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, 2021 - 2027

Industry trends

Pet Insurance Market size was valued at USD 6.9 billion in 2020 and is estimated to grow at 7.7% CAGR between 2021 and 2027. Pet insurance is defined as an insurance that can be paid partly or totally for the veterinary treatment of the insured pet. Pet insurance services involve policy coverage for pet accidents, injuries and for pet illnesses. Also, various pet insurance providers are offering innovative insurance coverage policies for multiple pets to attract large customer base. Furthermore, with increasing healthcare cost for pets, the pet owners are readily adopting pet health insurance, thereby fostering the market growth.
 

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The rise in companion animal population is anticipated to increase the demand for veterinary healthcare facilities. Veterinary services are capital intensive and require veterinary doctors, specially designed diagnostic equipment and skilled technicians. According to the American Pet Products Association report 2018, veterinary care spending increased by 7% from USD 15.9 billion in 2016 to USD 17.1 billion in 2017. Therefore, the rising veterinary cost will attract more pet owners to opt for policies for various diseases, accidents and illnesses that will spur the market expansion for pet insurance.
 

Various companies are taking steps to ensure that pet gets extraordinary care during the COVID-19 outbreak. Also, the companies are innovating multiple solution for their pet owners to enhance their policy process. For instance, in July 2020, Alipay launched its new pet insurance with its open-sourced noseprint recognition technology. The platform can create an exclusive electronic file for each pet based on its noseprint and use the information to verify a pet's identity before completing a claim. Thus, the industry has grown for past few years, and the COVID-19 poses a minimal effect.
 

Increasing number of pet adoption will boost the pet insurance market revenue

Number of pet animals adopted widely for companionship has increased significantly in the past few years. Pets are largely adopted by people for companionship and there has been shift in trend from pet owners to pet parents which indicates that pets are considered as a part of family these days. According to the European Pet Food Industry statistics, there were around 85 million pet owning homes in Europe in the year 2019. This number involves various pet insurance policy coverage, thereby augmenting the market value. Growing social acceptance of pets has stimulated pet adoption. Pet acceptance is also perceived to assist in low blood pressure, depression and loneliness, thus creating growth opportunity for the market during the forecast timeframe.
 

Lack of standardized pet health codes or reimbursement may impede the overall market demand

Standard diagnosis coding system has highly evolved for maintaining human medical records in developed nations such as the U.S. and Canada. This simplifies the overall process of claiming reimbursement and availing the insurance benefits that are offered by federal governments of respected countries. However, there is a lack of standardized pet health codes. Most of the veterinary records are free text and do not have a standard diagnosis coding. This is one of the major barriers in using the veterinary records for claiming the pet insurance, thus hampering the industry growth. Although, due to lack of standardized pet health codes, various companies and government associations are working with veterinary professionals to create a framework for standard pet health codes. This will ensure simplicity in claiming process and help the insurance companies to improve pre-authorization procedure, thereby enhancing the market expansion to some extent.
 

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Accident & illness policy is the most favorable policy for young animals that will influence the market growth

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The accident & illness policy segment in the pet insurance market accounted for USD 6.6 billion in 2020 led by comprehensive nature of these insurance policies. Also, as majority of the illnesses and accidents are both covered in these insurance policies, the customers tend to prefer accident & illness policy coverage for their pets. Therefore, the accident & illness policy is the most favorable policy for young animals, thereby driving the market revenue. Moreover, high veterinary treatment and diagnostic cost coupled with increase in awareness regarding the accident & illness insurance will further foster the market value of pet insurance.
 

Increasing adoption of dogs across the globe will upsurge the demand for pet insurance

Dog segment dominated around 80% of the market share in 2020 impelled by growing acceptance of dogs across the globe. Insurance providers offer dog health insurance plans for injuries, illnesses and wellness care. Countries such as U.S., Argentina, France have the highest population of pet dogs and that will attract pet owners to opt for various policy coverage, thus propelling the industry demand. Few of the insurance companies provide offers to include chronic and new recurring conditions at no additional cost, thus augmenting the segment growth.
 

Private providers offer maximum coverage with minimum premiums that will further drive the pet insurance market size

Private provider segment exceeded USD 6.4 billion in 2020 and is expected to showcase 7.8% growth rate till 2027. Usage of various strategies such as digital marketing and competitive pricing of the monthly premiums are the major factors leading to the market growth. Also, development of innovative insurance schemes coupled with various efforts to increase the customer awareness and satisfaction will further fuel the segment expansion in the future. Thus, private providers offer maximum coverage with minimum premiums that will further impel the industry revenue.
 

Growing adoption of pet cats and pet dogs in various states of U.S. will spur the growth of North America region

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North America pet insurance market size is poised to reach USD 3.9 billion by 2027 on account of increasing consumer awareness regarding various novel pet insurance policies coupled with presence of several major industry players. Also, rising trend of pet acceptance in the U.S. will further augment the regional growth. For instance, according to the American Society for Prevention of Cruelty to Animals (ASPCA) report, approximately 3.2 million shelter animals are adopted every year in U.S. Among those shelter animals, 1.6 million are dogs and 1.6 million are cats. Thus, growing adoption of pets in various states of America will boost the industry value. Furthermore, growing concerns among the population pertaining to their pet’s health is another major growth driving factor.
 

Adoption of inorganic growth strategies to create a global footprint will pave growth opportunities for companies operating in the market

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

Some of the recent industry developments:

• In October 2019, Embrace announced a partnership with PawSupport for a 24/7 Pet Help Line for assistance through online chat, email, and a video chat. This move will provide new services to policyholders. This strategy enabled company to expand their operations, thereby strengthening their market presence.
   
• In September 2019, Anicom launched its new pet insurance scheme called Animal Kenshoku ni, in Japan. This insurance scheme is aimed to provide cover to pets that are more than 8 years old. This new product launch strategy helped company to expand its existing customer base and strengthen its hold in the Japanese market.
   

The pet insurance market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments:

Market, By Policy Coverage

• Accident only
• Accident & illness
• Others

Market, By Animal

• Cat
• Dog
• Others

Market, 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