Covid-19 Impact & Market Status
The global Pet Insurance market size is expected to reach close to $32.7 Billion by 2029 with an annualized growth rate of 16.7% through the projected period.
The COVID-19 epidemic presented a variety of challenges for the companion animal industry, which consists of pet owners, veterinary clinics, veterinarians, and animal health businesses. However, the industry began to take precautions against the pandemic right away in order to ensure availability to veterinary treatment and other services. The challenges brought on by the epidemic also raised awareness among pet owners of the advantages of getting a pet insurance coverage to reduce financial risk. Pet ownership increased in 2020, according to a poll done by Petplan, a market leader in the U.K. In total, almost 26% of pet owners in the U.K. purchased a pet during the COVID-19 epidemic, with approximately 47% of respondents purchasing pets for the first time.
The segment expected to generate the most revenue is dogs
Cats and dogs make up the two main segments of the global pet insurance industry. In 2021, the dog segment had the biggest market share; it is projected that it would hold that position throughout the forecast. The expanding adoption of dogs around the world is to blame for the increasing segmental growth. For instance, 90.5 million families in the U.S. will own a pet in 2021, with 69 million (more than 76%) of those households owning a dog, according to the American Pet Products Association (APPA). Likewise, Europe's greatest pet dog populations are found in nations like the United Kingdom, Poland, and France, which will persuade more pet owners to choose different policy coverages. Therefore, it is anticipated that counties with a large dog population relative to other companion animals will present a lucrative opportunity for the growth of the pet insurance market.
The direct sales segment is predicted to be one of the most profitable sectors.
With a market share of nearly 34.0% in 2021, the direct sales segment led the industry. This is because major pet insurance providers frequently employ direct sales techniques. For instance, Deutsche Familienversicherung AG reported that 87.3% of its new business during HY2020 came from direct sales. Liekwise, the business recorded a 21.4% rise in online sales over HY 2019. Another significant competitor in the market, Petplan, revealed that in 2020, direct sales contributed for around 61% of its Personal Lines insurance income.
The Accident Only segment is anticipated to be among the most profitable segments.
With a market share of 84.0% in 2021, the accident and illness segment dominated the industry. In the future years, the fastest CAGR is projected. The main forces behind this expansion are the rise in the number of companion animals, the high expenses of veterinary care and diagnostics, and the growing awareness of pet insurance. Accident and illness coverage is most typically offered by pet insurance carriers. These cover a variety of things, such as prescription medications, medical tests, short-term and long-term illnesses, and more.
One of the lucrative segments is expected to be North America
By 2029, it is expected that the North American pet insurance market would exceed USD 5.6 billion. Increased pet adoption rates and increased consumer awareness of various cutting-edge pet insurance plans may be contributing factors to the market expansion in North America. The rising trend of pet adoption in the US is to blame for this growth. Additionally, the regional pet insurance sector is anticipated to grow as veterinary healthcare infrastructure is developed and veterinary health awareness rises.
Several factors that are propelling this market include the rising pet population, the acceptance of pet insurance in untapped markets, rising veterinary care expenses, initiatives from major corporations, and the humanization of pets.
The adoption of pets as companions is predicted to increase, driving market expansion. The demand for pet insurance is rising as awareness of the need for animal healthcare rises.
Pet owners can purchase pet insurance in order to partially or fully defray the cost of medical care for an insured pet's illness or accident. Some insurance plans additionally provide coverage in the event that the pet dies or is stolen or misplaced. Additionally, the demand for the global pet insurance market is growing as a result of increased veterinary medical expenses and the use of pricy medical procedures and medications.
Pet insurance enables you to provide your dog with the greatest healthcare while saving money on pricey medical procedures and hospitalization. It also gives you a larger range of treatment options for dental problems, parasite-borne illnesses, cataracts, fractures, and pregnancy difficulties. Some pet insurance plans also cover theft or loss of the animal, international travel, and third-party liabilities in the event that your animal causes someone else's property damage or personal injury. The global pet insurance market is expected to increase at a CAGR of 11.5% over the projected period, reaching USD 39.6 billion by 2030. (2022–2030).
Major market drivers include the expanding popularity of pets and the incidence of diseases associated to cats and dogs. In addition, it is projected that the market will develop in the near future due to the rising demand for pet insurance, which will help minimize the out-of-pocket costs associated with significant medical concerns including cancer and accidental injuries. Additionally, it is thought that there would be a rise in the need for veterinary hospitals, which is thought to raise demand for pet insurance.
The adoption of pets as companions is predicted to increase, driving market expansion. The market for pet insurance is developing as a result of the growing concern regarding the heath of animals. Pets are increasingly embraced as companions and are frequently seen as part of the family as the pet ownership trend shifts from pet owners to pet parents. Likewise, it is projected that the industry environment would significantly improve due to the increased knowledge of pet insurance programs as a consequence of a significant effort by insurance providers.
The growth of the pet insurance industry may be hampered by the lack of awareness of pet insurance plans and services in emerging nations. When compared to wealthy nations, the disposable income per capita in developing nations is comparatively low. Lack of information regarding several infectious and zoonotic diseases also has an impact on market rates. In developing nations where pet insurance is not prioritized, there are also fewer private veterinarians and veterinary facilities.
The following companies have been identified as the major players in the analysis of the global pet insurance market: Insurance Agency, Embrace Pet LLC, Hartville Group, Figo Pet Insurance LLC, Nationwide, PetFirst, Pet Assure, Ipet Insurance, LLC, Royal & Sun Alliance, Pets Best Insurance Services, and Trupanion. Market participants employ a variety of strategic initiatives, such as the introduction of new policies, alliances and collaborations, mergers and acquisitions, and geographical expansion, in an effort to get a greater market share. For instance, in June 2020, Trupanion and Vetter Software, a supplier of technology-based animal healthcare solutions, agreed to cooperation.
Latest Innovations in the Global Pet Insurance Market: a Snapshot
- More than 20 million Chewy customers will be able to choose from a distinctive range of pet wellness and health insurance policies beginning in December 2021 thanks to a partnership between Trupanion and Chewy. To provide customers with preventive care, wellness programmes, and comprehensive insurance coverage for illness, accidents, and chronic problems. This cooperation enhanced the services and product offerings for the healthcare industry.
Pet Insurance Market Scope
|Revenue forecast in 2029
|US$ 32.7 Billion
|CAGR of 16.7% during 2021-2029
|Animal Type, Policy Coverage, Sales Channel, Region
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Trupanion, Inc.,Deutsche Familienversicherung AG (DFV),Petplan (Allianz),Animal Friends Insurance Services Limited,Figo Pet Insurance, LLC,Direct Line,Nationwide Mutual Insurance Company,Embrace Pet Insurance Agency, LLC,Anicom Insurance
Key Segments of the Global Pet Insurance Market
Animal Type Overview, (USD Billion)
Policy Coverage Overview, (USD Billion)
- Accident and Illness
- Accident Only
Sales Channel Overview, (USD Billion)
Regional Overview, (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa