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Pet Insurance Market By Policy Coverage (Accident and Illness, Accident Only, Others) By Animal Type (Dogs, Cats, Others) By Sales Channel (Broker, Agency, Others) - Growth, Future Prospects And Competitive Analysis, 2016 - 2028

What is the Percentage of Pets Insured Globally? 

The global market for pet care currently has a pet insurance share of between 3 and 4 percent. The increasing pet population, acceptance of pet insurance in developing markets, rising veterinary care costs, and greater animal humanization are all factors driving the worldwide pet insurance industry.

What is the Market Size of Pet Insurance in terms of value?

Global Pet Insurance Market is projected to increase at a significant CAGR of 16.3% in the coming years. In 2021, the global pet insurance market was valued at USD 8.1 Billion and is projected to reach at the value of USD 20 billion by 2028. Therefore, the demand for pet insurance is projected to increase substantially in the coming years and is presumed to generate revenue opportunities for the key industry players worth USD 11.9 billion during the forecast period between 2022 and 2028.

pet-insurance-market

Interesting Facts about Pet Insurance Industry

  • The worldwide pet insurance market is expanding as a result of rising and increasing demand for market plans for pet insurance and the rise in demand for financial security in the event of surges in uncertainties.
  • The growth of the pet insurance industry may be hampered by the developing regions' low awareness about pet insurance plans and services. 
  • The Europe region led the worldwide pet insurance market in terms of volume and value in 2021, and it is anticipated that it will hold this position throughout the forecast period.

Who are the Top 10 players/companies in the pet insurance market in terms of value?

The key players in the global pet insurance market in terms of value include Embrace Pet Insurance Agency, LLC, Royal & Sun Alliance (RSA), Figo Pet Insurance LLC., Pet Assure Corp., Hartville Group, Ipet Insurance, Nationwide, PetFirst, Pets Best Insurance Services, LLC, and Trupanion. For increased market penetration of pet insurance and to increase their competitive market share on a global scale, these leading players are focusing on new Sales Channel developments as well as technical innovation. Additionally, several regional and national players are investing significantly to diversify their Sales Channel offerings and increase sales. For instance, AXIS Insurance, the specialty insurance division of AXIS Capital Holdings Limited, joined forces with Managing General Underwriter Petplan to enter the market in November 2021. Through its Accident and Health division, the company collaborated strategically with Petplan in order to further its growth goals. Trupanion and Vetter Software, a developer of technological solutions for animal healthcare, entered into cooperation in June 2020. This collaboration comprised a connection between the Trupanion software, which permits direct payment to the veterinarian at checkout, and the cloud-based veterinary practice management platform from Vetter Software.

Who are the Top 10 Countries in the Pet Insurance Market?

The major countries in the global pet insurance market are China, India, Australia, the U.S., Canada, the U.K., Germany, France, Italy, and Sweden. The United Kingdom offered its first pet insurance policy in 1947, and the nation has since witnessed a substantial expansion of the pet insurance industry. In order to enhance their sales, reputable pet insurance firms in the U.K. concentrate on the greatest industry standards. Although some insurance in the UK covers all vet costs, other times this may vary depending on the circumstances. In the UK, pet insurance providers frequently provide customers the option of paying an "extra," much like auto insurers do. The price of excess fees could range from £40 to £100. The pet insurance industry in the United Kingdom is anticipated to grow due to rising pet obesity rates. 

Which is the Key Policy Coverage in the Pet Insurance Market?

In 2021, the accident and illness category dominated the market and accounted for 84.0 percent of total revenue. In the upcoming years, it is anticipated to see the fastest CAGR. The main drivers of the pet insurance industry are high veterinarian treatment and diagnostic expenses, an increase in the number of companion animals, and more knowledge about pet insurance. Pet insurance providers often provide accident and illness coverage. These policies cover a range of medical issues, including drugs, diagnostic procedures, and acute and chronic illnesses. The segment is expected to grow at the fastest rate in the coming years because these policies offer comprehensive coverage to pet owners.

On the other hand, it is anticipated that Europe will experience a stronger uptake of the others segment, which includes liability insurance Sales Channels among other things. This is because certain nations, like Germany, require dog liability insurance for pet owners. For instance, Luko provides dog liability insurance in France, Germany, and Spain, among other European nations. Up to 30 million euros in bodily or material losses caused by pets are covered under the coverage for pet owners.

What are the Major Driving Factors for Pet Insurance Market?

Major market drivers include the expanding adoption of pets and the rising prevalence of feline and canine-related disorders. Additionally, it is projected that the rising demand for pet insurance would boost the market growth in the near future to help reduce out-of-pocket expenses for significant medical concerns, such as accidental injuries and cancer. Additionally, there is a rise in the need for veterinary hospitals, which is thought to be a factor in the demand for pet insurance. In addition to requiring expert veterinarians, knowledgeable technicians, and specially created diagnostic equipment, veterinary services are frequently capital intensive. Due to the potential increase in treatment costs for pet owners, there may be greater demand for pet insurance plans.

What are the Major Restraints for Pet Insurance Market?

The growth of the pet insurance industry may be hampered by the developing regions' low level of awareness about pet insurance plans and services. In comparison to their Dogsized counterparts, the disposable income per capita in developing countries is comparatively low. An additional element hindering the market data is a lack of knowledge about numerous infectious and zoonotic diseases. Additionally, there are fewer private veterinarians and veterinary facilities in poorer nations, thus pet insurance is not seen as a top priority. Cats and dogs are the most prevalent companion animals that can serve as a direct or indirect source of zoonotic infection. As a result, the aforementioned concerns plus a general lack of knowledge about pet insurance coverage are some of the main obstacles to the market's expansion.

Which Region Dominated the World Pet Insurance Market?

The pet insurance industry was dominated by Europe in 2021, with a revenue share of about 43.0 percent. This is because pet insurance is becoming more widely used, pet ownership is increasing, and important companies are present. In order to encourage dog adoption among pet owners, numerous insurance companies throughout Europe are developing various policy coverages. These businesses offer services that include planning for illnesses, accidents, and different diseases. By 2017, 23.0 percent of pets in the UK and 30.0 percent of pets in Sweden were insured, and it was predicted that this penetration would rise over time, according to the Department of Clinical Veterinary Science and the Pet Food Institute. Important market participants like Petplane have their headquarters in the United Kingdom, whereas DFV has theirs in Germany. These businesses regularly carry out different strategic measures to grow their market share and support regional development. 

However, by 2030, the market for pet insurance in North America is expected to surpass USD 5.6 billion. The market expansion in North America can be due to rising pet adoption rates and rising consumer knowledge of various cutting-edge pet insurance plans. As an illustration, the North American Pet Health Insurance Association (NAPHIA) announced that the U.S. pet health insurance market posted gross written premium of approximately USD 2 billion in 2020, an exponential increase of over 27% from USD 1.6 billion at the end of 2019. This increase can be attributed to the growing U.S. trend of pet adoption. Additionally, it is anticipated that the rise of the local pet insurance sector will be aided by the development of veterinary healthcare infrastructure and greater public awareness of veterinary health.

Moreover, the market for pet insurance in Asia Pacific is predicted to grow at a CAGR of 7% over the forecasted period, driven by rising pet adoption and expanding awareness of animal health. Additionally, expanding pet insurance customers in China and India and rising per capita animal health expenditure in developing nations will drive regional market trends. The APAC region's market will rise due to improving living standards, rapid economic expansion, and technological improvement. 

Segmentation of Global Pet Insurance Market-

Global Pet Insurance Market – By Policy Coverage

  • Accident and Illness
  • Accident Only
  • Others

 Global Pet Insurance Market – By Animal Type

  • Dogs
  • Cats
  • Others

 Global Pet Insurance Market – By Sales Channel

  • Broker
  • Agency
  • Others

Frequently asked questions about global Pet Insurance industry

Pet Insurance Market also suffered from COVID 19 pandemic which resulted in declining revenue generated in 2020. The bulk of diagnostic and veterinary facilities were shut down as a result of lockdown measures taken by various governments, which is to blame for this.

Europe accounted for the highest share in the global pet insurance market in terms of value as well as volume.

The worldwide pet insurance market is expanding as a result of rising and increasing demand for market plans for pet insurance and the rise in demand for financial security in the event of surges in uncertainties.

Due to the rising popularity of pet insurance as well as the rising cost of medical care and prescription drugs, the accident & illness category of policy coverage is anticipated to gain a sizeable part of the market during the forecast period.

In 2021, the dogs category dominated the market and contributed for more than 50% of total sales.

Pet Insurance Market Scope

Report Attribute Details
Market Value in 2021 USD 8.1 Billion
Market Value in 2028 USD 20 billion
CAGR 16.3%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Aug 2022
Category:  Banking & Financial Services
Report ID:   60594
Report Format:   PDF
Pages:   130
Rating:    4.1 (40)
Delivery Time: 24 Hours to 48 Hours   
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