Rise in animal ownership, and increased spending on pet and pet products are the major drivers boosting the pet medical insurance market growth
Arizton’s recent market research report on the global Pet Insurance Market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The study includes insights on segmentation by insurance type (accident & illness and accident only), animal type (dogs, cats, and others), distribution (agency, broker, bancassurance, and direct writing), and geography (APAC, Europe, Latin America, MEA, and North America).
The global pet insurance market is expected to grow at a CAGR of over 20% during the period 2019−2025.
Opting for a pet medical insurance scheme is more an emotional decision than pragmatic one. The first pet medical insurance policy was introduced in Sweden in 1890, which focused on horses and livestock. However, the first dog policy was realized in Sweden in 1924. Similarly, the first pet medical insurance in the US was provided by Veterinary Pet Insurance in 1982. The penetration rate of the pet medical insurance market is only 1%, whereas it was 57% and 30% in Sweden and the UK, respectively, in 2018.
Vendors can focus on providing insurance specialized for medium-sized dogs such as Labradors and retrievers, where the monthly premium ranges between $50 and $65.
Similarly, the insurers in Europe and APAC focus on small dog breeds of Shih Tzu, Pug, Shiba Inu, and Rottweiler for an increased premium generation where the monthly premium of the pug is around $50. Pugs are the preferred ones in Western Europe.
The leading drivers and trends driving the growth of the global pet medical insurance market are discussed below:
Rise in Animal Ownership to influence the Market
In countries such as the US, the UK, Canada, and Sweden, there has a rapid growth in the number of animal owners in the last decade. In 2018, more than 65% of the households in the US have domestic animals, with dogs being the most adopted, cats contribute to more than 25%. More than 15% of the households were having exotic pets such as rabbits, ferrets, turtles, snakes, and reptiles in 2018. The rise in number of animal owners can substantially drive them to be a potential target that can avail insurance for their pets owing to safety and financial leverages. The rising number of millennials and generation Z is contributing to the growth in animal ownership since they are more attracted and concerned about the welfare of the animals.
Increased Spending on Pet and Pet Products
Treating animals as part of the family has led to the increased popularity of the pet care industry care. Animal owners, especially millennials, are willing to spend more on their pets to ensure a healthy and secure life. The US household spent more than $72 billion in 2018 in their animal welfare and wellbeing, which was a 4.5% increase to 2017. Similarly, the pet food and related products market earned a revenue of more than $45 billion in 2018 across Europe. The market grew at a CAGR of over 2% in 2019.
High Popularity of Pet Humanization Concept
The growing pet humanization is driving the sale in pet medical insurance market. Normal humanizers and extreme humanizers both tend to spend on insurance products and the major reason behind the recent growth of the industry. The majority of owners fall under these categories and are potential consumers for insurance companies. Vendors can focus on anti-humanizers to penetrate further into the pet medical insurance market during the forecast period. Hence, as the owners are increasingly treating animals as families, vendors are seizing this opportunity to commercialize this trend into a vast range of products and services. The growing trend of humanization is driving the sale of pet related industries, especially pet medical insurance.
Nationwide, Trupanion, Healthy Paws Pet Insurance, PetPlan, Agri are identified as prominent vendors in the global pet medical insurance market.
The complete overview of the latest market research report by Arizton is now available.
The report offers a detailed study of major trends, drivers, challenges and provides market sizing and forecast for major geographical regions and key countries.
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