As per our research analysis report, the size of the global pet insurance market is forecasted to grow USD 6.65 billion by2026 from USD 3.62 billion in 2021. This market is predicted to be growing at a CAGR of 12.92% during the forecast period. Increasing expenditure on pets around the world is majorly driving the pet insurance industry growth.
Pet insurance is a form of specialist property and casualty insurance plan obtained by pet owners to cover unexpected costs such as veterinarian care, surgical procedures, injury accidents, and prescription pet medicines. Pet Insurance offers various beneficial pet owners policies as there is an increased cost for veterinary treatment procedures.
Some policies cover congenital, hereditary, and chronic conditions like cancer, and the cost of diagnosing the same as CAT scanning, ultrasound imaging, veterinary examination fees, prescription medication, MRI testing, and non-routine dental therapy. As contrast, some pet insurance policies do not cover regular dental cleaning, infection, and preventive flea treatments, or genetic severe or congenital disorders. So, it is a type of property and casualty insurance that provides the owner with coverage after the pet has provided the necessary care. The owner submits a claim to the insurance company.
KEY PET INSURANCE MARKET INSIGHTS:
MARKET DRIVERS:
Y-O-Y growth in pet adoption and growing expenditure on pets are primarily boosting the pet insurance industry.
According to the North American Pet Insurance Health Association (NAPHIA), North America had a 17% of growth in pets insured from 2017 to 2018. Over the same period, the United States had a double-digit growth with over 2 million pets and Canada with 10+% growth with over 0.27 million pets. As per a Pet Population report published by the Pet Food Manufacturers Association, around 12m households in the United Kingdom have pets in which Cats and Dogs occupy most of the share.
The significant insurance providers in the market are educating the customers about the pet insurance policy benefits. In the US, only 0.7% of pet animals are covered under pet insurances, offering excellent scope for growth and opportunities for investments in North America. Pet insurance in the Asia Pacific is also growing with the increasing awareness of pet adoption and insurance. There is strict regulation for pet insurance in Sweden, which is propelling the market growth in Europe.
Additionally, growing awareness of pet insurance policies benefits, an increasing number of companion animals, rising pet ownership, and related pet ownership health benefits are further expected to fuel the pet insurance market growth. The expanding acceptance of sophisticated and costly treatments, good terms between hospitals and insurance company managers, growing concern towards animal healthcare also contribute well to the pet insurance industry. Furthermore, the rising scale of veterinary hospitals and mostly untapped markets with meager penetration rates are fuelling the market growth.
MARKET RESTRAINTS:
High costs associated with the pet insurance plans, lack of consumer awareness, stringent rules, and government regulations are major factors restraining market growth. Pet insurance has very little awareness in regions such as Asia-Pacific, the Middle East, and Africa, which is estimated to slow down the global growth rate of the market.
Impact of COVID-19 on the global pet insurance market:
The COVID-19 pandemic has created a spike in the adoption of pets across the globe, and the same acceleration can be seen in the global pet insurance market. Pets are part of some people’s lives where the bond has spiked in this time as everyone is working from home. Around 45% of people in emerging countries spend the same or more on animal healthcare than on their own healthcare. According to thespricepets, it costs between 700 USD to 2000 USD per annum to an employee to provide health care to their pets as veterinary bills.
REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2020 to 2026 |
|
Base Year |
2020 |
|
Forecast Period |
2021 to 2026 |
|
Segments Covered |
By Policy, Policy Type, and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
This research report on the global pet insurance market has been segmented & sub-segmented based on policy, policy type, and region.
Pet Insurance Market – By Policy:
The Dog Insurance category accounts for the highest growth during the forecast period among the mentioned policy segments. The development of this segment is attributed to the increasing prevalence of dog ownership; the significant share of the dog insurance segment is not only for bonding purposes but also as a status symbol. Even the growing importance of animal health and the high cost of veterinary care drive market growth.
The cat segment to grow exponentially during the forecast period. Cat adoption is increasing in Canada, and dogs are preferred.
The exotic pet insurance segment to be the fastest-growing segment justified by the increasing number of unusual pet premiums, fuelled by increased availability and ease of purchase of exotic pets.
Pet Insurance Market – By Policy Type:
Based on policy type, the Lifetime cover segment majorly includes Accidental and Illness cover and has accounted for the largest share of the market. The increasing number of pet owners subscribing to insurance plans for very young pets compared to those pet owners who have grown up or old pets and generally opt for non-lifetime coverage plans helps this segment lead the pet insurance market.
Pet Insurance Market – By Region:
Geographically, the North American Pet Insurance Market region currently accounts for the majority share of the global pet insurance market, followed by Europe. Now, over 65% of Americans have pets at home. This factor in boosting the growth of the North American pet insurance market over the forecast period. The United States has been and continues to be the major contributor to the robust market share of North America in the global market. The United States has an extensive large pet population globally, with 69,929,000 dogs and 74,059,000 cats.
Europe gained a dominant share in the pet insurance market in 2018. As per Veterinary School & Pet Food Research Institute, 23% of pets in the UK and 30% in Sweden have had insurance since 2017. The presence of large corporations and affordable insurance policies continue to drive growth in the region. Insurers also offer coverage for pet health care services available in foreign countries to attract a broader clientele. The European pet insurance market focused on implementing 1890s insurance policies on horses and other farm animals in Sweden.
The high rate of market growth and the growing adoption of pets in Europe's region allow it to capture the second position in the global pet insurance market. United Kingdom, Germany, and France are the largest markets in this region.
The Pet Insurance Market in the Asia-Pacific region to enjoy favorable growth during the forecast period. Due to the increasing acceptance of pets and the region's economic development. Also, veterinary health awareness and the growing pet population are further drivers of the market. China, Japan, and India are the most significant contributors to market growth in this region. According to 2019 International Monetary Fund data, per capita income for the Asia-Pacific region in 2019 is US $ 7.35 thousand and to reach US $ 10.18 thousand by 2024.
The market for pet insurance in Latin America and the Middle East and Africa shows decent growth during the forecast period. The market in these regions is hindered by the low penetration of pet insurance policies due to the market remaining untapped by significant market players and lower awareness about pet insurance policies.
KEY MARKET PLAYERS:
Notable insurance providers leading the global pet insurance market profiled in this report are Petplan Pet Insurance, Embrace Pet Insurance Agency, Royal & Sun Alliance (RSA), Pethealth Inc., Agria Pet Insurance, Pet first Healthcare, Nationwide Pet Insurance, PetSure Pty Ltd., Petsecure Pet Health Insurance and Hartville Group.
NOTABLE HAPPENINGS IN THE GLOBAL PET INSURANCE MARKET IN THE RECENT PAST:
1. Introduction
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.1 Introduction
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3. Overview
3.1 Executive Summary
3.2 Key Inferences
3.3 Epidemology
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1 Policy
5.1.1 Introduction
5.1.2 Dog Insurace
5.1.3 Cat Insurance
5.1.4 Rabbit Insurance
5.1.5 Horse Insurance
5.1.6 Exotic Pet Insurance
5.1.7 Others
5.1.8 Y-o-Y Growth Analysis, By Policy
5.1.9 Market Attractiveness Analysis, By Policy
5.1.10 Market Share Analysis, By Policy
5.2 Policy Type
5.2.1 Introduction
5.2.2 Lifetime Cover
5.2.2.1 Accident Cover
5.2.2.2 Illness Cover
5.2.3 Non-lifetime Cover
5.2.3.1 Accident Cover
5.2.3.2 Illness Cover
5.2.4 Others
5.2.5 Y-o-Y Growth Analysis, By Policy Type
5.2.6 Market Attractiveness Analysis, By Policy Type
5.2.7 Market Share Analysis, By Policy Type
6. Geographical Analysis
6.1 Introduction
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
6.1.3.1 By Geographical Area
6.1.3.2 By Policy
6.1.3.3 By Policy Type
6.1.4 Market Attractiveness Analysis
6.1.4.1 By Geographical Area
6.1.4.2 By Policy
6.1.4.3 By Policy Type
6.1.5 Market Share Analysis
6.1.5.1 By Geographical Area
6.1.5.2 By Policy
6.1.5.3 By Policy Type
6.2 North America
6.1.1 Introduction
6.1.2 United States
6.1.3 Canada
6.3 Europe
6.2.1 Introduction
6.2.2 U.K
6.2.3 Spain
6.2.4 Germany
6.2.5 Italy
6.2.6 France
6.4 Asia-Pacific
6.3.1 Introduction
6.3.2 China
6.3.3 India
6.3.4 Japan
6.3.5 Australia
6.3.6 South Korea
6.5 Latin America
6.4.1 Introduction
6.4.2 Brazil
6.4.3 Argentina
6.4.4 Mexico
6.4.5 Rest of Latin America
6.6 Middle East & Africa
6.5.1 Introduction
6.5.2 Middle-East
6.5.3 Africa
7. Strategic Analysis
7.1 PESTLE analysis
7.1.1 Political
7.1.2 Economic
7.1.3 Social
7.1.4 Technological
7.1.5 Legal
7.1.6 Environmental
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1 Petplan Pet Insurance
8.1.1 Overview
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 Embrace Pet Insurance Agency
8.3 Royal & Sun Alliance (RSA)
8.4 Pethealth Inc.
8.5 Agria Pet Insurance
8.6 Petfirst Healthcare
8.7 Nationwide Pet Insurance
8.8 PetSure Pty Ltd.
8.9 Petsecure Pet Health Insurance
8.10 Hartville Group
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10. Market Outlook and Investment Opportunities
Appendix
a) List of Tables
b) List of Figures
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