Pet Insurance Market Outlook - 2030
The global pet insurance market size was valued at $ 4.5 billion in 2020, and is projected to reach $16.8 billion by 2030, growing at a CAGR of 14.3% from 2021 to 2030. Pet insurance is an insurance policy bought by the pet owner to pay partly or in total for the veterinary treatment of the insured pet’s illness or injury. Some policy also covers the pet death, or in case the lost or stolen. Moreover, the growing medical expenses in veterinary medicine and employing of expensive medical techniques and drugs is boosting the demand of pet insurance market.
Growing and increased demand for pet insurance market policies and rise in need for financial safety in case of surge in uncertainties boost the growth of the global pet insurance market. In addition, surge in number of veterinary centers positively impacts the growth of the market. However, lack of awareness regarding pet insurance policy and high premium cost hampers the market growth. On the contrary implementation of technologies in existing products and service lines, and government initiatives regarding pet insurance policies are expected to offer remunerative opportunities for expansion of the market during the forecast period.
By policy coverage, the accident & illness segment is expected to garner a significant share during the forecast period owing to surge in acceptance of pet insurance and increase in cost of treatments and medication fees. In addition, accident & illness pet insurance market could prove a cost-effective way of avoiding any large, unexpected bills due to its actions. However, others segment is anticipated to grow at a significant rate owing to, growing diversification in pets and improvement in pet policies which includes new types of pets such as turtles and others, is expected to provide lucrative opportunities for the market growth.
Region wise, the pet insurance market was dominated by Europe in 2020, and is expected to retain its position during the forecast period, owing to increase in adoption of pets in the UK, Italy, France, Russia, and Germany. In addition, many insurance companies across Europe are coming up with various policy coverage to encourage pet owners to adopt dogs. These companies render services with plans for illnesses, injuries, and various diseases. However, Asia-Pacific is expected to witness significant growth in the near future, owing to growing awareness of pet care and pet insurance during the lockdown.
The report focuses on growth prospects, restraints, and trends of the global pet insurance market growth. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global pet insurance market share.
Segment review
The pet insurance industry is segmented on the basis of policy coverage, animal type, sales channel, and region. By policy coverage, the market is divided into accident & illness, accident only, and others. By animal type, it is categorized into dogs, cats, and others. By sales channel, the market is divided into broker, agency, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Policy Coverage
Accident Only is segment is projected as one of the most lucrative segments.
The key players profiled in the pet insurance market analysis are Embrace Pet Insurance Agency, LLC, Figo Pet Insurance LLC., Hartville Group, Nationwide, Pet Assure Corp., PetFirst, Ipet Insurance, Pets Best Insurance Services, LLC, Royal & Sun Alliance (RSA), and Trupanion. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
COVID-19 impact analysis
The pet insurance market has witnessed significant growth in the past few years; however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden decline in 2020. This is attributed to majority of the diagnosis and veterinary centers being closed due to lockdown implemented by various governments. In addition, COVID-19 has highly affected the industries in terms of growth, economy, health and mental wellbeing of every individual. Various pet associated companies are taking extraordinary care of pets during pandemic times. Insurance companies are trying to innovate and modify the policy coverage and policies depending upon the incidences of health conditions. Companies are focusing on providing solutions to the pet owners and spreading awareness regarding the cost reimbursement available in the market. Moreover, care and concern for pets, especially dogs, marks the successful transition of Indians from pet owners 10 years ago, to pet parents now. With higher disposable incomes in developing countries like India, more people are now willing to spend on additional things like pets and their healthcare.
By Animal Type
Dogs is projected as one of the most lucrative segments.
Market landscape and trends
The pet insurance market grows with rise in pet ownership, and the awareness of pet healthcare along with pet owners' desire to spend on their pets' well-being. Furthermore, with the introduction of new insurance carriers and the development of old ones, the market has seen increased competition. Globally, Petplan, Trupanion, and Healthy Paws are some well-known pet insurance providers. Moreover, pet insurance policies have evolved to provide more comprehensive coverage, including coverage for accidents and illnesses, preventive care, inherited disorders, and alternative therapies, which indicates the increasing need for comprehensive pet healthcare solutions. In addition, pet insurance companies are increasingly offering customizable policies, allowing pet owners to tailor coverage to their unique requirements and budgets. This customizable policy offering appeals to a broader set of clients. Furthermore, the pet insurance market is heavily reliant on technology. To ease policy management, claims processing, and client communication, insurers leverage digital platforms and mobile apps. Wearable gadgets and telemedicine services are also being implemented to improve the whole pet healthcare experience. Moreover, the pet insurance industry has a rise in emphasis on preventive care and wellness programs. Insurance companies collaborate with veterinarians and pet service providers to provide reduced immunizations, routine check-ups, dental care, and other preventive services. Furthermore, pet owners in some countries may be entitled to deduct certain expenses related to their pets, such as pet insurance premiums, from their taxes, which is expected to stimulate the purchase of pet insurance indirectly. Therefore, these are some of the major market trends of trade credit insurance market.
Government Initiatives
Consumer protection policies that govern the insurance industry in general, including pet insurance, are routinely enacted by governments. These consumer protection rules aim to ensure that insurance policies are fair, transparent, and appropriately cover their clients. Furthermore, Governments may have animal welfare restrictions that have an indirect impact on the pet insurance market. Certain jurisdictions, for instance, are expected to compel pet owners to carry insurance coverage for specific sorts of dogs, such as dangerous dog breeds. Moreover, pet owners in some countries are bound to be entitled to deduct certain expenses related to their pets, such as pet insurance premiums, from their taxes, which may stimulate the purchase of pet insurance indirectly. In addition, to make pet insurance more inexpensive and available to a larger population, governments may develop agreements with pet insurance firms or offer subsidies. These efforts are able to target certain groups, such as low-income families or those with service animals, and aim to ensure that all pet owners have access to basic veterinarian care. Furthermore, governments are anticipated to conduct public awareness and education programs to educate pet owners on the benefits of pet insurance and how it can assist them handle unexpected veterinary expenditures. These campaigns are expected to include working with insurance companies, veterinarians, and animal welfare organizations to raise awareness of the importance of pet insurance and its possible benefits.
Top impacting factors
Increased demand for pet insurance policies
There is an increase in the demand for pet insurance policies owing to rise in pet ownership. In addition, surge in popularity of pet humanization concept is increasing the demand for pet grooming and care products. Owners, especially millennials, are willing to spend more on their animals to ensure a healthy and secure life. Moreover, various countries across the globe have observed a significant rise in the adoption of animals, including dogs and cats as companion animals, Dogs and cats are not only the most preferred pets but are also known to improve the physical and mental health of humans. In addition, pet insurance companies are offering customized policies with the changing customer demand such as multi-pet insurance and many other. They focus on the packages as per pet lifetime and per incident. Furthermore, with the rise in number of pet owners many insurers are introducing new pet insurance which in turn is driving the growth of the market. For instance, in July 2020, Lemonade launched pet insurance, with a 10% discount available to existing Lemonade policy holders who choose to bundle their new pet insurance with home/renters’ insurance.
Rise in need for financial safety in case of increasing uncertainties
The demand for quality veterinary accident only is growing with the rise in number of pets which in turn is driving the cost of veterinary accident only. Thus, the demand for pet insurance is on an increase. Moreover, the policy covers blood tests, urinalysis, x-rays, MRIs, labwork, CT scans and ultrasounds, as well as outpatient, specialty and emergency care procedures, along with hospitalization and surgery. In addition, with the rise in medical costs, pet owners can also get an extended accident and illness package that goes beyond the initial coverage of accidental road accidents and poisonings, and a variety illness. Furthermore, majority of the pets are becoming a family for the pet owners which is making them spend increasing amount on their yearly checkup due to growing problems arising from cross breed pets. Thus, majority of pet Insurance market comes with an optional wellness package, as well, which provides savings for routine stuff like an annual physical checkup, heartworm tests, fecal tests, annual parasite evaluation tests, blood work and vaccines. Therefore, pet insurance market saves the pet’s parents from growing number of medical complication of pets.
By Region
Asia-Pacific would exhibit the highest CAGR of 18.4% during 2021-2030.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global pet insurance market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global pet insurance market trends is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the pet insurance market from 2021 to 2030 is provided to determine the market potential.
Pet Insurance Market Report Highlights
| Aspects | Details |
 By Policy Coverage |
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 By Animal Type |
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 By Sales Channel |
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 By Region |
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 By Key Market Players |
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Analyst Review
Pet insurance industry plays a major role in providing financial protection to pet’s owner by offset the overall cost of their animal’s medical bills. For instance, according to American Pet Products Association's (APPA) National Pet Owners Survey in 2019, about 151.1 million, or 70% of, households in the U.S. reported owning a pet, and will spend an estimated $32.3 billion on vet care and products in 2021 up from $31.4 billion as compared to 2020. In addition, the cost and coverage vary based on many factors that include the animal’s age, health profile, and level of care insured. Some pet insurance policies also cover alternative therapies, behavioral modification, hospital boarding, lost pet advertising/reward, nursing/whelping, chiropractic, acupuncture, and hydrotherapy.
Key providers of banking as an Accident Only market such as Nationwide Mutual Insurance Company, Trupanion, MetLife Accident Only and Solutions, LLC account for a significant share in the market. Increase in adoption of pet insurance in the North America region is driven by surge in awareness of pet health safety which leads to increase in acquisition, collaboration, partnership, and business expansion. For instance, June 2021, an U.S. based pet insurer Trupanion announced expansion of its business in the international market including Japan, UK, Brazil, and Western Europe to increase its global reach. In addition, various investment firms are finding lucrative opportunity to invest in the pet insurance firm. For instance, in October 2020, a global investment company JAB Holding Co. acquired majority stakes in Cardif Pinnacle’s a UK based pet insurer. In addition, it also acquired a Chicago based pet insurance company Figo to deliver a holistic suite of pet insurance and healthcare Accident Only. Furthermore, the largest retail companies such as Walmart is also showing interest in investing in insurance firms. For instance, in January 2021, the nation’s largest pet insurer partnered with Walmart to provide affordable pet insurance and for availing the pet insurance Accident Only. Additionally, availing the medicine products and in-store claim Accident Only. This shows the interest and benefits of adopting the pet insurance. North America is expected to dominate the market during the forecast period while emerging country such as Europe is projected to offer significant growth opportunities.
The Pet Insurance Market is estimated to grow at a CAGR of 14.3% from 2021 to 2030.
The Pet Insurance Market is projected to reach $16.81 Billion by 2030.
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There is an increase in the demand for pet insurance policies owing to rise in pet ownership. In addition, surge in popularity of pet humanization concept is increasing the demand for pet grooming and care products.
The key players profiled in the report include Embrace Pet Insurance Agency, LLC, Figo Pet Insurance LLC., Hartville Group, Nationwide and many more.
On the basis of top growing big corporations, we select top 10 players.
The pet insurance industry is segmented on the basis of policy coverage, animal type, sales channel, and region.
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