Download Sample, Rising Disease in Pets is Expanding the Demand for the Pet Insurance Market
The demand for pet insurance is growing as it helps pet owners cover the veterinary treatment cost of their pet due to accidents or illness. The insurance reimburses the losses and expenses of the pet parent. The increasing health issues such as skin allergies, ear infections, non-cancerous skin mass, and others in the pet are driving the market. According to the Asthma and Allergy Foundation of America, allergies to cats and dogs affect 10 to 20% of the world’s pet population. The ear infection in the dogs in UK is experienced by 7% of the dog population, according to the Schwarzman Animal Medical Center.
According to the North American Pet Health Insurance Association (NAPHIA), the U.S. pet insurance of 6.25 million pets were insured in North America by 2023 and the pet insurance marketplace will increase by 16.7% from the 5.3 million total pets insured in 2022. Additionally, in the USA people had spent over US$ 89 billion on pets in 2023. This increased expenditure is driving the pet insurance market.
According to the North American Pet Health Insurance Association (NAPHIA), the U.S. pet insurance of 6.25 million pets were insured in North America by 2023 and the pet insurance marketplace will increase by 16.7% from the 5.3 million total pets insured in 2022. Additionally, in the USA people had spent over US$ 89 billion on pets in 2023. This increased expenditure is driving the pet insurance market.
Increasing Awareness of Pet Health and Wide Range of Pet Insurance Policy are driving the Market
The demand for the pet insurance market is rising as the adoption of dogs, cats, and others is growing. The owner’s willingness to spend on the healthcare of pets has increased due to disposable income, which drives the pet insurance market. The veterinary clinics have been expanding in recent years, as the cost of veterinary treatment is high costs, which drives pet owners the insure their pets. The insurance covers the accident and illness policies that help the pet owners financially. The care and emotional bond for the pet by the owners have increased, and this increased the demand for health care. These increased expenses due to advancements in medical technology and treatments lead to the demand for pet insurance
Furthermore, the other key factor that increases the demand growth of the insurance market is the range of pet insurance policies, from which the pet owners benefit for instance, a lifetime policy that covers a pet’s entire life for medical illnesses and injuries can be renewed every year. Time-limited policies that insure to claim for a medical condition up to a specific amount for a limited time. The accident-only policy covers vet fees for sudden and unexpected injuries. And lastly, the policy of maximum benefits covers each new medical condition up to a certain amount for the length of the policy.
Furthermore, the other key factor that increases the demand growth of the insurance market is the range of pet insurance policies, from which the pet owners benefit for instance, a lifetime policy that covers a pet’s entire life for medical illnesses and injuries can be renewed every year. Time-limited policies that insure to claim for a medical condition up to a specific amount for a limited time. The accident-only policy covers vet fees for sudden and unexpected injuries. And lastly, the policy of maximum benefits covers each new medical condition up to a certain amount for the length of the policy.
Recent Trends in the Pet Insurance Industry:
- Focus on transparency in pricing and policy terms.
- Rising premiums due to increasing veterinary care costs.
- Partnerships with veterinary clinics offering bundled services for customers.
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Insufficient Knowledge About the Benefits of Pet Insurance Among the Pet Parents is key Restrain for the Market
The growth of the pet insurance market declined due to insufficient knowledge about the benefits that are provided by insurance policies to pets and the value of pet insurance, this leads to a major challenge to the market. To mitigate this challenge the insurance company should focus on providing knowledge about the benefits of insurance and offerings of affordable premiums and providing clear and transparent policy information.
Furthermore, the insurance face challenge from insurance fraud. For example, if the insurance company pays for a health condition that is already known to the pet parent before the policy is approved, these restrictions can be reduced by providing the term of pre-existing conditions. Additionally, most insurance companies do not claim insurance directly from the veterinarian, this usually allows the insurance holder to pay the full amount first and then the insurance company pays after the due date. This process of paying claims takes time and leads to threats to the company. Moreover, the lengthy processing time of insurance claims acts as a key factor that reduces the demand for it. The claims approval and reimbursement process will take a long time, although some of the insurance providers process and approve the claims within 24 hours others take time to reimburse the payment.
Furthermore, the insurance face challenge from insurance fraud. For example, if the insurance company pays for a health condition that is already known to the pet parent before the policy is approved, these restrictions can be reduced by providing the term of pre-existing conditions. Additionally, most insurance companies do not claim insurance directly from the veterinarian, this usually allows the insurance holder to pay the full amount first and then the insurance company pays after the due date. This process of paying claims takes time and leads to threats to the company. Moreover, the lengthy processing time of insurance claims acts as a key factor that reduces the demand for it. The claims approval and reimbursement process will take a long time, although some of the insurance providers process and approve the claims within 24 hours others take time to reimburse the payment.
Company Acquisitions Present Lucrative Growth Opportunities for the Market Expansion
In May 2024, JAB Holding Company, the investment firm announced their plans to build a global insurance platform to expand their business in insurance. Previously, in October 2022, Pinnacle Pet Group a pan-European fully integrated pet insurance and health services platform that is indirectly owned by JAB holding company, announced the completion of the United Kingdom operation of Crum and Forster Pet Insurance Group.
Furthermore, in April 2024, Chubb a global insurance leader announced the agreement to acquire Healthy Paws, a U.S.-based managing general agent (MGA) specializing in pet insurance from Aon. This acquisition aimed to position Chubb for expansion in a niche market for potential growth. Additionally, in May 2024, Pet Global Insurance provider, Petcover Group acquired Reach Financial Services Limited, including their pet and personal lines brand CoverMy from the Totemic Group.
Furthermore, in April 2024, Chubb a global insurance leader announced the agreement to acquire Healthy Paws, a U.S.-based managing general agent (MGA) specializing in pet insurance from Aon. This acquisition aimed to position Chubb for expansion in a niche market for potential growth. Additionally, in May 2024, Pet Global Insurance provider, Petcover Group acquired Reach Financial Services Limited, including their pet and personal lines brand CoverMy from the Totemic Group.
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Rising Disposable Income and Increased Expenditure on Pet Care is Providing Traction in the Market
In North America, the adoption of pets has been increasing year-on-year, and the spending on pets for their health has driven the market growth. According to research, the adoption of dogs is increasing by approximately 2.2 million and the adoption of cats by 2.3 million from pet shelters in this region. The rise in awareness of pet health and high veterinarian expenses are driving the demand for the pet insurance market.
In Asia Pacific, the demand for pet insurance is expanding due to the growing disease in pets and rising animal health expenditure. For instance, according to the Global State Pet Care, in China pet ownership has been increased by 113% between 2014, 2019, and 202,4, and anticipated that China will have the most pets in the world. Europe is also expected to witness substantial growth due to increased disposable income and concern for pet health. Furthermore, according to Global State Pet Care in Brazil, Latin America, the cat population has been growing three times faster than dogs which drives the demand for pet insurance.
In Asia Pacific, the demand for pet insurance is expanding due to the growing disease in pets and rising animal health expenditure. For instance, according to the Global State Pet Care, in China pet ownership has been increased by 113% between 2014, 2019, and 202,4, and anticipated that China will have the most pets in the world. Europe is also expected to witness substantial growth due to increased disposable income and concern for pet health. Furthermore, according to Global State Pet Care in Brazil, Latin America, the cat population has been growing three times faster than dogs which drives the demand for pet insurance.
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The report provides a detailed overview of the pet insurance market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for pet insurance market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the pet insurance market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the pet insurance market. Some key country and region included in the pet insurance market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Luxembourg, Ireland, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Israel, Kenya, Rest of MEA |
Pet Insurance Market Research Report Covers In-depth Analysis on:
- Pet insurance market detailed segments and segment-wise market breakdown
- Pet insurance market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in crop protection chemicals industry)
- Current, historical and forthcoming 10 years market valuation in terms of crop protection chemicals market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Pet insurance market demand analysis
- Pet insurance market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in pet insurance market
- Regulatory landscape by key regions and key countries
- Pet insurance market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on pet insurance market forecast by countries
- Mergers and acquisitions in pet insurance market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key market drivers for the pet insurance industry?
The key market drivers for the Pet Insurance industry include increasing pet adoption rates, rising veterinary costs, and growing awareness of pet health and wellness among pet owners.
What trends are shaping the pet insurance market landscape?
Trends shaping the market include customized insurance plans, digital claim processing, increased telemedicine integration, and the rise of multi-pet insurance policies offering discounts for multiple animals.
What are the major challenges in the pet insurance market?
Major challenges include limited awareness in emerging economies, high premiums for specialized breeds, and complexities in policy terms that deter new pet owners from opting for insurance.
