 |
| Pet Insurance Market |
The growing affection and bond between pets and owners has resulted in increasing expenditure on pet health insurance. Pet insurance provides coverage for veterinary care and helps pet owners manage treatment costs of their animal companions. Dogs and cats are the most commonly insured pets globally. Pet owners are increasingly willing to spend on preventive care and unplanned veterinary visits for their pets. The pet insurance market allows pet parents to protect their finances from unforeseen medical bills and enjoy peace of mind regarding their pet's wellness.
The global pet insurance market is estimated to be valued at US$ 11.05 Mn in 2024 and is expected to
exhibit a CAGR of 6.5% over the
forecast period from 2024 to 2030. Pet insurance offers financial protection
against expensive veterinary bills. It reimburses pet owners for various
medical costs ranging from annual checkups and routine vaccines to critical
illnesses and surgeries. The growing humanization of pets, rising pet adoption
in developing nations, and increasing pet care expenditure fuel the demand for
pet health coverage plans globally.
Key Takeaways
Key players operating in the pet insurance market include Medibank Private
Limited, Petplan, Oneplan Insurance, Dotsure.co.za (Hollard), Healthy Paws Pet
Insurance LLC, Figo Pet Insurance LLC, Embrace Pet Insurance Agency LLC, Anicom
Holdings Inc., Oriental Insurance Company Ltd., MetLife Services and Solutions
LLC (PetFirst Healthcare LLC), and Crum & Forster Pet Insurance Group
(Hartville Pet Insurance Group), among others.
Pet health insurers witness tremendous opportunities due to the surge in pet
adoption during and post-pandemic. Millennials are increasingly getting pets
instead of children and allocating significant funds towards ensuring their
well-being. The high insured percentage of dogs and cats in North America and
Europe also presents a business avenue for pet insurers in other regions with
low insurance penetration.
Major insurers are expanding their geographical footprint in Asia Pacific and
Latin America through partnerships with local brokers and veterinary clinics.
Customized wellness plans, telehealth for virtual vet visits, and online claim
processes aid global expansion endeavours. Strategic acquisitions further
bolster regional presence.
Market Drivers
Increased spending on pet healthcare is a key factor propelling the pet
insurance market. The pandemic encouraged more pet adoption and ownership,
enhancing willingness to invest in their overall health. Average veterinary
costs continue rising with advances in medical technology and procedures.
Insurance offers a budget-friendly solution to these increasing healthcare
bills.
Educating owners on the long-term benefits of preventive coverage also drives
demand. With insurers promoting vaccination, spaying/neutering and annual
exams, pet parents utilize policies to support wellness visits and catch
illnesses early. This lowers future treatment expenses substantially.
Market Restraints
Low insurance penetration in certain regions poses a hindrance where owners
view coverage as an unnecessary extra cost or remain unaware of availability.
High premiums for exotic pets also discourage some from opting for policies.
Strict underwriting practices to assess pet health risks upfront further shrink
target markets for insurers. However, these restraints are gradually fading
with growing pet humanization globally.
Segment
Analysis
The Pet
Insurance Market Demand is dominated by accident and illness segment.
This segment accounts for over 60% of the total market share as it covers a
wide range of unpredictable risks like injuries due to accidents, surgeries
related to illness and so on. Pet owners opt for this segment the most as it
provides maximum coverage against day to day risks and relieves the owners from
shouldering high veterinary expenses. The other segments include accident only,
other/additional benefits and mortality only.
Global Analysis
Regionally, North America holds the largest share in the pet insurance market
owing to increased pet adoption and expenditure on pet care in countries like
the US and Canada. Growing awareness about pet wellbeing and insurance has
boosted the market growth. Asia Pacific is expected to witness the fastest
growth during the forecast period. Rising disposable incomes, growing urban
population and changing attitudes towards pet ownership in emerging economies
like India and China offer huge growth opportunities. Countries in Europe and
Latin America also demonstrate significant demand due to rising animal welfare
concerns.
0 Comments