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Pet Insurance Market

Pet Insurance Market Analysis by Coverage Type (Accident, Accident & Illness), By Animal Type (Cats, Dogs), By Sales Channel Type (Bancassurance, Direct, Broker, Agency) and By Region- 2022 to 2032

Analysis of Pet Insurance market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Global Pet Insurance Industry Outlook (2022-2032)

The global market for pet insurance was valued at US$ 8.5 Bn in 2021, and is expected to increase at a steady CAGR rate of 16.5% during the forecast period. As per this growth rate, this industry can be projected to reach a market size of worth US$ 45.6 Bn by 2032.

At the end of 2022, this market is expected to reach a market valuation of US$ 9.9 Bn by 2022.

Report Attributes

Details

Market Value for 2021

US$ 8.5 Bn

Expected Market Size in 2022

US$ 9.90 Bn

Projected Market Valued in 2032

US$ 45.60 Bn

Growth Rate (2022-2032)

16.5% CAGR

Market Share of Europe during 2022

43%

Revenue Share of accident and illness segment

85%

Key Companies Profiled

  • Trupanion, Inc.
  • Deutsche Familienversicherung AG (DFV)
  • Petplan (Allianz)
  • Animal Friends Insurance Services Limited
  • Figo Pet Insurance, LLC
  • Direct Line
  • PetWatch
  • Embrace Pet Insurance Agency, LLC
  • Anicom Insurance
  • Agria Pet Insurance Co., Ltd.

Pet population growth, pet insurance adoption in underpenetrated markets, increasing veterinary care costs, initiatives by key companies, and humanization of pets are some of the key factors driving this market.

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Demand Analysis of Pet Insurance 2015-2021 vs. Market Outlook 2022-2032

As per Fact.MR- a market research and competitive intelligence provider- demand for pet insurance inclined at a 15% CAGR between 2015 and 2021. Growth of the industry is majorly attributed to increased pet ownership- both across the developed and developing regions. This is majorly in response to the increased humanization of animals and extensive focus on animal welfare.

As a result of the COVID-19 pandemic, pet owners, veterinarians, veterinary hospitals, and animal health companies faced several challenges, as the imposition of lockdowns prevented frequent visits to brick and mortar insurance providers. Nevertheless, the industry was quick to respond to the pandemic by deploying supportive measures to ensure access to veterinary care and other services. The pandemic also caused pet parents to realize the importance of getting a pet insurance policy to reduce financial risk.

A survey conducted by Petplan, a U.K. market leader, found that pet ownership increased during 2020. The most popular pet was the dog, followed by the cat. About 47% of respondents purchased a pet for the first time, and overall only about 26% of pet owners in the U.K. bought pets during the COVID-19 pandemic. Getting a pet was primarily motivated by work-from-home conditions, the desire for companionship, and more time spent at home because of lockdown and movement restrictions. From 2022 to 2032, pet insurance demand is forecast to surge nearly 5x.

Pet Insurance Market

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What are the specific drivers of the Pet Insurance Market?

Rising awareness towards feline and dog-related diseases will bolster the growth

Increasing prevalence of feline and canine diseases is a major driver of this market. Pet insurance is expected to grow in the near future due to the escalating demand to limit out-of-pocket expenditures on serious medical issues, such as accidental injuries and cancer. Additionally, pet insurance demand is expected to increase as there is a growing demand for veterinary services.

In addition to capital investment, veterinary services frequently require specialized veterinarians, technicians, and specialized diagnostic equipment. As a result, pet owners may have to pay a higher amount for treatment, which could make them more interested in pet insurance.

Approximately 3.45 million pets were insured across North America in 2020, according to the North American Pet Health Insurance Association (NAPHIA). In 2019, 2.81 million pets were insured in North America, a significant increase.

Rising Pet Ownership and Increasing Disposable Income to accelerate the Market Growth

Several factors are driving the adoption of pet health insurance around the world, including an improving economy, increased consumer awareness, and easier claims processing. Pet health insurance is expected to reimburse diagnostic testing and imaging (e.g. X-rays, ultrasounds, and MRIs), and it covers every illness and accident.

The report ''Pets in Australia: A national survey of pets and people'' in 2019 reveals that expenditure on pets has risen substantially due to the increasing adoption of pets. According to the report, pet owners spend more than AUD 13 billion annually to keep their pets fed, healthy, and well-equipped, and food and veterinary services account for half of all ongoing expenses.

Nearly 2.6 billion of this amount was spent on veterinary services in the country. Another important factor affecting animal health expenditure is the rise in disposable income. In addition to the per capita animal health expenditure, industries across the globe also spend more on diagnosing and treating veterinary diseases.

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Country-wise-Analysis

How will the market emerge in the European region during the forecast period?

By the end of 2022, Europe will hold the largest revenue share of over 44% in the pet insurance market. Pet insurance adoption has increased due to rising pet ownership and the presence of key companies. The Department of Clinical Veterinary Science and the Pet Food Institute estimate that 23.0% of pets in the U.K. and 30.0% of pets in Sweden were covered by pet insurance policies by 2017 and that penetration was expected to rise in the future.

Several key market players are headquartered in the U.K., such as Petplanare, while DFV has its headquarters in Germany. As a result, these companies implement various strategies to increase their market share, thus contributing to the growth of the region.

What will be the market scope in the North American region?

A high pet ownership rate, awareness, increasing pet insurance, and technological advancements in the diagnostics field are the major driving factors in the United States. In terms of socio-economic conditions, the country is well-positioned to provide economic support to the market in terms of production and end-users. North America is forecast to accumulate 40% revenue.

 According to the American Pet Products Association (APPA), 67% of US households, or 85 million families, own a pet. According to the data published by the APPA in 2018, the total pet healthcare expenditure would reach USD 75.38 Bn by 2020, whereas the expenditure in 2019 will be USD 69.51 Bn.

How will the market in the APAC region emerge during the forecast period?

During the forecast period, 2022-2032, the Asia Pacific region is projected to grow at the fastest rate of over 18%. The growth in pet adoption is a result of the emergence of the pet market and the development of the economy in the region. The market in the region is also driven by increased awareness of veterinary health and improved veterinary healthcare infrastructure.

Category-wise Insights

What can be expected from the accident and illness segment during the forecast period?

In 2022, the accident and illness segment is projected to hold the largest revenue share of 85%. Furthermore, it is expected to experience the fastest CAGR in the next few years. In addition to high veterinary treatment and diagnostic costs, an increase in companion animal ownership, and greater awareness of pet insurance, are contributing factors to this growth.

Policies covering accident and illness are typically offered by pet insurance companies. These provide coverage for a wide range of conditions including acute and chronic diseases, medications, diagnostic tests, and more. Pet owners are expected to benefit most from accident and illness insurance policies since they provide comprehensive coverage.

Why will Pet Insurance for Dogs Experience Maximum Demand?

The dogs segment is likely to dominate the market in 2022, accounting for more than 50% revenue. A growing pet adoption rate, expanded insurance service offerings, and rising disposable incomes in key markets are factors contributing to this increase.

According to FEDIAF, there were around 88.0 million households with pets in the EU by 2020. About 89 million dogs are estimated to have been in those households. In the future, the growing pet population across the region and the availability of a range of pet insurance policies will fuel market growth.

What will be the Outlook of the Direct Sales Segment?

The direct sales segment dominated the market in 2021 and is projected to hold the highest revenue share of 34% in 2022. This can be attributed to the high rate of direct sales strategies employed by key pet insurance. As an example, Deutsche Familienversicherung AG reported that direct sales accounted for 87.3% of the company's new business during HY2020.

Furthermore, the company reported an increase in online sales of 21.4% compared to last year. Another key market player reported that direct sales accounted for about 61% of its Personal Lines insuranceAutomobile, household, and pet insurance are all part of Peplan's personal lines segment.and pet insurance.

Competitive Landscape

There is a high level of fragmentation and competitiveness in the pet insurance market. To capture a larger share of the market, players implement various strategic initiatives, such as launching new policies, forming partnerships and collaborations, and expanding regionally.

  • Vetter Software, which provides technology solutions for the animal healthcare industry, signed a partnership agreement with Trupanion in June 2020. As part of this partnership, Vetter Software's cloud veterinary practice management platform software integrated with Trupanion's software, enabling direct payments to veterinarians at the time of checkout.
  • Through its specialty insurance business segment, AXIS Insurance, AXIS Capital Holdings Limited entered the market by partnering with Managing General Underwriter Petplan in November 2021. Its Accident and Health unit partnered with Petplan in support of its growth objectives.

Key Segments Covered in the Pet Insurance Industry Survey

  • By Coverage Type

    • Accident Only
    • Accident & Illness
    • Other Coverage Types
  • By Animal Type

    • Cats
    • Dogs
    • Other Animal Types
  • By Sales Channel Type

    • Bancassurance
    • Direct
    • Broker
    • Agency
    • Other Sales Channels

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The pet insurance market is likely to acquire a global market value of US$ 9.9 Bn by 2022

From 2015 to 2021, pet insurance demand expanded at a CAGR of 15%, as per Fact.MR

During the forecast period, the pet insurance market is expected to grow with a 16.5% CAGR

Fact.MR anticipated pet insurance demand to be valued at US$ 45.6 Bn by 2032

Pet insurance for dogs is likely to account for 50% of the global market demand

The European market will be leading the market during the forecast period with a 44% global market share.

The APAC region is projected to expand at a CAGR of more than 18% during the forecast period.

The direct sales segment is also expected to gain almost 34% share of the global market

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