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PET INSURANCE MARKET SIZE TO CROSS $13 BILLION BY 2025, GROWING AT A CAGR OF OVER 20% DURING 2020-2025
Pet Insurance Market Size, Share, & Trends Analysis Report By By Pet Type (Dogs, Cats, Others), By Insurance Type (Accidents and Illness, Accident Only), By Distribution (Agency, Bancassurance, Brokers, Direct Writing), By Geography (North America, Europe, APAC, Latin America, Middle East & Africa). Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2025
The global pet insurance market is catching pace in several developed as well as developing countries. The rise in animal ownership has paved the way for several developments in the industry in recent times. Issued under the property insurance category, pet health insurance is in the introductory growth stage in most countries.
The rapid growth in the number of animal owners in the past decade across the globe, especially in the US, Canada, the UK, and Sweden, where dogs and cats are treated as family members, will influence the industry significantly.
The increasing popularity of pet humanization concept is increasing the demand for grooming and care products. Owners, especially millennials, are willing to spend more on their companion animals to ensure a healthy and secure life. The US household spent more than $72 billion in 2018 on pet medical insurance care, which is 4.5% higher than in 2017.
Pet food and related products earned a revenue of more than $45 billion in Europe in 2018. Hence, the increased interest of European pet owners to spend is likely to opt for animal protection cover. Europe constituted the largest pet insurance industry in 2018, which is expected to grow during the forecast period.
The impact of online claims has further boosted the market. Although the online claim process is not new in several developed countries such as the US and the UK, the concept is a major factor for growth in emerging economies such as India. The introduction of AI technology for enquiring term plans, coverage criteria, and other queries is further increasing the popularity of online policy covers, thereby driving the growth.
- More than 65% of the US households have animals, with dogs being the most adopted one. Over 70% of households in West Virginia, Nebraska, Vermont, and Idaho have adopted ones.
- The accident and illness policies segment is expected to witness an incremental growth of over $8 billion by 2025.
- With more than four million pet cats, Australia has one of the highest vendors’ presence, which is likely to drive the country as the forerunner in the Asia Pacific industry.
- Latin American hosts a large pet dog population with Argentina, Mexico, and Brazil constituting 66%, 64%, 58% ownership shares, respectively.
PET INSURANCE MARKET SEGMENTATION
The research report includes detailed segmentation by insurance type, animal type, distribution, and geography.
INSIGHTS BY INSURANCE TYPE
In terms of coverage, the accident and illness insurance segment is the most significant contributor to the market. This segment covers the reimbursement for accidents as well as illness, including hereditary conditions and behavioral challenges among them. While a majority of insurers offer this policy, most plans, ranging from premium to advanced, depend on the age and breed of the animal.
Since the owners are willing to spend on welfare and prevent expensive veterinary services and bills, the segment is expected to increase its reach during the forecast period. The increased willingness to adopt additional coverages for a lifetime by animal owners in North America and Europe is likely to boost the segment further.
Although the accident and illness plans cover a majority of the pet insurance market share, the increasing premium is a hindrance to the segment growth. Hence, the cost-effectiveness offered by accident only plans is a significant factor for the acceptance of this segment. Also, several owners in developing economies such as APAC are likely to opt for accident-only plans.
INSIGHTS BY ANIMAL TYPE
While the industry is in the nascent stage world over, the policies are most commonly adopted for dogs and cats. The popularity of the humanization concept is increasingly affecting the adoption of dogs, thereby leading to wellness concerns. With more than 26% of UK adults adopting a dog, it is the largest industry for dog insurance. The European region is expected to the largest growing market during the forecast period.
Cats are the most preferred after dogs; they are dominant in North America and Europe. There has been growing ownership of cats in recent years. Flexibility and low maintenance are the major reasons for the high adoption of cats. This growth will lead to an increase in cat owners that are more likely to opt for protection covers considering the growing veterinary care bills.
INSIGHTS BY DISTRIBUTION
Insurers are increasing their efforts to reach customers as the conversion ratio of potential customers to loyal ones could be a challenge. Moreover, low awareness of insurance adds to the burden. Effective distribution channels can be a vital enhancer in terms of reach and scope. Agencies are the most preferred medium, as most sales are expected to take place during the forecast period.
Brokers are one of the efficient indirect distribution systems. They specifically target middle class and upper-class animal owners. The share of this segment is growing significantly due to the increased efforts put by brokers. Bancassurance is expected to be the fastest-growing segment during the forecast period due to the low distribution and maintenance costs.
INSIGHTS BY GEOGRAPHY
The global pet insurance market share is concentrated in North America and Europe, with a large number of vendors. With the growing awareness and perception of the benefits acquired from the policies, there is a huge possibility of animal owners getting involved with the concept of insurance in the developing nations of APAC, MEA, and Latin regions.
Europe is the largest market, with over 53% share of the market in 2019. The concept of humanization and the growing preference toward the industry are vital drivers for the market.
Brazil is one of the largest animal populated countries across the globe, which is filled with abundant dogs of large breeds for guarding purposes too. South Africa is the largest market in the MEA region. Middle to high-income consumers are particularly driving the premium pet insurance market in South Africa.
KEY VENDOR ANALYSIS
The pet insurance market is in the growing stage, and it has been penetrating European countries such as Sweden, the UK, and the US. The market consists of a high number of concentrated players, making it highly fragmented with intense competition. In countries such as the US, there are 4–5 major players, which are comprising more than 75% of the total market. However, there are no major players in the UAE and Saudi, where there are immense opportunities for vendors to expand their business.
The market is dominated by companies such as Nationwide, Trupanion, ASPCA, and Petplan. Since the globalization is limited, foreign-owned agencies are lower than dominant domestic providers. This can open opportunities for emerging vendors. Mergers and acquisitions can help pet insurance companies to expand the penetration level and expansion strategies.
PET INSURANCE MARKET REPORT SCOPE
REVENUE USD 13 Billion
Compound Annual Growth Rate (CAGR) 20%
North America, Europe, APAC, Latin America, and Middle East & Africa
US, Canada, UK, Germany, France, Sweden, Netherlands, China, Japan, Australia, South Korea, Brazil, Mexico, and South Africa
The global pet insurance market research report includes in-depth coverage of the industry with growth rates, revenues & forecasts for the following segments:
- Accidents and Illness
- Accident Only
- Direct Writing
- South Korea
- North America
- Middle East & Africa
- South Africa
- Latin America
Key Questions Answered:
- What is the pet insurance market size and forecast?
- Which is the leading segment in the global pet insurance market?
- Which are the key factors driving the demand of the industry?
- Which region is expected to hold the highest pet insurance market share during the forecast period?
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