Pet Insurance Market

Global Pet Insurance Market Size (2022 to 2027)

As per our research analysis report, the size of the global pet insurance market is forecasted to grow to USD 6.65 billion by 2027 from USD 3.62 billion in 2022. This market is predicted to be growing 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.

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.

Some policies cover congenital, hereditary, and chronic conditions like cancer. The cost of diagnosing is 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.

KEY PET INSURANCE MARKET 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 2020.
• Based on the policy type, the dog insurance segment accounted for the leading pet insurance market share in 2020.
• The lifetime cover segment is considered the most lucrative and will continue leading the global pet insurance market throughout the forecast period.
• Geographically, North America led the global market in 2020 and is estimated to continue the lead throughout the forecast period, accounting for the most dominating pet insurance market share. 

MARKET DRIVERS:

Y-O-Y growth in pet adoption and growing pet expenditure primarily boost the pet insurance industry.

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.

The significant 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 the Asia Pacific is also growing with the increasing awareness of pet adoption and insurance. In addition, there is strict regulation for pet insurance in Sweden, propelling European market growth.  

Additionally, growing awareness of pet insurance policy benefits, increasing companion animals, rising pet ownership, and related pet ownership health benefits are further expected to fuel the growth of the pet insurance market. Furthermore, the expanding acceptance of sophisticated and costly treatments, good terms between hospitals and insurance company managers, and growing concern towards animal healthcare contribute generously to the pet insurance market. 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 pet insurance plans, lack of consumer awareness, stringent rules, and government regulations are major factors restraining market growth. In addition, 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 globally, and the same acceleration can be seen in the global pet insurance market. Pets are part of some people's lives; the bond has spiked 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 healthcare. According to thespricepets, it costs between 700 USD to 2000 USD per annum to employees to provide health care to their pets as veterinary bills.

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

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 is to grow exponentially during the forecast period. Cat adoption is increasing in Canada, and dogs are preferred.

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 and accounted for the largest pet insurance market in 2021. 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—this factor 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.

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 United Kingdom, Germany, and France are the largest markets in this region.

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, the Middle East, and Africa shows decent growth during the forecast period. However, 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.

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 made high investments in the pet plan, which will likely boost 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.