Global Pet Insurance Market Outlook, 2027

Global Pet Insurance Market Outlook, 2027

Pet insurance is defined as an insurance that can be paid partly or totally for the veterinary treatment of the insured pet. Pet insurance services involve policy coverage for pet accidents, injuries and for pet illnesses. Also, various pet insurance providers are offering innovative insurance coverage policies for multiple pets to attract large customer base. Furthermore, with increasing healthcare cost for pets, the pet owners are readily adopting pet health insurance, thereby fostering the market growth. Standard diagnosis coding system has highly evolved for maintaining human medical records in developed nations such as Italy, England, United States and Canada. This simplifies the overall process of claiming reimbursement and availing the insurance benefits that are offered by federal governments of respected countries.

The report titled, “ Global 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 region, countries & major companies. In the year 2016, the value of the pet insurance market was at USD 3.46 Billion, globally. The factors that are driving the market growth include an increasing number of pet adoption and rising awareness regarding pet insurance. Also, various pet insurance providers are offering innovative insurance coverage policies for multiple pets to attract a large customer base. Furthermore, with increasing healthcare costs for pets, pet owners are readily adopting pet health insurance, thereby fostering market growth. With the increasing pet adoption, the market is expected to grow with an anticipated CAGR of more than 13% in the forecasted period. 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. Pet insurance is commonly selected by owners to reduce the burden of costs associated with veterinary services. Such schemes are offered by several public and private service providers for different companion animals such as dogs and cats, among others. Also, various innovative pet insurance coverage policies for multiple pets are offered by the services providers to attract a larger customer base. Thus, to reduce the rising burden of pet healthcare cost, the pet insurance industry is expected to register robust market growth over the forecast period.

The accident & illness policy segment dominates the market with a high share of over 90% in 2016, aided by the comprehensive nature of the insurance policies. The customers prefer this policy over the accident only& endorsements segment, as it covers the majority of illnesses and accidents. This is undoubtedly the most favorable policy for young animals and thus driving the market. However, the market is expected to gain more popularity in the coming years and grow with a CAGR of 21%. Moreover, high veterinary treatment and diagnostic costs coupled with an increase in awareness regarding the insurance will further foster the market value. In the recent past, there has been a high adoption rate especially of dogs; due to this, the dog insurance covered an approx. 3/4th of the total market in 2020. Dogs get cancer almost at the same rate at which humans get, while cats get affected by cancer in fewer numbers. According to the Veterinary Cancer Society, globally, cancer is the leading cause of death in 47% of dogs over 10 years. The trend such as pet humanization is driving the pet insurance market. In this era, people are inclining towards the culture of nuclear families and hence it is resulting in the demand for pet adoption as people have started accepting pets as their family members even in the developing countries. There is an exponential surge in pet cat adoption which is to have a direct impact on cat pet insurance too, growing with a significant CAGR.

In terms of end-users, the market is led by the agencies, which held a share of over 43% in the year 2020. Usage of various strategies such as digital marketing and competitive pricing of the monthly premiums are the major factors leading to the market growth. Also, the development of innovative insurance schemes coupled with various efforts to increase customer awareness and satisfaction will further fuel the segment expansion in the future. Thus, the direct writing providers who offer maximum coverage with minimum premiums will further impel the industry revenue, with a significant CAGR during the forecast period.

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. 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.

Standard diagnosis coding system has highly evolved for maintaining human medical records in developed nations. This simplifies the overall process of claiming reimbursement and availing the insurance benefits that are offered by federal governments. However, there is a lack of standardized pet health codes. Most of the veterinary records are free text and do not have a standard diagnosis coding. This is one of the major barriers in using veterinary records for claiming pet insurance, thus hampering the industry growth. Europe, leads the global pet insurance market, while the rising trend of pet acceptance in the developing countries in Asia will further augment the regional growth. Even though 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.

Recent Developments
• In December 2021, Trupanion and Chewy partnered to offer exclusive suite of pet wellness and health insurance plans to more than 20 million Chewy customers. This strategic partnership was aimed to offer customers both wellness plans, preventive care and comprehensive insurance plans for illness, accidents, and chronic conditions. This partnership enhanced the product portfolio of healthcare services and products.
• In September 2021, Lemonade, the insurance company powered by AI, launched the new pet health insurance (Lemonade Pet) for puppies and kittens.
• 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.
• In October 2019, Warburg Pincus acquired Petplan. The acquisition provided Petplan the access to capital and resources of Warburg Pincus. This acquisition enabled Warburg Pincus to make huge investment in the pet insurance marketplace to boost PetPlan’s operations.

COVID-19 Impact
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.

Companies Included:
Trupanion, Pethealth Inc, Ipet Insurance Co. Limited, Petsure (Australia) Pty Limited, Petfirst Healthcare Llc, Anicom Holding, Agria Pet Insurance Limited, Crum Forster Pet Ins Group, Petplan Limited, Oriental Insurance, Anicom Holding Inc., Tokio Marine & Nichida Fire Insurance Co.Ltd.

Considered in the report
• Geography: Global
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027

Regions covered:
• North America
• Europe
• Asia
• Latin America
• Middle East & Africa

Aspects covered in the report
• 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.