Pet insurance Market worth over $11.6bn by 2027
Published Date: February 22, 2021 Authors: Sumant Ugalmugle, Rupali Swain
Pet Insurance Market size is set to surpass USD 11.6 billion by 2027; according to a new research report by Global Market Insights, Inc.
Growing demand for pet insurance policy coupled with increasing cost of veterinary services will boost the global market growth in the coming years. According to the American Veterinary Medical Association, the total amount spent on veterinary care for all types of pets was around USD 27.8 billion in the year 2016. Thus, increasing expenditure on pet healthcare services will stimulate the demand for pet insurance. Furthermore, various pet insurance providers are offering innovative insurance coverage policies for multiple pets to attract large customer base, thereby fostering the market expansion.
Rising veterinary service cost will enhance the pet insurance market revenue
Increasing veterinary costs has driven the demand for pet insurance. Advanced medical procedures such as blood transfusions, CT scans and magnetic resonance imaging are now being used to treat pets. Therefore, life span of pets has increased considerably due to veterinary hospitals treating large number of injured and sick pets. This has led to an increase in medical bills for pets considerably. This will impel the demand for pet insurance policies, thereby propelling the market value. Additionally, high cost associated with pet care is one of the chief growth factors.
Lack of awareness about pet insurance in developing countries may hamper the market demand
Lack of awareness regarding pet insurance products and services are comparatively high in the developing regions. The per capita income for developing countries is less in comparison to developed countries. Also, private veterinary practices are rarely seen in developing regions, owing to which population does not regard pet insurance as a priority. Moreover, lack of awareness about various zoonotic diseases is another restraining factor for the industry growth.
Accident policies are referred as basic pet insurance that will influence the industry demand
The accidents segment in the pet insurance market is expected to reach USD 245.2 million in 2027. Accident policies are also referred as basic pet insurance as they provide budget-friendly cover against accidental injury and offer around 80% reimbursement of the total veterinary bill. This will increase the demand for accidental policies. Accident cover policy insures pets in case of accidental injury in a motor vehicle incident, electrocution, burns, bone fractures, fight wounds, snake bite toxicity and other accidents. Thus, pet owners opt for accidental coverage policies, thereby augmenting the market growth.
Browse key industry insights spread across 140 pages with 194 market data tables & 16 figures & charts from the report, “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, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increasing disease burden in cats will fuel the companies to offer various cat insurance
The cat segment accounted for 12.5% of the pet insurance market share in 2020. Cats are increasingly being adopted in countries such as U.S., Canada and China. According to the American Pet Products Association survey report, there were 94.2 million cats in U.S. and 89.7 million dogs in 2018. Thus, growing adoption of cats in such countries will boost the demand of pet insurance. In addition, the most prevalent diseases in cats are feline immunodeficiency virus (FIV), feline leukemia virus (FelV) and ringworm among others. Therefore, companies offer cat insurance in two types that include lifetime and non-lifetime insurance. This may potentially increase the demand and spur the market expansion during the forecast timeframe.
Public companies offer customized insurance coverage for pets that will drive the segment growth
The public segment in the pet insurance market exceeded USD 412.6 million in 2020. Various public companies such as the New India Insurance, United India Insurance and Oriental Insurance offer customized insurance coverage for pets that will propel the segment revenue. Moreover, most of the private companies offer pet insurance for cats and dogs only due to higher demand. Thus, pet owners that are looking to insure other animal species turn up to public insurance companies. Public insurance companies usually have a high claim settlement ratio and are trusted by majority of the population, thus leading to advancement in the future.
Various companies in European region are using web-based applications and software to connects veterinary professionals & pet owners and streamline the process of availing benefits
Europe pet insurance market size was USD 3.3 billion in 2020 and is anticipated to hit USD 5.1 billion by 2027 owing to early introduction of pet insurance coupled with high penetration of insurance coverage for companion animals. Also, growing adoption of insurance of exotic breeds of cats and dogs will play a significant role in stimulating the growth of the European market over the coming years. Companies in European region are using web-based applications and software that connects veterinary professionals & pet owners and streamlines the process of availing benefits of pet insurance schemes. For instance, in December 2018, Waggel Limited, a UK-based insurance start-up firm launched a digital pet insurance. The main objective was to simplify the extremely complicated pet insurance process and allow the users to get quotes in less than 30 seconds. Such innovations and integration of technology to enhance the pet insurance process will fuel the regional growth.
Adoption of inorganic growth strategies to strengthen companies revenue
Some of the eminent players operating in the pet insurance market include Health for Pet, Nationwide, Trupanion, Petfirst, Pethealth, Embrace Pet Insurance Agency, Crum & Forster and Petplan among others. These industry leaders focus on strategies such as partnerships, acquisitions and mergers to garner more revenue and sustain market competition.