Latin America Pet Insurance Market Expected to Reach $1.27 Billion by 2030 - Allied Market Research

According to a recent report published by Allied Market Research, titled, “Latin America Pet Insurance Market by Policy Coverage, Animal Type, and Sales Channel: Opportunity Analysis and Industry Forecast, 2021–2030,” the Latin America pet insurance market was valued at $0.28 billion in 2020, and is projected to reach $1.27 billion by 2030, growing at a CAGR of 16.4% from 2021 to 2030.

Pet insurance is similar to health insurance policies that offer annual premiums, co-pays, deductibles, and caps for pets. The pet health insurance covers for all types of pets including dog, cat, birds, reptiles, rabbits, ferrets, pigs, and others making it suitable for insuring rare and expensive pets. In addition, the premium of pet insurance is determined depending upon the size such as height & weight, age, breed, location, term & length of insurance policy, common indoor and outdoor risks in the surroundings, plan type, and others.

Furthermore, increase in demand for insurance policies and rise in need for financial safety in case of increasing uncertainties are boosting the growth of the Latin America pet insurance market analysis. In addition, surge in number of pets is positively impacting the growth of the market. However, lack of awareness regarding pet insurance policy and high premium cost are hampering the market growth. On the contrary, implementation of technologies in existing products and service lines government initiatives regarding pet insurance policies are expected to offer remunerative opportunities for expansion of the market during the forecast period.

Depending on animal type, the dogs segment dominated the market share in 2020, and is expected to continue this trend in the upcoming years, dogs being the most preferred animals in most countries across the globe and huge adoption of dog as a pet due to the contribution of dogs toward safety factors, and their higher cost of maintenance is increasing the demand for pet insurance in Latin America. However, the other segment is anticipated to grow at a significant rate as comprehensive coverage covers every aspect of the pets from yearly checkups to regular vaccinations, which in turn is expected to provide lucrative opportunities for the Latin America pet insurance market growth.

Country wise, the pet insurance market was dominated by Brazil in 2020, and is expected to retain its position during the forecast period, owing to Brazilians are increasingly viewing pets as family members, leading them to spend more on services such as pet insurance and medical care. Furthermore, Brazil's pet industry has grown as a result of the country's strong economic growth and people's increased disposable income to spend on their pets.

The outbreak of COVID-19 is anticipated to have a positive impact on growth of the Latin America pet insurance market trends. This is attributed to increase in demand for pet insurance caused due to pandemic. In addition, the pandemic has led to increase in spending rates in insurance products owing to surge in awareness about importance of life. Due to this, half of the pet insurance owners are also inclined toward buying dog insurance and cat insurance for future concern. Furthermore, the pandemic has favored the insurance industry and contributed in economy by giving businesses to insurance players in the region.   

Key Findings Of The Study

• By policy coverage, the accident & illness segment led the Latin America pet insurance industry in terms of revenue in 2020. 
• By animal type, the dogs segment accounted for the highest Latin America pet insurance market share in 2020.
• By sales channel, the agency segment accounted for the highest revenue in the Latin America pet insurance market size in 2020.
• By country, Brazil generated the highest revenue in the Latin America pet insurance analysis in 2020.

The key players profiled in the Latin America pet insurance market include 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.