RSA has confirmed the initial 27 practices that have joined its new Preferred Referral Network, launching today.
The creation of the network means that whilst veterinary surgeons can continue to appoint referral practices as they do now, owners of animals needing a non-emergency referral outside the RSA network may need to pay £200 towards the cost of treatment.
The new rules currently apply to holders of policies issued by Tesco Bank and MORE TH>N, however RSA says it is in discussion with other insurance brands about adopting the new network.
RSA says the Preferred Referral Network will enable it to provide competitively priced products and deliver a range of benefits for customers including:
The company is highlighting the fact that its new network fields 178 RCVS, EBVS or AVMA recognised specialists, 49 Diploma holders and 71 Certificate holders or Advanced Practitioners, working at a mixture of large, multi-disciplinary centres (including five with links to university teaching hospitals), independents and corporates.
RSA says that over the last 12 months, vets have directed more than half of all RSA cases to the 27 practices in its network.
Bill Paton, Claims Director for UK and Western Europe said: “We are delighted to have twenty seven practices from around the UK join our preferred referral network. This is a huge step forward and will enable us to continue to provide competitively priced insurance cover with access to the highest standards of veterinary treatment and care.
"We expect further practices to join the Network in due course and we are actively engaged in discussions with a number of referral practices of varying size and scale, which have expressed an interest in joining."
The 27 referral practices are:
South East
South West
Midlands
North West
North East
East
Scotland
* referral arrangements still being finalised
RSA has announced the rollout of its UK-wide network of preferred referral practices.
The scheme caused widespread concern within the profession when it was trialed in the Midlands earlier this year, primarily because of fears that it would reduce general practitioners' freedom to refer an animal to a centre that they felt could provide the most appropriate care for both the animal and the owner. In addition, RSA's claim that it was aiming to provide like-for-like care at a lower cost was undermined by the fact that the network could hardly field a single RCVS Recognised Specialist amongst its numbers. There were also concerns being voiced about the terms under which referral practices could join the network.
However, the underlying challenge of keeping pet insurance affordable remains. RSA says that according to its research, and based on Association of British Insurers averages, 27% of its customers pay more for their pet insurance than the average cost of home insurance; 17% pay more than the average cost of car insurance and 3% pay more than the average cost for private medical insurance.
It does seem as though RSA has been making a concerted effort to adopt a more collaborative approach before the nationwide rollout, having meetings with both the BVA and BSAVA which the respective organisations described as 'constructive'.
The current state of play is that RSA is inviting referral practices to join its network in advance of a launch some time after the end of the year. Thereafter, VetSurgeon.org understands that clients who decide to opt for a non-emergency referral outside its network will be subject to an additional flat fee which has yet to be announced.
Bill Paton, Claims Director for UK and Western Europe said: “The introduction of this new preferred referral network ensures that our customers will receive the most appropriate available treatment as diagnosed by their vet.
"For us, being able to control costs with our vet partners in the network will help us manage our claims cost more effectively and ensure that policy limits last as long as possible.
"Ultimately, this will have a positive effect on premium rates for our customers ensuring that pet insurance remains affordable.”
For more information about joining RSA's referral network, email: rsa.pet@uk.rsagroup.com.
A group of some of the best-known referral practices in the country has issued a formal response to the recent announcement by pet insurance underwriter RSA that it is building a network of preferred referral practices to direct its clients to.
Whilst RSA has clarified the contents of a letter it sent to practices in the Midlands and North West, and apologised to the profession for the confusion it caused, it has not yet responded to any of the other concerns raised by the profession.
Perhaps chief amongst those is the claim by RSA's Head of Pet Claims, Keith Maxwell, that the company is looking to provide like-for-like treatment at a lower cost from its list of preferred referral practices.
Referral vets from Anderson Moores Veterinary Specialists in Hampshire, Cave Veterinary Specialists in Somerset, Davies Veterinary Specialists in Hertfordshire, Dick White Referrals in Suffolk, North Downs Specialist Referrals in Surrey, The Veterinary Cardiorespiratory Centre in Warwickshire and Willows Veterinary Centre in the West Midlands say that RSA's current list is simply not representative of the RCVS Recognised Specialist expertise and advanced therapies available within the veterinary profession, thereby making it impossible for RSA to offer like-for-like treatment, let alone at a lower cost.
Clive Elwood, Managing Director of Davies Veterinary Specialists in Hertfordshire, speaking on behalf of the practices who have expressed concern about the move, said: "An approach that focuses on cost-cutting rather than quality of patient care and lacks any genuine or objective process to benchmark clinical standards is inappropriate. Many multi-disciplinary centres place enormous value on the importance of Recognised Specialists being involved at every level of care including consultation, anaesthesia and imaging assessment and the proposed restrictions may preclude this level of service in some instances. We understand that balancing high standards of care and affordability for owners and insurance companies is an important issue and we hope insurers will work with all sectors of the profession to find constructive workable long term solutions."
Mike Martin of the Veterinary Cardiorespiratory Centre in Warwickshire added: "Owners buy pet insurance to ensure that they can access the best available expertise when their animals are ill. I don't think any owner wants to have their choice of practice restricted by insurance companies who are primarily concerned with encouraging shortcuts to reduce costs."
The British College of Veterinary Specialists has invited RSA to attend a meeting to discuss issues of concern, but says it hasn't thus far received a reply.
RSA Insurance Group, which underwrites pet insurance on behalf of MORE TH>N, Tesco Bank, M&S, John Lewis, Argos and Homebase, has clarified recently announced changes to its policy conditions concerning cases which need to be referred for specialist treatment.
In a letter dated 22nd May, which was sent to practices in the Midlands and the NW, the company said:
"With effect from the 25th May 2015, if you need to refer a pet under any of the above Brands to a specialist or referral vet, and the visit is not in response to an emergency, then our customer / your Client can contact us on the relevant number below before any appointment is made. We will then agree which of our preferred specialist or referral practices our customer should go to, dependant (sic) on the individual circumstance relating to the claim. If our customer does not get in touch with us or we have not agreed to the visit, then this could result in our customer suffering a financial impact. This amount will be in addition to the policy excess."
Speaking to VetSurgeon.org, Keith Maxwell, Head of Pet Claims at RSA said: "What we're saying to the primary practices is that we want to speak to our customers before they go to a referral vet. We want to engage with our customers to let them know that we have referral vets who we are starting to work with across those specific regions. We are not saying to customers that you have to use those referral vets and if you don't, we won't provide cover."
This appeared to contradict a statement that a member of VetSurgeon.org had received from John Lewis earlier which said: “If you decided to go to a specialist that wasn’t approved by us, we wouldn’t cover the costs." Keith said: "That is not correct."
Clarifying the financial impact referred to in the company's letter to veterinary practices, Keith said: "In terms of any sort of financial impact on the customer, if we think about the level of benefit that a customer will have under their insurance policy, they will have a maximum cash benefit. If a customer goes to one specific referral vet and the cost of treatment is extremely high, and they have a choice of going to a referral vet that we have been interacting with to get a like for like treatment, the cost will be lower, the financial impact on the customer will be that the overall benefit available to them will be eroded at a faster rate."
He added: "The other thing I would say is that certain customers under our policies will have a policy excess which will be on a percentage basis. Now if you think about a higher cost treatment which will incur a percentage excess, it will be a higher amount the customer will have to pay, as opposed to going to a referral vet where they can get the exact same high quality treatment, but the overall cost will be lower; they will pay a lower excess. So we are not saying we are going to penalise a customer. There are other financial consequences i.e. eroding benefit or having to pay a greater amount of excess."
Whilst RSA appears not to be removing the freedom of choice over referrals, there remains the potential for a conflict of interest when a primary practitioner recommends treatment at a centre they believe to be the most suitable for the case, and the client then rings the insurer only to be advised to use an alternative, primarily for reasons of cost. Keith said: "What I would say is that we are at the start of a journey. We've selected a small part of the country. We are very much in a 'test and learn' phase. As we have selected referral vets, we have gone through obviously quite a lengthy process of engaging with referral vets, looking at specialism, looking at their accreditation, looking at their capability, their skill, equipment within their practices, what their areas of specialism are, so we are building up this view. It does come down to we want to learn from this. We want to engage with our customers. We want to offer our customers choice. We want to make sure that our customers will not be receiving an inferior service or inferior treatment or level of specialism in any specific way."
VetSurgeon.org asked how RSA has selected its preferred referral practices, and how others can join its network. Keith said: "When we started this journey, we made contact with a significant number of referral vets across the country. Some referral vets just said point blank 'No, we don't want to talk to you'. Others said 'Yes, we'd like to come and have some discussions'. So we took those forward and then we took the referral vets through a benchmarking process based on a full list of criteria, and within RSA we have veterinary expertise helping us along that journey, so we're not just doing this on our own. We are very much an open door to interacting and liaising with referral vets."
Keith concluded by saying: "We are focused on our customers here. We are focused on making sure that pet insurance is sustainable in the long term, both for our customers and for vets across the country."