Pet Insurance Market Is Gaining Traction By Increasing Pet Adoption

Pet Insurance Market Is Gaining Traction By Increasing Pet Adoption

The pet insurance market provides financial protection for pet medical expenses. Pet insurance reimbursements help cover the cost of unexpected vet visits, surgeries, and emergencies. It protects pet owners from the high cost of vet bills and eases the financial pressure of caring for a sick or injured cat or dog.

The global pet insurance market is estimated to be valued at US$ 11.05 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the pet insurance market are Medibank Private Limited, Petplan, Oneplan Insurance, Dotsure.co.za (Hollard), Healthy Paws Pet Insurance LLC, Figo Pet Insurance LLC, Embrace Pet Insurance Agency LLC, Anicom Holdings Inc., Oriental Insurance Company Ltd., MetLife Services and Solutions LLC (PetFirst Healthcare LLC), and Crum & Forster Pet Insurance Group (Hartville Pet Insurance Group), among others. The growing demand for pet insurance is attributed to increasing pet adoption and higher veterinary healthcare costs. Pet owners are more aware now of the need for financial protection against large, unexpected vet bills. Many insurers are also expanding globally to capture the growing pet insurance demand internationally.

Market Key Trends

The Pet Insurance Market Demand is expected to grow steadily driven by the key trend of increasing pet adoption. More people are adopting pets and consider them as part of the family. This has boosted the pet care industry and driven the need for financial protection of vet bills. Another major trend is the rising veterinary healthcare costs which are pushing up demand for pet insurance. The average cost of a vet visit in the U.S. for example rose to around $380 in 2021. The market is also witnessing growth through online pet insurance purchases and global expansion of major players into international markets with rising pet care spending.

Porter's Analysis
Threat of new entrants: New companies can enter the market easily as initial investment is low however established players have stronger brand reputation and distribution networks.

Bargaining power of buyers: Buyers have moderate bargaining power as they have numerous options to choose from however switching costs when shifting providers is low.

Bargaining power of suppliers: Suppliers have low bargaining power as insurance companies can switch to alternate suppliers and manufacturing processes easily.

Threat of new substitutes: Threat of substitutes is low as pet health insurance fills a unique need however direct payment of vet bills is an alternative for buyers.

Competitive rivalry: Competition is high among existing players to acquire more market share and customers due to low brand loyalty.

Geographical Regions
North America accounts for the largest share of the global pet insurance market in terms of value owing to high pet ownership and expenditures in countries like the US and Canada. Asia Pacific is expected to be the fastest growing region during the forecast period driven by rising pet adoption and increasing awareness about pet health insurance in India and China.

Geographical Regions
Europe is another major revenue generating region for the pet insurance market currently led by countries like the UK, Germany and France. Growing trend of humanizing pets and perceiving them as family members is driving higher spending on pet care including insurance coverage.

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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)