United Kingdom (UK) Pet Insurance Market Dynamics, Trends and Opportunities
Summary
This report provides comprehensive analysis of the UK pet insurance market. It explores drivers of uptake and the claims landscape, as well as looking at the broader pet market and upcoming regulatory changes. Incumbent competitors are analyzed and compared, alongside relevant newcomers and insurtechs. In addition, the report examines future impactors in the market, including inflation and emerging technologies such as artificial intelligence.
In 2022, the pet insurance market saw gross written premiums (GWP) rise by 12.8%, amounting to a market worth GBP1.58 billion. Additionally, there was an 11.1% increase in policyholders compared to 2021. Notably, only 24.2% of dogs and 11.9% of cats were insured in 2022, indicating substantial growth potential for the market in the coming years. Our forecasts indicate that GWP will rise each year from 2022 to 2027, with a compound annual growth rate (CAGR) of 4.8% over this period. By 2027, GWP is projected to reach GBP1.99 billion, primarily driven by rising premiums, which are unavoidable due to the increasing cost of veterinary care.
Scope
- The dog insurance market accounted for the largest number of policyholders in the total market (69.2%) in 2022. As a result, dog insurance also accounted for the lion’s share of GWP (78.5%) and number of claims (77.7%).
- Cat insurance accounted for 18.5% of GWP and 27.9% of policyholders in 2022, while other pets accounted for 3% of GWP and 2.9% of policyholders.
- Average premiums for dogs and cats rose marginally, while average premiums for other pets fell by 19.8% from 2021 to 2022.
- The total number of reported claims increased by 28.4% in 2022, reaching a record high in the process.
- Understand the current and future size of the UK pet insurance market.
- Discover the impact of the cost-of-living crisis and how it has influenced trends in the market.
- Identify the top players, their products, and their strategies.
- Learn how the UK pet insurance market will evolve out to 2027.
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- Pet Insurance Market Dynamics
- The pet insurance market grew by 12.8% in 2022
- Table Breakdown of the pet insurance market by product, 2022
- The increased number of policyholders led to GWP growth in 2022
- The number of pet insurance policyholders recorded double-digit growth in 2022
- Table Figure 1: UK pet insurance GWP grew by 12.8% in 2022
- Table Figure 2: The number of pet insurance policyholders continued to grow in 2022
- Table Figure 3: Dog insurance accounted for more than two thirds of total policyholders in 2022
- Table Figure 4: Inflation is expected to have peaked in 2022
- Dog insurance continues to dominate GWP
- Table Figure 5: Dogs accounted for 78.5% of pet insurance GWP in 2022
- Average premiums vary by type of pet
- Table Figure 6: The average premium for other pets fell by 19.8% in 2022
- Table Figure 7: The cost of veterinary services and other services for pets is rising
- The number of claims increased to record highs in 2022
- Table Figure 8: The total number of reported claims increased by 28.4% in 2022 to reach a record high
- Table Figure 9: The total confirmed value and volume of fraudulent claims reached record highs in 2022
- Gross claims surged above GBP1 billion
- Table Figure 10: Gross claims incurred increased by 16.8% in 2022
- Table The claims landscape in the pet insurance market, 2018–22
- The average claim varies considerably depending on the type of pet
- Table Figure 11: The average dog claim fell by 8.5% in 2022 – the first decrease since 2017
- Table Average claims cost by pet, 2018–22
- Table Figure 12: There is room for growth for tracking technology to monitor pets in the UK
- The pet insurance market grew by 12.8% in 2022
- The Structure of the UK Pet Insurance Market
- Allianz continues to dominate the market
- Table Figure 13: Allianz was responsible for the largest share of premiums in the pet insurance market in 2022
- Table Figure 14: Allianz accounted for the most contracts in 2022
- 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 an employer-based group pet insurance offering
- Allianz continues to dominate the market
- The Market Going Forward
- The market is set to continue growing
- Table Figure 15: The pet insurance market is set to reach just under GBP2 billion by 2027
- Table Figure 16: There is potential for growth in the pet insurance market
- Dog insurance will remain the dominant segment
- Table Figure 17: There will be 4.6 million pet insurance policyholders by 2027
- Table The split of the pet insurance market, 2022–27
- Pet insurers could partner with insurtechs to combat fraudulent claims
- Consumers are increasingly downloading insurance apps
- Social media can be a powerful tool for insurers
- The market is set to continue growing
- Appendix
- Abbreviations, acronyms, and initialisms
- Methodology
- Table Figure 18: Forecasting methodology
- Secondary sources
- Further reading
- About GlobalData
- Contact Us
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