Asia-Pacific Pet Insurance Market Outlook, 2027

Asia-Pacific Pet Insurance Market Outlook, 2027

Pet insurance will cover, either entirely or in part, the often-expensive veterinary procedures. Pet insurance refers to an insurance policy bought by a pet owner that helps to lessen the overall costs of expensive veterinary bills. Such coverage is more or less similar to health insurance policies for humans. Pet insurance usually covers the often-expensive veterinary procedures, either entirely or partly.

The research report titled, “Asia Pacific Pet Insurance Market Outlook, 2027” by Bonafide Research categorizes the market to forecast the revenues and analyze the trends in each of the following segments: based animal type (Cat, Dog & others), by insurance type (Accidental and Illness & Accident only endorsement) by the end-user (Agency, Broker, Bancassurance, Direct writing) based on countries & major companies. The Asia Pacific Pet Insurance market was at a value of USD 0.38 Billion in the year 2016 with factors like an increasing number of pet adoption and rising awareness regarding pet insurance in the region. The past few years have observed a significant rise in the adoption of animals, including dogs and cats as not only the most preferred pets but are also known to improve the physical and mental health of humans. However, low adoption in emerging countries is a significant restraining factor in the region for the pet insurance market growth, resulting in the market growth anticipated at CAGR of around 14% till the year of 2027. Furthermore, rising number of pet insurance clients and rising per capita animal health expenditure will support the country growth. Over the past years, there has been a significant rise in the prevalence of chronic diseases in pets. Hence, the major factor driving the growth is the emergence of chronic condition in pet animal which helps the accident and illness segment to grow. However, the market dynamics are expected to take a turn and the accident-only segment is expected to grow over with a CGAR of above 20% in the forecasted years. The region being highly price-sensitive, the lifetime coverage segment is expected to be the most lucrative option for the region. Moreover, the adoption of pet health insurance is exploding in popularity because of a strong economy, improved consumer awareness, high disposable income, and easier claims processing across the world. The pet health insurance coverage is expected to reimburse the diagnostic testing and imaging (e.g., X-rays, ultrasound, and MRI), and it covers every accident and illness under one policy. Some of the most common diagnostic tests covered by pet insurance are radiographs, ultrasounds, CT scans, and MRIs.

The dog insurance segment accounted for the highest share in the region, holding more than 80% of the share in 2016. It can be attributed to the high healthcare cost associated with dogs as compared to other pets. Also, insurance companies offer policy coverage to a wider range of dog breeds including crossbreed, sheepdogs, exotic dogs that are pets. This is to allow the other animal insurance segment to grow with an optimal CAGR in the coming period. With the increasing number of private agencies, the segments of agency & brokers together rule the market with a share of more than 80%. Also, the private providers offer various novel pet schemes to retain consumers that will boost the segment growth. Furthermore, multi-pet insurance policies that include multiple pets in a single plan attract a large number of customers.

The region leading country China pet insurance market is set to observe around 11% through the forecasted period. The growth of all the regional markets can be owed to the growing pet adoption coupled with increasing awareness about their health. Furthermore, the rising number of pet insurance clients and rising per capita animal health expenditure will support the country's growth. Pet insurance is a relatively untapped market in the region which provides a substantial opportunity for market growth due to the increasing disposable income & willingness to spend more on pet care. The factors that are driving the market growth in China include an increasing number of pet adoption and rising awareness regarding pet insurance. Dogs have always been the preferred pets globally and account for a large chunk of the Chinese pet food revenue. China ranks third in terms of dog ownership. According to the State Council of China 2020, around 73.55 million households own a pet, of which 46.1% own dogs and 30.7% have cats.
Increasing pet adoption is also a major reason for the increasing pet dog population. In the total pet population, dogs accounted for 34.0%, and cats accounted for 20.0% in 2019. The increasing adoption of dogs by millennials as an asset has boosted pet insurance over the recent period. Furthermore, there is also an increase in the entry of new players, including China Continent Insurance and Taikang Insurance group. Thus, the rise in the adoption of pet animals and increasing awareness of pet insurance is expected to boost the growth of the Pet Insurance market over the forecast period. Furthermore, increasing spending capacity of people, rising knowledge about pet care, supportive initiatives by the government, and rising per capita animal health expenditure in developing countries such as India and China will support regional industry expansion. However, lack of awareness about various zoonotic diseases in developing countries, that can cause great harm, restricting the market growth to some extent. Along with this the high cost of the pet plans & lack of awareness is projected as major market restraints, the presence of key players in the market is to push the market growth in the coming period. Companies undertake various strategies such as mergers, collaborations, acquisitions, and geographic expansions to strengthen their market share.

Recent Developments
• In December 2021, Chewy Inc., a leading online destination for pet parents and partners, and Trupanion, Inc. Japan, an industry leader in medical insurance for pets, announced a partnership to offer an exclusive suite of pet health insurance and wellness plans to more than 20 million Chewy customers.
• In September 2021, Lemonade, the insurance company powered by AI and driven by social good, announced a new addition to Lemonade Pet, its pet health insurance product with super-fast everything.
• in August 2020, Bajaj Allianz General Insurance launched a pet dog insurance policy in India. The policy covers pet dogs over their lifetime from age 3 months to 10 years. This strategy is expected to enhance their service offering and expand its customer base in Indian market.

COVID-19 Impact
In a pandemic, telemedicine is being used to increase the number of veterinary practices, and precautionary lockdown measures are being implemented, with only critical cases being attended to. COVID-19, on the other hand, is having a slight negative impact on the pet insurance market, as the rates of diagnosis and treatment procedures are decreasing. This decreasing cost of the practice is steering the people away from opting for insurance in recent times

Major Companies Present in the Market
PetFirst Pet Insurance, Pet Plan Limited, PetSure (Australia) Pty Ltd, Trupanion, RSA groups, Oriental Insurance, Anicom Holdings, Inc., Tokio Marine & Nichido Fire Insurance Co.Ltd.

Considered in this report
• Geography: Asia-Pacific
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027

Countries Covered
• China
• Japan
• India
• Australia

Aspects Covered in this Reports
• Market Size by Value for the period (2016-2027F)
• Market Share by Animal Type (Cat, Dog & others)
• Market Share by Insurance Type (Accidental and Illness & Accident only endorsement)
• Market Share by End User (Agency, Broker, Bancassurance, Direct writing)
• Market Share by Region
• Market Share by Country
• Market Share by Company

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Finance & Insurance Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.