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, Competitive Market Share & Forecast, 2019 – 2025

Industry trends

Pet Insurance Market size exceeded $5 bn in 2018 and is projected to register 8.4% CAGR from 2019 to 2025.
 

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Pet insurance is availed by owners with an intent to lower the overall cost of veterinary services and is similar to health insurance for humans. Certain policies provide coverage for all the veterinary bills while some policies cover only a certain portion of the overall bills. Policies also provide pet care for hereditary illnesses and after-death compensation. Insurance providers are also offering coverage for pet healthcare services availed in foreign countries to attract a larger customer base.
 

Pet insurance market can be traced back to late 1890’s when insurance was focused for horses and other livestock animals in Sweden. Later, adoption of medical insurance for pets began in late 1940’s in the UK. Insurance cover for pets was introduced in the U.S. in early 1980’s when a famous TV dog Lassie availed the first insurance cover. The industry is still in its nascent stage in North America and other developing economies of Asia Pacific region. However, with increasing healthcare cost for pets, the owners are readily adopting pet health insurance to lower the overall pet healthcare costs.
 

The industry will witness influx of new and private players offering innovative and affordable coverage in the future. Also, current players are taking efforts to educate consumers about increasing veterinary costs and various advantages of pet medical insurance plans. Furthermore, various government organizations are putting in efforts to streamline and standardize the pet health codes to ensure smooth and efficient reimbursement process.
 

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Social media and digital marketing will spread awareness regarding pet insurance

Pet insurance companies are making numerous and continued efforts to increase consumer awareness pertaining to various policies and the benefits associated with them. Companies are using social media and digital marketing as a tool to maximize the customer outreach by sharing information regarding various insurance policies of cat and dog breeds. Majority of the companies are targeting the untapped and poorly penetrated markets with primary objective of gaining a higher share, thus giving impetus to the overall industry growth.
 

High cost of veterinary services is the primary factor for adoption of pet medical insurance. Veterinary bills for serious health conditions or unexpected surgeries such as cancer and cruciate ligament tears may surge up to USD 10,000 to 20,000. As the policy usually covers 80% of the treatment cost, owners are increasingly opting for pet medical insurance plans. Also, various companies focus on wellness care that cover veterinary bills due to vaccination, spaying and neutering, thus reducing the overall pet healthcare costs.
 

Accident and illness policies are in demand due to coverage of large number of chronic diseases

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Accident and illness policy provide reimbursement for treatments of broken bones, burns, swallowed objects, poison ingestion, urinary tract infections, allergies, laboratory tests, X-rays, surgeries and hospitalizations. The comprehensive nature of accident and illness policies is the major growth rendering factor that attracts large number of pet owners. Accident and illness insurance cover dominated the overall industry and accounted for revenue of USD 5.4 billion in 2018. High demand is attributed to the ability of the policy to provide reimbursement for maximum number of illness along with accidents.
 

Dogs continue to dominate the overall pet insurance market

Insurance cover for dogs accounted for maximum revenue share in 2018 as the healthcare cost for dogs is more expensive to cover than other pets. For instance, surgical vet visits for dogs costs around USD 621 and routine vet visits cost around USD 231. Companies offer lucrative dog insurance policies that can provide cover for wide range of dog breeds such as exotic dogs, cross bred, sheep dogs, watch dogs, and hunting dogs that are pets. Also, majority of the pet owners consider dogs as their own family member and go an extra mile just to provide them with the best care possible, thus leading to higher adoption of dog insurance.
 

Private insurance players are offering innovative policies for multiple pets

Rising number of private insurance providers will significantly augment market growth. Private players tend to provide insurance policies with maximum coverage plans coupled with minimum premium offers. Leading insurance providers offer various novel pet schemes to retain consumers. Innovative insurance policies such as schemes that cover pet irrespective of their ages, multi-pet insurance policies that include multiple pets in a single plan attract large number of customers. Such initiatives adopted by the private players enable them to hold maximum shares in the pet health insurance market.
 

NAPHIA undertaking various initiatives to boost North America pet insurance market

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North America will witness high adoption of insurance policies for pets in lieu of high cost of veterinary services and bills. North America Pet Health Insurance Association (NAPHIA) is the key government organization that works collectively with animal welfare organizations, veterinary professionals and insurance providers to the drive adoption of pet health insurance. The association have already undertaken various initiatives to organize and promote events that provide education, networking and professional development opportunities for its members. NAPHIA is also pursuing opportunities to improve, simplify, promote and advance insurance regulations and law in the various legal jurisdictions across Canada and the U.S.
 

Europe pet insurance market is expected to show robust growth of 6.7% during the projected timeframe. The region dominated the overall industry due to early introduction coupled with high penetration of insurance coverage for companion animals. Countries such as UK and Sweden witnessed market penetration of more than 25% and 40%, respectively, in 2017 and play a major role in driving the regional growth. Various industry players such as Petplan, Nationwide, Royal & Sun Alliance (RSA) and Direct Line Insurance Group are few of the companies that dominate the UK pet medical insurance business. High demand for insurance of exotic breeds of cats and dogs will play a major role in driving the growth of European pet insurance business.
 

Anicom is leading the pet insurance market in Japan

Anicom Holdings Inc. is the key pet health insurance provider in Japan with more than 50% of the market share. The company is operating in the industry since 2007 and undertakes various strategic initiatives including new product launch to strengthen its business. Other key players operating in the global industry include Embrace Pet Insurance, Health for Pet, Nationwide, Petfirst, Pethealth, Petplan and Trupanion. These companies adopt various policies such as acquisitions, mergers, geographic expansion, to expand business.
 

Recent industry developments:

• In September 2019, Anicom announced the launch of new pet insurance scheme called Animal Kenshoku ni. This insurance scheme is aimed to provide cover to pets that are more than 8 years old. This new product launch will enable the company to expand its existing customer base and strengthen its hold in the Japanese pet insurance market.
   
• In February 2019, Petsecure announced agreement with the Winnipeg Humane Society to exclusively run six-week complimentary trial insurance for the Winnipeg Humane Society’s pet adopters. This partnership will enable the company to attract a larger customer base and strengthen its business.
   

The pet insurance market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2014 to 2025, for the following segments:

By Policy Coverage

• Accident only
• Accident & illness
• Others

By Animal

• Cat
• Dog
• Others

By Provider

• Private
• Public

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
  • Japan
  • China
  • India
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia