep more money in your pocket, you can download a free copy of The Wise Pet Owner.