UK Pet Insurance: Market Dynamics and Opportunities 2024
Summary
This report provides an overview and analysis of the state of the UK pet insurance market. It examines the size of the market, the nature of the claims landscape, as well as upcoming regulatory changes. Incumbent competitors are analyzed and compared; the report also provides a forecast of market size through to 2028, while examining key future impactors in the market.
In 2023, the pet insurance market saw gross written premiums (GWP) rise by 7.7% to GBP1.75 billion. Additionally, there was an 8.2% increase in the number of policyholders compared to 2022. Notably, only 25% of dogs and 12.1% of cats were insured in 2023, indicating substantial growth potential for the market in the coming years. Likewise, our forecasts indicate that GWP will rise each year from 2023-28, with a compound annual growth rate (CAGR) of 6.1% over this period. By 2028, GWP is projected to reach GBP2.35 billion. While some consumers canceled their insurance policy in 2023 due to the cost-of-living crisis, we anticipate the pet insurance market to remain resilient. This is because rising veterinary expenses over 2024 and beyond may compel more risk-averse consumers to opt for insurance as a means of managing the financial burden associated with one-off vet bills
Key Highlights
- The dog insurance market accounted for the largest number of policyholders in the total market (69.3%) in 2023. As a result, dog insurance also accounted for the lion’s share of GWP (76.4%) and claims (77.6%).
- Cat insurance accounted for 18.4% of GWP and 27.5% of policyholders in 2023, while other pets accounted for 5.1% of GWP and 3.3% of policyholders.
- Average premiums rose across the board, with a 5.0% increase for dog insurance, a 4.9% increase for cat insurance, and a 7.5% increase for other pet insurance.
- The total number of reported claims increased by 31.7% in 2023, the highest figure since the Association of British Insurers started collecting data.
- The dog insurance market accounted for the largest number of policyholders in the total market (69.3%) in 2023. As a result, dog insurance also accounted for the lion’s share of GWP (76.4%) and claims (77.6%).
- Cat insurance accounted for 18.4% of GWP and 27.5% of policyholders in 2023, while other pets accounted for 5.1% of GWP and 3.3% of policyholders.
- Average premiums rose across the board, with a 5.0% increase for dog insurance, a 4.9% increase for cat insurance, and a 7.5% increase for other pet insurance.
- The total number of reported claims increased by 31.7% in 2023, the highest figure since the ABI started collecting data.
- Understand the current and future sizes of the UK pet insurance market.
- Discover the impact of inflation and vets’ costs on trends in the market.
- Identify the top players, their products, and their strategies.
- Learn how the UK pet insurance market will evolve out to 2028.
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- Pet Insurance Market Dynamics
- The pet insurance market grew by 7.7% in 2023
- Table Breakdown of the pet insurance market by product, 2023
- Increases in the number of policyholders and premiums led to GWP growth in 2023
- Table Figure 1: UK pet insurance GWP grew by 7.7% in 2023
- The number of pet insurance policyholders continued to see solid growth in 2023
- Table Figure 2: The number of policyholders in the UK grew by 8.2% in 2023
- Table Figure 3: Dog insurance policies accounted for more than two thirds of total policyholders in 2023
- Table Figure 4: Inflation is steadily falling
- Dog insurance remains the dominant component of GWP
- Table Figure 5: Dogs account for 76.4% of pet insurance GWP in 2023
- Average premiums vary by type of pet
- Table Figure 6: Average premiums vary significantly by pet
- Table Figure 7: The cost of veterinary services and other services for pets peaked in 2023
- The number of claims notified has reached a new record
- Table Figure 8: The number of claims notified reached an all-time high in 2023, increasing by 31.7%
- Gross claims incurred continued to rise in 2023, reaching almost GBP1.2 billion
- Table Figure 9: Gross claims incurred increased by 12.3% in 2023
- Table The claims landscape in the pet insurance market, 2019-23
- The average claim varies considerably depending on the type of pet
- Table Figure 10: The average dog claim fell by 15.5% in 2023, the largest decrease on record
- Table Average claims cost by pet, 2019-23
- Table Figure 11: There is room for growth for tracking technology to monitor pets in the UK
- The pet insurance market grew by 7.7% in 2023
- The Structure of the UK Pet Insurance Market
- Allianz remains the key player, while RSA exits the market
- Table Figure 12: Allianz was responsible for the largest share of premiums in the pet insurance market in 2023
- Table Figure 13: Allianz accounted for the most contracts in 2023
- Policy features from the top providers
- Table Petplan's pet insurance products
- Table Animal Friends' pet insurance products
- Table Tesco Bank's pet insurance products
- PetPartners launches OnePack Plan, an employer-based group insurance offering
- Allianz remains the key player, while RSA exits the market
- The Market Going Forward
- The market is set to continue growing
- Table Figure 14: GWP will grow to just under GBP2.4 billion by 2028
- Table Figure 15: There is potential for significant growth in the pet insurance market
- Dog insurance will remain the dominant segment
- Table Figure 16: There will be almost 5.9 million pet insurance policyholders by 2028
- Table The split of the pet insurance market, 2023-28f
- The power of social media
- Reducing costs will be key for pet insurers
- The market is set to continue growing
- Appendix
- Abbreviations, acronyms, and initialisms
- Methodology
- Table Figure 17: Forecasting methodology
- Secondary Sources
- Further reading
Research Assistance
Download our eBook: How to Succeed Using Market Research
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook