Pet Insurance Market

Global Pet Insurance Market Size (2023 to 2028)

As per our research analysis report, the size of the global pet insurance market is forecasted to grow to USD 7.50 billion by 2028 from USD 4.08 billion in 2023. This market is predicted to grow at a CAGR of 12.92% during the forecast period. Increasing expenditure on pets worldwide is majorly driving the growth of the pet insurance market.

 Global Pet Insurance Market Share Insights:

• Nationwide Pet Insurance, Anicom Holdings Inc., Embrace Pet Insurance Agency, LLC, Figo Pet Insurance LLC, Hartville Group, and Healthy Paws Pet Insurance, LLC are some of the top companies operating in the global pet insurance market and account for a significant pet insurance market share in 2022.
• Based on the policy type, the dog insurance segment accounted for the leading pet insurance market share in 2022.
• The lifetime cover segment is the most lucrative and will continue leading the global pet insurance market throughout the forecast period.
• Geographically, North America led the global market in 2021 and is estimated to continue the lead throughout the forecast period, accounting for the most dominating pet insurance market share. 

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 beneficial pet owners' policies as there is an increased cost for veterinary treatment procedures. In addition, some policies cover congenital, hereditary, and chronic conditions like cancer. Diagnosing costs are the same as CAT scanning, ultrasound imaging, veterinary examination fees, prescription medication, MRI testing, and non-routine dental therapy. In contrast, some pet insurance policies do not cover regular dental cleaning, infection, preventive flea treatments, or severe genetic or congenital disorders. So, it is a type of property and casualty insurance that provides the owner with coverage after the pet has been provided the necessary care. Then, the owner submits a claim to the insurance company.

MARKET DRIVERS:

The growing pet adoption in multiple countries and rising pet expenditure propel the pet insurance market growth.

According to the statistics published by statista.com, an estimated 470 million dog pets and 370 million cat pets were there worldwide in 2018. According to the North American Pet Insurance Health Association (NAPHIA), North America had a 17% 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+% development 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, of which cats and dogs occupy most of the share. A whopping amount of 99 billion USD is being spent by Americans each year on pets and pet-related products, including pet insurance.

The rising awareness among pet owners regarding the benefits of pet insurance policies is further boosting the pet insurance market growth.

Recently, many pet owners have realized the risks of owning pets. Pet owners must spend considerable amounts when their pets have accidents and illnesses. To encounter this issue, many pet owners are showing interest in insuring their pets as it can provide financial protection and peace of mind to the pet owners. In addition, the growing number of pet insurance policies and accessibility to compare various pet insurance policies online to pet owners are further contributing to the growth of the pet insurance market.

The growing veterinary costs are another major factor promoting the growth rate of the pet insurance market.

The costs associated with pet health and maintenance are growing significantly with each year passing. It costs considerable to pet owners when their pets diagnose with various diseases, and these costs would be severely high when diagnosed with life-threatening diseases such as cancer. Pet owners need effective solutions to manage these costs and ensure that pets can be one of the best options available. Some of the available pet insurance policies can help pet owners significantly in the management of the costs of their pets.

The notable insurance providers in the market are educating customers about pet insurance policy benefits. In the US, only 0.7% of pet animals are covered under pet insurance, offering excellent scope for growth and investment opportunities in North America. Pet insurance in Asia is also growing with the increasing awareness of pet adoption and insurance. In addition, there is strict regulation for pet insurance in Sweden, propelling the market growth.

MARKET RESTRAINTS:

However, poor awareness levels of pet insurance in some countries hamper the overall growth rate of the pet insurance market. In addition, the high pet insurance costs are another notable factor limiting the adoption and market growth rate. As a result, the limitations of some pet insurance policies are anticipated to impede market growth. Furthermore, the limited availability of pet insurance policies and unfavorable reimbursement rates are expected to have a negative impact on the market growth.

Impact of COVID-19 on the global pet insurance market:

The COVID-19 pandemic has had a mixed impact on the pet insurance market. During the COVID-19 pandemic, the adoption of pets has grown significantly. As per the statistics published by the American Pet Products Association, an estimated 11.38 million U.S. households have adopted pets in the United States. During the COVID-19 pandemic, many people wanted the companionship that pets provide. This growing adoption of pets has resulted in an increasing demand for pet insurance. In addition, during the COVID-19 pandemic, the awareness levels of pet owners regarding the management costs of pets and unexpected medical expenses of pets have increased significantly, which has further contributed to the pet insurance market growth. The adoption of telemedicine and virtual veterinary consultations that were part of some of the pet insurance policies have also increased notably during the pandemic and has helped pet owners to seek effective veterinary care from the comfort of home. This has further favored the growth of the pet insurance market during the COVID-19 pandemic.

On the other hand, many pet owners have faced significant economic challenges during the COVID-19 pandemic, and insurance providers have experienced more claims as more pets have required medical care. Likewise, the pet insurance market has experienced positive and negative impacts from the COVID-19 pandemic. However, considering the decreasing impact of COVID-19, the global pet insurance market is expected to witness a healthy CAGR in the coming years. 

REPORT COVERAGE:

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:

• Cat Insurance
• Dog Insurance
• Horse Insurance
• Rabbit Insurance
• Exotic Pet Insurance
• Others

Based on policy, the dog Insurance segment was the largest segment in the global pet insurance market in 2022 and is anticipated to register the fastest CAGR during the forecast period. 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 will grow exponentially during the forecast period owing to the growing adoption rate of cats from countries such as the United States and Canada. Therefore, the cat segment is anticipated to account for a considerable share of the pet insurance market during the forecast period.

The exotic pet insurance segment is 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:

• Lifetime Cover
  • Accidental Cover
  • Illness Cover
• Non-lifetime Cover
  • Accidental Cover
  • Illness Cover
• Others

Based on policy type, the lifetime cover segment includes accidental and illness cover, accounting for the largest pet insurance market in 2022. In addition, the increasing number of pet owners subscribing to insurance plans for very young pets compared to those 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:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

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, which is 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 extensively large pet population globally, with 69,929,000 dogs and 74,059,000 cats. On the other hand, the Canadian pet insurance market is expected to register steady growth during the forecast period owing to the recent spike in the adoption rate of pets in Canada. 

Europe gained a dominant share of 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. Large corporations and affordable insurance policies continue to drive growth in the region. Insurers also offer coverage for pet healthcare 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. The UK pet insurance market is one of the largest markets in Europe, followed by Germany and France.

The Pet Insurance Market in the Asia-Pacific region will 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 further drive the market's growth. 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 pet insurance market in Latin America is expected to grow significantly during the forecast period. However, the market in Latin America 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.

The MEA pet insurance market is anticipated to have a sluggish share in the global market during the forecast period.

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.

RECENT HAPPENINGS IN THE GLOBAL PET INSURANCE MARKET:

• In 2019, Warburg Pincus Company completed the acquisition of the pet plan insurance corporation. With this acquisition, the pet plan has gained access to the resources and capital of Warburg. The equity giant has invested highly in the pet plan, likely boosting its operations, innovative novel products, and better customer experience.
• In Oct 2019, the embrace pet insurance company joined hands with the paw support company to provide real-time access for pet pros to policyholders. The pet pros offer guidelines to pet owners regarding the practical usage of pet healthcare resources. In addition, paw support offers 24/7 online services like email, video chat, and online chat to help pet owners with various pet-related queries.
• In 2018, Agria pet insurance company joined with vetstream to launch a platform for e-learning called agria pet insurance vet academy. The e-learning platform offers its customers free of cost access to various business management courses. With the help of this collaboration, agria customers can enhance their skills through various learning activities. 
• In 2016, Pet Health Inc. acquired pets plus us from the royal and sun group. With this acquisition, pet health Inc. will expand its operations and offer enhanced care to animals and improved care to customers with the help of customer service provided by pets plus us.