Global Pet Insurance Market Size, Share, Trends, COVID-19 Impact and Growth Analysis Report - Segmented By Policy Type, Policy (Dog Insurance, Cat Insurance, Rabbit Insurance, Horse Insurance, Exotic Pet Insurance, Others) and Region - Industry Forecast (2024 to 2029)

Published: January, 2024
ID: 7905
Pages: 175

Global Pet Insurance Market Size (2024 to 2029)

As per our research report, the size of the global pet insurance market is forecasted to grow to USD 8.46 billion by 2029 from USD 4.61 billion in 2024. This market is predicted to grow at a CAGR of 12.92% during the forecast period.

Pet insurance is a form of insurance policy for pet owners to cover unexpected costs such as veterinarian care, surgical procedures, injury accidents and prescription pet medicines. Pet insurance policies offer various benefits to pet owners and support them in handling the veterinary expenses of their pets. In the last few years, the costs of veterinary treatment procedures have grown considerably and fueled the need for a pet insurance policy among pet owners. Some of the pet insurance policies have a cover that includes congenital, hereditary, and chronic diseases such as cancer, and 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 and preventive flea treatments, or severe genetic or congenital disorders.

Current Scenario of the Global Pet Insurance Market

The global pet insurance market is anticipated to have a promising future during the forecast period. An increase in the number of pet owners worldwide and the growing willingness of pet owners to invest in comprehensive healthcare coverage for their beloved animals are accelerating the demand for pet insurance policies globally. The service providers of pet insurance policies have been paying attention to bringing innovative policies to address the evolving needs of pet owners that include coverage for preventive care, wellness services, and alternative therapies. Pet insurance policies ensure that pets get the care that they deserve while providing financial security to the pet owners, and this awareness is growing rapidly among pet owners and resulting in increased adoption.

MARKET DRIVERS

The rapidly growing pet adoption worldwide and increasing expenditure on pets are primarily driving the growth of the global pet insurance market.

The number of pet owners has been steadily growing over the last few years. For instance, according to the American Veterinary Medical Association, an expected 44.5% of U.S. households own dogs and 29% of households own cats as of 2022. In the U.S., there were around 76 million dogs and 85.5 million cats in 2018, as per a survey by The American Society for the Prevention of Cruelty to Animals (ASPCA). The major market participants have been continuously putting efforts into increasing awareness levels among pet owners regarding the benefits of pet insurance policies. In the U.S., only 0.7% of pet animals are covered under pet insurance, which indicates that there is significant potential available for the market participants to capture. In European countries, there is a rise in pet insurance penetration, which is another notable change that favors the growth of the market. Pet insurance in the Asia-Pacific is gaining prominence with the increasing awareness of pet adoption. Countries such as Sweden have strict regulations for pet insurance, which favors the pet insurance market in Europe. In 1924, the first animal insurance policy was written by Sweden, which is the first of its kind, and it focused on horses and livestock during policy making.

An increase in awareness regarding the benefits of pet insurance policies among pet owners has been gradually taking off, which is resulting in the increasing adoption of pet insurance policies and contributing to the global market growth considerably. In addition, the growing number of companion animals, rising acceptance of sophisticated and costly treatments and favorable terms between veterinary hospitals and service providers of pet insurance, and growing concern towards veterinary healthcare is further supporting the growth of the pet insurance market. Furthermore, the rising scale of veterinary hospitals and the potential of untapped markets with meager penetration rates are fuelling the growth rate of the global pet insurance market. Furthermore, the rise in the prevalence of zoonotic diseases among companion animals is also boosting the growth of the pet insurance market.

The introduction of novel pet insurance policies and concessions by the key players to promote awareness of pet insurance and accelerate the adoption of pet insurance is favoring global market growth. An increase in the number of companies in the pet insurance market is also augmenting the market growth. The presence of cutthroat competition among the market players led to the introduction of various new pet policy schemes such as multi-pet insurance policies, in which a single policy can be used for multiple pet enrolments. To retain customers and have a sustainable market share, several companies have been offering concessions and offers in their product offerings to the customers. Such type of strategic initiatives from the market participants is predicted to showcase a positive impact on the global pet insurance market growth.

MARKET RESTRAINTS

High costs associated with pet insurance plans, stringent rules, and government regulations are majorly restraining the growth of the pet insurance market.

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. The poor awareness of pet insurance policies for pet owners in developing countries due to the impact of less knowledge, less disposable income, fewer promotional activities by the companies and low animal healthcare facilities is further impeding the growth of the pet insurance market.

Impact Of COVID-19 On the Global Pet Insurance Market

The pet insurance market has seen a significant impact of the COVID-19 pandemic on market growth and development. Several challenges are put forth by COVID-19 for animal health companies, pet owners, veterinarians, and hospitals. By deploying the supportive, available measures, the industry soon began to respond to the pandemic to ensure access to veterinary health care and services. The pandemic has created an awareness among pet owners about the importance of having insurance coverage to reduce financial burden and risk. In the U.K., there was a boom in the market in 2020, as per the Petplan survey. In this survey, about 49% of the respondents have purchased pet insurance for the first time amidst the pandemic outbreak.

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

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 of Investment Opportunities

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key Market Players

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.

 

SEGMENTAL ANALYSIS

Global Pet Insurance Market Analysis By Policy

Based on policy, the dog insurance segment was the largest segment in the global pet insurance market and captured a share of 51.8% of the global market in 2023 and is anticipated to register the fastest CAGR during the forecast period. The growth of the dog segment is majorly attributed to the increasing prevalence of dog ownership. Owing a dog as a pet is not only for bonding purposes but also is representing a status symbol in the present world and considering dogs as family members in several countries. The rising emphasis on pet health by pet owners and the high costs associated with veterinary care is boosting the growth of the dog insurance market. In several countries worldwide, there is an increase in the adoption of dogs, resulting in the promising growth of the dog insurance segment. In Japan, there are around 11 million dogs as pets and the number is expected to increase at a high rate in the coming years, as per the report by the Japan Pet Food Association.

The cat segment was the second biggest segment in the global pet insurance market and is anticipated to grow at a CAGR of 7.78% during the forecast period. The growth of the cat insurance segment is primarily driven by the increase in the adoption of cats across several countries, the availability of comprehensive insurance coverage tailored to the specific healthcare needs of cats, and the rising incidence of health issues in cats. For instance, as per the reports of The American Society for the Prevention of Cruelty to Animals (ASPCA), there were around 85.5 million cats in the U.S. in 2018.

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.

Global Pet Insurance Market Analysis By Policy Type

Based on policy type, the lifetime cover segment is estimated to account for the largest share of the global pet insurance market in 2023 and is expected to grow at a prominent CAGR during the forecast period owing to 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. In the global pet insurance market, the illness cover sub-segment of the lifetime segment is expected to hold a promising share of the global market during the forecast period. The features of flexible coverage for illness, injuries and accidents, hospitalization costs, surgeries, medications, and several others are driving the segment's growth. The illness coverage of a pet insurance policy offers several claims with maximum benefits, which is further boosting its adoption of contributing to the segmental expansion.

REGIONAL ANALYSIS

The North American pet insurance market dominated with pet insurance market worldwide with a share of 41.8% of the worldwide market in 2023, followed by Europe. The domination of the North American market is estimated to continue throughout the forecast period owing to the growing population having a deep emotional bond with their pets, the availability of advanced veterinary treatments and procedures, and the rising cost of veterinary care. The U.S. had 77% of the North American market share in 2023 and is expected to grow at a prominent CAGR during the forecast period. As per the 2023 report of the North American Pet Health Insurance Association (NAPHIA), a total of 5.36 million pets are insured across North America. The rise in the penetration rate of pet insurance in the U.S. and the presence of several notable service providers of pet insurance policies are majorly propelling the growth of the U.S. market. Canada is expected to exhibit a notable CAGR during the forecast period owing to the recent spike in the adoption rate of pets.  The growing adoption of exotic pets and rising awareness of the benefits associated with pet insurance coverage are boosting the global market growth.

Europe gained the second most dominant share of the global pet insurance market and occupied 26.4% of the global market in 2023. Factors such as favorable regulatory frameworks, growing awareness about preventive healthcare for pets and the availability of a wide range of insurance products tailored to the needs of pet owners are propelling the growth of the pet insurance market in Europe. As per the Veterinary School & Pet Food Research Institute, 23% of pets in the UK and 30% in Sweden have had insurance since 2017. The presence of several market participants and the rising affordability of pet insurance policies are further contributing to the growth of the European market. In Europe, the service provides of pet insurance policies are also offering coverage for pet healthcare services available in foreign countries to attract a broader clientele. An increase in the number of initiatives by the governments of European countries to boost pet adoption is supporting the European market growth. Ever since the first origin of the pet insurance concept in Sweden, there has been a greater proportion of pet insurance usage by owners. Furthermore, there is growth in the number of startups in the European market entering this pet insurance market, which augments the regional market growth.

The pet insurance market in the Asia-Pacific region is predicted to register a steady CAGR during the forecast period owing to the increasing adoption of pets, growing disposable income and the presence of developing countries. The penetration rate of pet insurance is low in the Asia-Pacific region compared to North America and Europe and offering potential for the global market participants to enter and tap the potential. China, Japan, and India are the most significant contributors to market growth in the Asia-Pacific region. According to 2019 International Monetary Fund data, per capita income for the Asia-Pacific region in 2019 is USD 7.35 thousand and to reach USD 10.18 thousand by 2024. An increase in concern among pet owners for the health of their pets is contributing to the regional market growth. There is a transition in many families around the world in treating pets as their family members. In the Asia-Pacific region, Japan and Australia are the largest markets for pet insurance and are anticipated to occupy the leading share of the regional market during the forecast period.

The pet insurance market in Latin America is expected to grow at a steady CAGR during the forecast period. The changing perception of pets as family members can be noticed in the Latin Americna region, which is driving the growth of the Latin American market. Brazil and Mexico are leading markets for pet insurance in the Latin American region. 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 witness a moderate CAGR in the global market during the forecast period.

KEY PLAYERS IN THE GLOBAL PET INSURANCE MARKET

Companies such as 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 are playing a leading role in the global pet insurance market.

RECENT HAPPENINGS IN THE MARKET

  • In 2022, To enhance the claim management process, RSA Insurance Group has partnered with Expert.ai. This partnership will allow RSA to increase its reach of intelligent document processing and widen the tranche of pet insurance claims to enhance the company's operating capability.
  • In 2022, An acquisition of the German pet insurance provider Agila by JAB Holdings from Wertgarantie Group will increase its global expansion into the 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 Warburg's resources and capital. 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 and video 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.

DETAILED SEGMENTATION OF THE GLOBAL PET INSURANCE MARKET INCLUDED IN THIS REPORT

This research report on the global pet insurance market has been segmented & sub-segmented based on policy, policy type, and region.

By Policy

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

By Policy Type

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

By Region

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

Please wait. . . . Your request is being processed

Frequently Asked Questions

How much is the global pet insurance market going to be worth by 2028?

As per our research report, the global pet insurance market size is predicted to be worth USD 7.50 billion by 2028.

Which segment by policy is dominating the pet insurance market?

Based on the policy, the dog insurance policy segment led the pet insurance market in 2021 and the domination projected to be continuing throughout the forecast period.

Which region accounted for the largest share of the global pet insurance market in 2022?

Geographically, the North American regional market led the pet insurance market in 2022.

Which are the major market participants in the pet insurance market?

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 are some of the notable companies in the global pet insurance market.

Related Reports

Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500

Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM

Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!

REACH OUT TO US

Call us on: +1 888 702 9696 (U.S Toll Free)

Write to us: [email protected]

Click for Request Sample