National Casualty Company, part of Nationwide, has secured approval in Nevada for changes to its My Pet Protection Plus pet insurance program that limit how much a policyholder’s utilization tier can change at renewal. The update takes effect August 28, 2026 for both new business and renewals.

The filing introduces a cap that restricts movement to no more than five utilization levels up or down at renewal. Utilization levels are determined using the prior 12 months of closed medical claims and are a key factor in renewal pricing. Nationwide said the change is intended to promote long term rate stability.

The program uses a 10 level structure that segments policyholders based on annual paid claims, with higher claim activity driving movement into higher tiers. All new policies begin at Level 1. For dogs and cats, the experience review includes illness, congenital and hereditary conditions, and cruciate claims, while for birds and exotic pets the evaluation is based on illness claims only.

From a competitive standpoint, the move reflects a growing focus on renewal stability in the pet insurance market. By limiting large upward shifts after a high claim year, Nationwide is reducing the risk of premium shock and improving persistency, while also smoothing loss recognition over multiple renewal cycles. The approach signals a balance between experience based pricing and customer retention as carriers look to manage lifetime value in a product line characterized by rising utilization and increasing consumer price sensitivity.