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Pet Insurance Market - By Policy Coverage (Accident only, Accident & Illness, Others), By Animal (Cat, Dog), By Provider (Pubic, Private), By Region - Global Forecast to 2032
- Report ID: GMI4284
- Published Date: Mar 2023
- Report Format: PDF
Pet Insurance Market Size
Pet Insurance Market size was valued at over USD 8.6 billion in 2022 and is estimated to register over 7% CAGR between 2023 and 2032. Increasing number of pet adoptions, rising awareness about pet insurance policies, availability of innovative and attractive pet insurance policies, and rising cost of veterinary treatment and services.
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Pet adoptions significantly increased during and post COVID-19 pandemic. The emotional impact of isolation during lockdowns resulted in pet owners getting dependent on their pets for companionship, more like a family member, instead of being viewed as property. In 2020, at the height of the pandemic, people who worked remotely were eight times as likely to acquire a pet.
According to AVMA Pet Ownership and Demographics Sourcebook published in 2022, the percentage of US households that own at least one dog increased from 38% in 2016 to 45% between 2016 and 2020 but had levelled off by 2022. On the other hand, the percentage of households that own at least one cat increased slightly between 2016 and 2020, from 25% to 26%, and then increased to 29% in 2022.
| Report Attribute | Details |
|---|---|
| Base Year: | 2022 |
| Pet Insurance Market Size in 2022: | USD 8.5 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 7% |
| 2032 Value Projection: | USD 16 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 149 |
| Tables, Charts & Figures: | 217 |
| Segments covered: | Policy Coverage, Animal, Insurance Provider and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Increasing cost of veterinary services is anticipated to amplify the pet insurance market growth
Consumer spending on dogs and cats between 2020 and 2022 increased across the board. According to AVMA Pet Ownership and Demographics Sourcebook published in 2022, the mean annual expenditures on veterinary visits for households with one dog increased more than 60% from USD 224 in 2020 to USD 362 in 2022. For households with cats, mean annual expenditures on veterinary visits were USD 189 in 2020 and USD 321 in 2022, almost a 70% increase. The mean cost of an annual wellness visit for a dog and a cat was, respectively, USD 168 and USD 141 in 2016, USD 195 and USD 133 in 2020, and USD 192 and USD 169 in 2022.
The affordability to pay for veterinary services is a challenge for some pet owners. The presence of pet health insurance is one tool that can help alleviate this burden. Availability of pet health insurance is expected to increase frequency of veterinarian visits and ultimately spending on healthcare.
Pet Insurance Market Analysis
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Based on type of policy coverage, the pet insurance market is segmented as accident only, accident & illness, and others. The accident & illness segment is expected to reach around USD 14.4 billion by 2030. The comprehensive nature and wide coverage of accident & illness policy stimulates its adoption rate among pet owners. Treatments for poison ingestion, broken bones, allergies, swallowed objects, burns, urinary tract infections, laboratory tests, X-rays, surgeries, and hospitalizations are generally covered under this policy. Pet insurance companies are undertaking numerous efforts to increase consumer awareness pertaining to various policies and the benefits associated with pet healthcare insurance. They are using social media and digital marketing as a tool to maximize the customer outreach by sharing information regarding various insurance policies designed for animals.
Based on type of animal, the pet insurance market is segmented into cats, dogs, and others. Dogs segment dominated the overall pet insurance industry in 2021 and is estimated to witness 6.9% CAGR during the forecast period. The large share of this segment can be attributed to the factors such as the large pet dogs population and increasing ownership rate and increasing animal healthcare expenditure. Furthermore, insurance companies offer policy coverage to wider range of dog breeds including cross breed, exotic dogs, sheep dogs, watch dogs, and hunting dogs that are pets.
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Based on insurance provider, the pet insurance market is segmented as private and public. In 2021, the private insurance provider held largest share and is expected to grow by 7.2% during the forecast period. The advantages offered by private insurance providers such as shorter wait times, greater individualized attention, and more sophisticated facilities boosts its adoption among pet owners. Moreover, private players offer maximum coverage plans coupled with minimum premium that will further fuel the business expansion.
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U.S. pet insurance market is anticipated to expand at a significant pace to reach more than USD 5.67 billion by 2030. The significant market share is owing to several factors including presence of major market players, easy availability of pet insurance, high cost of veterinary services, increasing ownership of dogs and cats, and increasing awareness about pet insurance among pet holders in the US.
Pet Insurance Market Share
Some of the major market players operating in the pet insurance industry are :
- Anicom Holdings Inc. (Japan)
- Crum & Forster Pet Insurance (US)
- Embrace Pet Insurance Agency LLC (US)
- Figo Pet Insurance LLC (US)
- Health for Pet (Brazil)
- Hollard (South Africa)
- Nationwide Mutual Insurance Company (US)
- Oneplan (South Africa)
- PetFirst (US)
- Pethealth Inc. (Canada)
- Petplan (UK)
- Protectapet (Spain)
- RSA Insurance Group Plc (UK)
- The Oriental Insurance Company Ltd. (India)
- Trupanion, Inc. (US).
These market players concentrate on strategic developments such as partnerships, new product launch & commercialization, vertical integration for business expansion. Furthermore, these players are heavily investing in R&D activities that enables them to innovate & capitalize on these products that further helps to garner maximum revenue in the market.
Recent industry developments:
- In January 2022, RSA Insurance Group partnered with Expert.ai to enhance its claim management process. This strategic partnership will help RSA to increase the reach of intelligent document processing and broader tranche of pet insurance claims, thereby enhancing operation capabilities of the firm.
- 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.
Pet insurance market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:
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By Policy Coverage
- Accident only
- Accident & illness
- Others
By Animal
- Dogs
- Cats
- Others
By Insurance Provider
- Private
- Public
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Denmark
- Norway
- Sweden
- The Netherlands
- Asia Pacific
- China
- Japan
- India
- Australia
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- South Africa
- Saudi Arabia
Frequently Asked Questions (FAQ) :
Pet Insurance Market Scope
