The growing affection and bond between pets and owners has resulted in increasing expenditure on pet health insurance. Pet insurance provides coverage for veterinary care and helps pet owners manage treatment costs of their animal companions. Dogs and cats are the most commonly insured pets globally. Pet owners are increasingly willing to spend on preventive care and unplanned veterinary visits for their pets. The pet insurance market allows pet parents to protect their finances from unforeseen medical bills and enjoy peace of mind regarding their pet's wellness.
The global pet insurance market is estimated to be valued at US$ 11.05 Mn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period from 2024 to 2030. Pet insurance offers financial protection against expensive veterinary bills. It reimburses pet owners for various medical costs ranging from annual checkups and routine vaccines to critical illnesses and surgeries. The growing humanization of pets, rising pet adoption in developing nations, and increasing pet care expenditure fuel the demand for pet health coverage plans globally.
Key Takeaways
Key players operating in the pet insurance market include 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.
Pet health insurers witness tremendous opportunities due to the surge in pet adoption during and post-pandemic. Millennials are increasingly getting pets instead of children and allocating significant funds towards ensuring their well-being. The high insured percentage of dogs and cats in North America and Europe also presents a business avenue for pet insurers in other regions with low insurance penetration.
Major insurers are expanding their geographical footprint in Asia Pacific and Latin America through partnerships with local brokers and veterinary clinics. Customized wellness plans, telehealth for virtual vet visits, and online claim processes aid global expansion endeavours. Strategic acquisitions further bolster regional presence.
Market Drivers
Increased spending on pet healthcare is a key factor propelling the pet insurance market. The pandemic encouraged more pet adoption and ownership, enhancing willingness to invest in their overall health. Average veterinary costs continue rising with advances in medical technology and procedures. Insurance offers a budget-friendly solution to these increasing healthcare bills.
Educating owners on the long-term benefits of preventive coverage also drives demand. With insurers promoting vaccination, spaying/neutering and annual exams, pet parents utilize policies to support wellness visits and catch illnesses early. This lowers future treatment expenses substantially.
Market Restraints
Low insurance penetration in certain regions poses a hindrance where owners view coverage as an unnecessary extra cost or remain unaware of availability. High premiums for exotic pets also discourage some from opting for policies. Strict underwriting practices to assess pet health risks upfront further shrink target markets for insurers. However, these restraints are gradually fading with growing pet humanization globally.
Segment Analysis
The Pet Insurance Market Demand is dominated by accident and illness segment. This segment accounts for over 60% of the total market share as it covers a wide range of unpredictable risks like injuries due to accidents, surgeries related to illness and so on. Pet owners opt for this segment the most as it provides maximum coverage against day to day risks and relieves the owners from shouldering high veterinary expenses. The other segments include accident only, other/additional benefits and mortality only.
Global Analysis
Regionally, North America holds the largest share in the pet insurance market owing to increased pet adoption and expenditure on pet care in countries like the US and Canada. Growing awareness about pet wellbeing and insurance has boosted the market growth. Asia Pacific is expected to witness the fastest growth during the forecast period. Rising disposable incomes, growing urban population and changing attitudes towards pet ownership in emerging economies like India and China offer huge growth opportunities. Countries in Europe and Latin America also demonstrate significant demand due to rising animal welfare concerns.
Get more insights on - Pet Insurance Market
Comments
0 comment