Pet Insurance Market Size By Policy Coverage (Accident Only, Accident & Illness), By Animal (Cat, Dog), By Provider (Public Private), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Covid-19 Impact Analysis, Competitive Market Share & Forecast, 2022 - 2030

Industry Overview

Pet Insurance Market size accounted for over USD 7.9 billion in 2021 and is estimated to grow at 7.1% CAGR between 2022 and 2030. Growing demand for pet insurance and increasing veterinary expenditure is anticipated to be a significant factor in driving the market expansion. Pet insurance policy covers veterinary costs incurred for the treatment of a pet suffering from a disease or an injury.
 

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Pet insurance is commonly selected by owners to reduce the burden of costs associated with veterinary services. Such schemes are offered by several public and private service providers for different companion animals such as dogs and cats, among others. Also, various innovative pet insurance coverage policies for multiple pets are offered by the services providers to attract a larger customer base. Thus, to reduce the rising burden of pet healthcare cost, the pet insurance industry is expected to register robust market growth over the forecast period.
 

Pet insurance is an insurance policy bought by a pet owner to reduce the overall pet healthcare expenditures. Pet insurance policies are noted to be paid in part or entirely for the treatment cost of insured pet, including veterinary treatment, injuries, illness, accidents, and various veterinary surgical procedures, among others.
 

The COVID-19 pandemic positively impacted the pet insurance market as it significantly propelled the pet adoption rates and pet ownership statistics, considerably increasing the demand for veterinary services. The COVID-19 pandemic created several challenges for the pet insurance industry including animal health companies, veterinary hospitals, veterinarians as well as pet owners. Various government and local regulatory bodies imposed strict lockdown and restricted the movement of the people and goods owing to the surge in the number of COVID-19 cases across the globe.
 

The imposed lockdown majorly affected the operations and supply chain of the companies operating in the pet care industry and hampered the supply of pet care products. However, a significant upshift was observed in the pet adoption as people were isolated due to the lockdowns, with their social lives largely disrupted. Hence, this led to an increasing demand for pet insurance schemes and services to provide optimum care services for pets at a nominal cost.
 

Further, as companies are noted to offer their policies through virtual sessions, a negligible impact of the pandemic-induced restrictions was observed on the market. Hence, the COVID-19 pandemic is anticipated to have significantly triggered the market expansion across countries.
 

Increasing number of pet adoption is anticipated to fuel the market demand

Rising number of pet adoption for companionship is expected to boost the market growth. Growing concern for animal healthcare is contributing to the growth of pet insurance market. Pet as largely adopted for companionship and are commonly considered as family member by witnessing a shift in trend form pet owner to pet parents.
 

For instance, in 2020, according to the European Pet Food Industry, there were 88 million households owning a pet in Europe. Furthermore, pet adoption is also perceived to aid in depression, loneliness as well as low blood pressure, among others. Moreover, the increasing awareness surrounding pet insurance schemes owing to a significant effort by insurance providers is expected to significantly boost the industry landscape.
 

Lack of awareness about pet insurance policies may impede the market growth

Limited awareness regarding the pet insurance policies and services in the developing regions may possibly hamper the pet insurance market growth. The disposable income per capita in the developing countries is relatively low as compared to their developed counterparts. Additionally, lack of awareness about various infectious, zoonotic disease is another factor impeding the market statistics.
 

Also, the number of private veterinary practitioners are veterinary clinics are less in the developing countries owing to which pet insurance is not considered as a priority. Cats and dogs are the most common companion animals that can be direct and indirect source of the zoonotic infection.
 

Though such infections can be prevented by precautionary measures, but lack of awareness regarding such diseases in the developing countries may cause great harm to both infected pets and pet owners. Thus, the aforementioned factors and lack of awareness regarding pet insurance policies are some of the major factors hampering the market growth.
 

Accident & illness policy is the most favourable policy owing to the inclusive nature is expected to fuel the market forecasts

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The accident & illness policy segment was valued at over USD 7.6 billion in 2021 and is estimated to show significant CAGR during the forecast period. Increasing segmental growth is attributed to inclusive nature of the insurance policies. Majority of the illness and accidents are covered in these insurance policy owing to which the customers prefer the accident & illness policy coverage for their pets. Furthermore, increasing zoonotic diseases and high veterinary cost for the diagnosis and treatment is expected to boost the market size. Also, rising awareness regarding the accident & illness policy is expected to spur the segmental demand.
 

Rising adoption of dogs across the globe is expected to surge the demand for pet insurance market

Dog segment accounted for over 80.5% market proportion in 2021 and is expected to dominate the market throughout the forecast period. The increasing segmental growth is attributed to rising adoption of dogs across the globe. For instance, in 2021, according to the American Pet Products Association (APPA), 90.5 million families own a pet in the U.S. among which 69 million (over 76%) households own a dog.
 

Also, countries in Europe such as U.K, Poland, France are noted to have some of the highest population of pet dogs and that will attract more pet owners to opt for various policy coverage. Thus, the counties with high population of dogs as compared to other companion animals is expected to create a lucrative opportunity for the pet insurance market expansion.
 

Private providers offer maximum coverage with minimum premiums that will foster the industry landscape  

The pet insurance market based on service provider, is bifurcated into public and private. Private provider segment accounted for nearly USD 7.5 billion in 2021 and is expected to show significant CAGR of 7.2% during the forecast period. The high segmental growth is attributed to the maximum coverage with minimum premiums offered by the private insurance policy provider.
 

Also, the private policy providers insure both disease and death whereas as the public insurance policy providers insures offer only coverage against death. The availability of various innovative pet insurance policy offered by the private insurance policy providers contributes to the overall market growth.
 

Increasing adoption of pet in the U.S. will fuel the North America pet insurance market outlook

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North America pet insurance market is poised to exceed USD 5.6 billion by 2030. The market growth in North America is attributed to increasing adoption of pet and increasing consumer awareness regarding various innovative pet insurance policies. For instance, in 2020, according to the North American Pet Health Insurance Association (NAPHIA) reported that the pet health insurance sector for the U.S. posted gross written premium of nearly USD 2 billion that exponentially grew over 27% as compared to USD 1.6 billion by the end of 2019.
 

This growth is owing to the emerging trend of pet adoption in the United States. Moreover, developing veterinary healthcare infrastructure and increasing awareness for veterinary health is expected to boost the regional pet insurance industry expansion.
 

Implementation of inorganic growth strategies to expand business footprint will create lucrative growth opportunities for the companies operating in the market

Major market players operating in the pet insurance industry include Health for Pet, Nationwide, Trupanion, Petfirst, Pethealth, Embrace Pet Insurance Agency, Crum & Forster and Petplan among others. These industry players majorly adopt various strategies including collaborations, acquisitions, mergers, and partnerships to create a global footprint and sustain market competition.
 

Some of the recent industry developments:

• In December 2021, Trupanion and Chewy partnered to offer exclusive suite of pet wellness and health insurance plans to more than 20 million Chewy customers. This strategic partnership was aimed to offer customers both wellness plans, preventive care and comprehensive insurance plans for illness, accidents, and chronic conditions. This partnership enhanced the product portfolio of healthcare services and products.
   
• In October 2019, Warburg Pincus acquired Petplan. The acquisition provided Petplan the access to capital and resources of Warburg Pincus. This acquisition enabled Warburg Pincus to make huge investment in the pet insurance marketplace to boost PetPlan’s operations.
   

The pet insurance market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2030, for the following segments:

By Policy Coverage

• Accident only
• Accident & illness
• Others

By Animal

• Cat
• Dog
• Others

By Provider

• Public
• Private
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Denmark
  • Norway
  • Sweden
  • The Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia