United Kingdom (UK) Pet Insurance Market Size, Trends, Competitor Dynamics and Opportunities, 2021-2026
Summary
This report analyzes the UK pet insurance market, looking at drivers of uptake. It explores the claims landscape in 2021, as well as upcoming regulatory changes. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within the space. The impact of factors including inflation and emerging technology such as AI on the pet insurance space are also examined.
The pet insurance market experienced an 11.7% increase in gross written premiums (GWP) in 2021, reaching a value of GBP1.4 billion. The number of policyholders increased by 4.5% in 2021 compared to the previous year. In 2021, only 21.7% of dogs and 10.9% of cats in the UK were insured - illustrating potential for the market to grow further in the coming years. Growth in the market was driven by a 4.5% increase in the number of policyholders and an 8.3% rise in average premiums. We forecast GWP to grow every year between 2021 and 2026f at a compound annual growth rate (CAGR) of 6.5%, with GWP reaching GBP1.9 billion in 2026f.
Scope
- Growth in 2021 was driven by the dog insurance market, which experienced an 8.5% increase in the number of policyholders. Accounting for 74.9% of GWP and 67.3% of policyholders in 2021, the dog segment continues to have the biggest influence on the UK pet insurance market. Dogs also accounted for 74% of claims notified.
- Cat insurance accounted for 18.7% of GWP and 28.3% of policyholders in 2021.
- Underwritten by Allianz, Petplan remained the market leader with 26.3% of total GWP in 2021.
- Understand the current and future size of the UK pet insurance market.
- Discover the impact of COVID-19 and how it has influenced trends in the market.
- Identify the top players, their products, and their strategies.
- Discover the impact the cost-of-living crisis will have on the pet space.
- Learn how the UK pet insurance market will evolve over the next five years.
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- Pet Insurance Market Dynamics
- The pet insurance market recorded double-digit growth in 2021
- Table Breakdown of the pet insurance market by product, 2021
- The increased number of policyholders and premiums led ton GWP growth in 2021
- Table Figure 1: GWP for the UK pet insurance market grew by 11.7% in 2021
- Table GWP in the pet insurance market, 2017–21
- There is room for growth in the number of policyholders
- Table Figure 2: The number of policyholders in the UK pet insurance market grew by 4.5% in 2021
- Table Figure 3: Dog insurance policies make up 67.3% of the total market
- GWP is dominated by dog insurance
- Table Figure 4: Dogs accounted for 74.9% of pet insurance GWP in 2021
- Average premiums vary by type of pet
- Table Figure 5: Other pet premiums remained the most expensive across the review period
- The number of claims increased in 2021
- Table Figure 6: The total number of reported claims increased to a record high in 2021
- Gross claims in the pet insurance market increased
- Table Figure 7: Gross claims incurred increased by 9.2% in 2021
- Table The claims landscape in the pet insurance market, 2017–21
- The average claim varies considerably depending on the type of pet
- Table Figure 8: The average claim for a dog is considerably higher than for a cat
- Table Average claims cost by pet, 2017–21
- Table Figure 9: Consumer price inflation will peak in 2022
- The UK pet population continues to grow after the COVID boom
- Table Figure 10: There is considerable potential for growth in the pet insurance market
- Table Figure 11: There is room for growth for tracking technology to monitor pets in the UK
- The pet insurance market recorded double-digit growth in 2021
- The Structure of the UK Pet Insurance Market
- Allianz continues to dominate the market
- Table Figure 12: Allianz was responsible for the largest share of premiums in the pet insurance market in 2021
- Table Figure 13: Allianz accounted for the most contracts in 2021
- Policy features from the top providers
- Table Petplan's pet insurance products
- Table Animal Friends' pet insurance products
- Table Admiral's pet insurance products
- Revolut enters the pet insurance market
- The market is beginning to diversify
- Opportunities exist in the exotic pet market
- Allianz continues to dominate the market
- The Market Going Forward
- The market is set to continue growing
- Table Figure 14: The pet insurance market is set to reach almost GBP2 billion over the forecast period
- Table The split of the pet insurance market, 2021–26f
- Dog insurance will remain the dominant segment
- Table Figure 15: There will be 5.3 million pet insurance policyholders by 2026f
- Table Number of pet insurance policyholders by pet type (000s), 2021–26f
- The cost of claims will continue to grow
- Table Figure 16: The average claims payout is expected to exceed GBP1,300 by 2026f
- Table The cost and number of claims within the total pet insurance market, 2021–26f
- Dog insurance claims incurred will reach GBP918 million by 2026f
- Table Figure 17: Average claims payouts for dogs are set to experience sharp growth
- Table The cost and number of claims within the dog insurance segment, 2021–26f
- Cat insurance gross claims incurred will reach GBP179 million by 2026f
- Table Figure 18: The average cat insurance claims payout will see steady growth up to 2026f
- Table The cost and number of claims within the cat insurance segment, 2021–26f
- The cost of claims for other pets will pose the greatest financial burden on insurers
- Table Figure 19: The average cost of other pet claims will increase by 65.7% over the forecast period
- Table The cost and number of claims for other pet insurance segment, 2021–26f
- Attracting new customers will be key for insurers
- Regulation and technology
- AI can help prevent fraudulent claims
- The power of social media
- The market is set to continue growing
- Appendix
- Abbreviations and acronyms
- Methodology
- Table Figure 20: Forecasting methodology
- Secondary sources
- Further reading
- About GlobalData
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