The Global Pet Insurance Market was valued US$ 4.3 Billion in 2020 is expected to reach US$ 7.7 Billion by 2027, with a growing CAGR of 8.6% during the forecast period (2021-2027).
Pets are one of the most lovable members of the family. Pets are adopted for various reasons like for security of property or companionship. Hence, it becomes the duty of pet owner to take care of pet with respect to health. In case of pets, especially dogs' face similar health issues as that of human and require proper time to time check-ups and vaccinations. In order to lessen the cost burden of owners, pet insurance is considered. Pet insurance is the policy that covers all healthcare or veterinary expenditure of pet animals. This policy coverage is similar to that of human insurance. The most common policy coverages considered is accidents and illness. This covers entire veterinary procedures of pets. Moreover, the increase in healthcare expenditure, adoption rate of pets and awareness regarding insurance policies defines the growth of pet insurance market. Other factors like increase in per capita income, governments regulations affect the growth of pet insurance market. Pet insurance policies provides the reimbursement of cost expelled in diagnostics tests like X-rays, MRI and ultrasound tests and this provides cost benefits to the owner of the pet.
Based on policy coverage type, pet insurances are broadly classified into accidents & illness, only accidents, and others. Accidents & illness held maximum market share in pet insurance market. Majority of common illness and accidents are covered in this policy and this policy is considered to be favourable for pet animals and helps to pull the market revenue.
Based on animal types, pet insurance is broadly segmented into dogs, cats, and others animals. Dog is the most common pet owned by the population across globe. According to the data of 2019, “The Federation Cynologique Internationale” the total number of dogs kept as pet is more than 9,950,000. Therefore, there is high demand for insurance for dogs across the globe. The cost of treatment associated with dogs are comparatively higher, this factor contributes to the acceptance of pet insurance among dogs. The severity of diseases associated with dogs are somewhat similar to that of humans, which need immediate treatment and involve high-cost treatment. Hence, these insurance help to lessen the cost burden for owners.
Based on provider types, pet insurance market is segmented into private and public providers. Development of innovative pet insurance schemes, in order to increase the adoption rate and awareness related to availability of healthcare expenditure available for pets, helps to fuel the private segment and increase share during forecast period. Private insurance companies offers maximum coverage with less premium so that one can afford to pay and this triggers the growth in pet insurance industry revenue.
On the basis of regions, North America is expected to hold maximum market share during the forecast period. The number of pet adopters are high in this region, thus tends to increase growth of market. According to American Society for Prevention of Cruelty to Animals suggests that, more than 3.2 million shelter animals are adopted in every year. Out of which, 1.5 million are dogs. Thus, there is huge pet adoption in this region which stimulate the industry value. Another factor which affected the growth of industry is increasing population with concern for pet healthcare, act as a driver for market growth.
Company Profiles and Competitive Intelligence: Petplan Limited, Trupanion, Inc., Nationwide Mutual Insurance Company., Hartville Group Inc., Pethealth Inc., Petfirst Healthcare LLC, Royal & Sun Alliance Insurance Company of Canada, Inc., Embrace Pet Insurance Agency, LLC, Direct Line Insurance Group Plc, and Petsecure are some of the key players operating in the pet insurance industry.
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Challenges
Covid-19 has highly affected the industries in terms of growth, economy, health and mental wellbeing of every individual. In this challenging situation, every industry is trying to give best services in terms of quality and safety. Various pet associated companies are taking extraordinary care of pets during pandemic times. Many veterinary hospitals and clinics remain to be close due to lockdown and restriction on movement. Insurance companies are trying to innovate and modify the policy coverages and policies depending upon the incidences of health conditions. Companies are focussing on providing solutions to the pet owners and spreading awareness regarding the cost reimbursement available in the market. However, due to lockdown in many countries, the industry impacted negatively during this time.
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