The size of the Asia Pacific Pet Insurance market is estimated to be worth USD 928.87 million in 2023. It is expected to grow at a robust CAGR of 14.6% to reach USD 1801.05 million by 2028.
The increasing animal population, changing demographic structure, and changing socioeconomic conditions are contributing to the growth of the Asia-Pacific Pet Insurance market. The growth in adoption of pets across the Asia-Pacific is growing significantly. Due to the recent COVID-19 pandemic, people have had to spend more time at home because of the imposed lockdown restrictions and travel bans and are likely to have the company of animals. Therefore, cats and dogs have been widely adopted in Asia-Pacific. In addition, people living alone and people who have busy lives are adopting pets to relax by playing with them after work. The number of pets has increased significantly in recent years, which is expected to increase during the forecast period due to various medical benefits. Also, pet owners are concerned about health benefits. Such factors are anticipated to result in the growth of the pet insurance market in the Asia-Pacific region.
In addition, the growing demand for pet insurance to limit out-of-pocket costs for primary medical conditions such as cancer and accident injuries is expected to support the Asia-Pacific Pet Insurance market. The growing veterinary costs favor the pet insurance market in the Asia-Pacific. Chronic diseases in pets cost more for treatment, and most people cannot afford the treatment. As a result, pet insurance is the way to have treatment under insurance policies, reducing the treatment cost.
Furthermore, the growing awareness regarding pet insurance and increasing efforts from market participants to promote awareness regarding the benefits associated with taking insurance for their pets are boosting the pet insurance market in the Asia-Pacific. Several programs have been conducted in this region about taking insurance for their pets to maintain their adoption and related health insurance policies. Along with the policies, they also provide the devices used to monitor the health of their pets and cover the minimum charge for regular pet check-ups. As a result, Japanese and Indian people are more aware that taking pet insurance for medical treatment increases the life expectancy of pets. Therefore, the shallow penetration and untapped markets are expected to offer many opportunities for the pet insurance market. In addition, the rise in the companion animal population would increase the demand for veterinary healthcare facilities and create growth opportunities in the Asia-Pacific Pet Insurance market.
However, the high costs associated with pet insurance are expected to hinder the growth of the Asia-Pacific Pet Insurance market. The leading consuming challenge in the Asia-Pacific Pet Insurance market is the poor understanding of insurance policies that do not provide the necessary information and cover only essential data. In addition, lower awareness levels regarding pet insurance among people in the Asia-Pacific region are hampering the APAC market growth. People in rural areas need to be aware of pet insurance and the advantages of having insurance policies for their pet's healthy life. The high premium cost is another reason that hampers market growth. In addition, growing cases of fake and fraudulent pet healthcare insurance providers impede market growth.
The research report on the Asia Pacific Pet Insurance Market has been categorized based on Policy, Policy Type, And Region.
By Policy Type:
Geographically, the pet insurance market in the Asia Pacific is expected to grow at the highest CAGR during the forecast period owing to increasing awareness about pet insurance policies in the region, combined with the growth in the number of companion animals due to increased necessity for companion animals for mental wellbeing and as well as a status symbol in the developing economies such as India and China. The relatively untapped market in this region provides a substantial opportunity for market growth as there is a growing demand for pet insurance providers due to increases in disposable incomes and willingness to spend on pet care.
China accounted for a substantial share of the APAC market in 2021. The pet insurance market in China is majorly driven by the increasing adoption of technological advancements and growing living standards. In 2019, the number of pet insurance was 1,60,500, which is expected to increase in the coming years due to increasing care toward pet animals. Additionally, the region has the highest market growth due to the availability of different types of pet insurance, such as death, injuries, and chronic disease. Insurance companies in China have increased their human and financial resources to develop more insurance products. A recent survey shows cat and dog owners are taking more insurance policies due to the benefits of pet insurance.
In the future, the Indian pet insurance market is anticipated to grow at a healthy CAGR owing to the growing awareness among people and increasing veterinary costs. In 2022, Future Generali India Insurance Company Limited (FGII) launched the FG Dog Health Cover, pet insurance for dogs. They also held a digital campaign, ' Oh My Dog!', which helps create social media awareness about taking dog health insurance. In addition, the increasing number of veterinary doctors in this region also drives the market forward.
The pet insurance market in Japan is anticipated to grow considerably during the forecast period. In Japan, nearly 70% of pet owners have taken pet insurance to cover medical care. This is mainly because the healthcare cost of animals is more expensive than the healthcare cost of a human. In addition, increasing efforts from Japan's market participants are expected to result in market growth. Many companies are focusing on launching customized insurance policies for pet owners to leverage the popular schemes available. Penetration of social media and growing awareness of the benefits of pet insurance policies are ascribed to bolstering the market growth rate. Also, government support for policies and regulations may fuel the demand for pet insurance policies. A growing number of chronic diseases among pets is raising the prominence of healthcare insurance policies.
The pet insurance market in South Korea is expected to showcase huge growth opportunities in the coming years. In 2022, the number of pet owners in households in South Korea was around 6 million. Therefore, the rising demand to own pets, especially in urban areas, is increasing the demand for pet insurance. The launch of innovative mobile applications for pet care is enhancing the growth rate of the market in South Korea. Increasing expenditure on animal health with the growing disposable income is anticipated to boost the pet insurance market growth rate.
The awareness around pet insurance has been growing considerably in Singapore over the last few years, and the Singapore market is expected to grow at a steady pace during the forecast period. Pet lovers focus on reducing the burden of unforeseen veterinary bills, a major driving factor for the Singapore pet insurance market. Insurance companies are coming up with various schemes that favor pet owners to level up the market's growth rate in the coming years.
KEY MARKET PLAYERS:
Companies dominating the APAC pet insurance market profiled in this report are The New India Assurance Company Limited, Oriental Insurance, Rakuten Inc., ipet Insurance, Anicom Insurance Inc., The People's Insurance Company of China, Guide Dogs Pet Insurance Australia, Medibank Private Limited, and Pet Insurance Australia.
The APAC pet insurance market was valued at USD 813.6 million in 2022.
China is one of the potential regional markets in APAC.
The New India Assurance Company Limited, Oriental Insurance, Rakuten Inc., ipet Insurance, Anicom Insurance Inc., The People's Insurance Company of China, Guide Dogs Pet Insurance Australia, Medibank Private Limited, and Pet Insurance Australia are some of the notable companies in the APAC pet insurance market.
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