DUBLIN–(BUSINESS WIRE)–The “Global Pet Insurance Market – Forecasts from 2022 to 2027” report has been added to ResearchAndMarkets.com’s offering.
The pet insurance market has a CAGR of 5.66% during the forecast period to reach US$84.996 billion by 2027, from US$57.811 billion in 2020.
Pet Insurance is a protection policy that mostly covers veterinary healthcare for a person’s sick or wounded pet. Insurance companies may compensate for a part or whole of the healthcare treatment cost of the pet, depending on the policy. Some policies also cover costs if the pet gets stolen or lost, or even in case of death.
The global pet insurance market is likely to increase in the following years, owing to the increasing veterinary healthcare prices. The increasing trend of pet adoptions and pet purchases during the COVID-19 pandemic would also play a vital role in the pet insurance market. Europe is currently holding the largest market share in the pet insurance industry. Sweden currently holds the largest market share in Europe, with almost 90% of pets having reported pet insurance covers.
However, North America has been regarded as the fastest growing market in recent years, rapid advancements in the pet insurance market. NAPHIA recently revealed many industry achievements in North America, including a remarkable US$2.174 billion in total pet health insurance premiums sold in 2020 (up to over 26% from $1.717 billion in 2019) and over 3.45 million pets covered across the region (up by 22.5% from over 2.81 million pets insured in 2019).
Increase in veterinary healthcare costs
With the increasing adoption and purchase of pet animals, the veterinary healthcare industry has also become substantially expensive. Knee replacements, sophisticated allergy testing, cancer treatments, and chiropractic therapy, which were previously exclusively available to humans, are now available to dogs and cats. According to the American Pet Products Association’s (APPA) annual state of the industry report, pet expenditure in the United States hit US$103.6 billion in 2020, up by 6.7% from the previous year. Of that amount, US$ 31.4 billion was used for veterinary healthcare, which accounted for an increase of about 7.2% from the previous year. With the increasing costs of veterinary healthcare, people have started to understand the significance of pet insurance. This is consequently expected to drive up the demand for pet insurance.
Moreover, pet owners have seen a significant increase in instances of dog thefts. According to information released under the Freedom of Information Act by Direct Line Pet Insurance, thefts have increased by 13%, totaling 2,670 instances in 2021 in the UK. This has been recorded as the highest number of thefts in the last seven years. Government agencies have tried releasing guidelines to safeguard the pets, but have been unsuccessful. The best option that pet owners have to safeguard their pets is to get a theft or straying insurance cover that would cover the costs for the loss of a pet. Such increases in the instances of pet thefts are also expected to drive up the pet insurance market.
Increasing policy prices
Pet insurance prices have been increasing rapidly over the past few years. Veterinary treatments have advanced to the point that veterinarians can now diagnose and treat pet ailments with much more accuracy than ever before. However, these treatments come at a price, and they will unavoidably affect pet insurance premiums. Moreover, some insurance providers are a lot more careful about their financial decisions and want to generate as much revenue as they can. Some of them are more active in raising their rates than others, and they are willing to risk losing clients as a result.
Furthermore, even if a pet is currently in perfect condition and has never filed a claim, the pet insurance premiums may rise. As animals grow older, the likelihood of their being ill increases, raising the cost of insurance. Since pets live for a shorter amount of time on average than humans, it may seem that they are afflicted with more ailments and succumb to them sooner.
By Animal Type
By Policy type
- Lifetime Cover
- Illness Cover
- Accident Cover
- Non-Lifetime Cover
- Illness Cover
- Accident Cover
Key Topics Covered:
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. PET INSURANCE MARKET, BY ANIMAL TYPE
6. PET INSURANCE MARKET, BY APPLICATION
7. PET INSURANCE MARKET, BY COUNTRY
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
9. COMPANY PROFILES
- Nationwide Mutual Insurance Company
- Metlife Inc.
- Healthy Paws Pet Insurance, LLC.
- Crum & Foster
- Petplan Limited
- Embrace Pet Insurance Agency, LLC
- Animal Friends Insurance
- Petsecure Pet Health Insurance
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