United Kingdom (UK) Pet Insurance Distribution Dynamics and Future Market, 2022 Update

United Kingdom (UK) Pet Insurance Distribution Dynamics and Future Market, 2022 Update

Summary

This report explores how purchasing preferences have changed over time in the UK pet insurance market. It discovers what is most influential to customers when purchasing a pet insurance policy and reveals the most popular providers in the market. New trends and innovations are highlighted as well as the key factors that will influence the market over the next few years.

Insurers and price comparison websites (PCWs) remained the top two channels in 2022, accounting for over 60% of pet insurance purchases in the year. PCWs declined by 2.1 percentage points (pp) and 4.0pp for dog and cat insurance, respectively. The affinity channel overtook the share of PCWs in 2022 for cat insurance to claim second place.

Scope

• Petplan and Animal Friends were the two insurers with a double-digit market share in 2022, together accounting for 37.4% of the pet insurance market.
• Compared to 2021, Petplan increased its market share by 2.2pp, while Animal Friends’ share decreased by 2.4pp in 2022. Among the top 10 providers, seven of them increased their market shares compared to 2021.
• In 2022, the share of co-insurance decreased by 3.4pp for dog insurance and 3.7pp for cat insurance compared to 2021.
• With greater levels of uncertainty remaining in the market due to the economic environment and the cost-of-living crisis, co-insurance will help insurers avoid switching by customers who feel their premium is too expensive, as co-payments lower policy prices.

• Understand consumer purchasing decisions and how these will influence the market over the next few years.
• Improve customer engagement by recognizing what is most important to them and how insurers can adapt their products and services to meet their needs.
• Compare the Net Promoter Scores of key insurance providers.
• Discover which providers lead the way in the pet insurance space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behavior.