Pet Insurance: Definition/Overview
Pet insurance is an insurance type of casualty insurance policy and specialty property that pet owners buy to cover the unintended costs of healthcare for a pet, including veterinary services such as prescribed pet medicines, injuries from accidents, and surgical procedures. Pet insurance is purely a reimbursement program. A casualty insurance and a form of property, pet insurance provides reimbursement to the owner after the owner submits a claim to the insurance company after the pet has received required treatment or care.
Global Pet Insurance Market: Regional Overview
- Europe accounts for the major share of the global pet insurance market, followed by North America and Asia Pacific
- Europe and North America are mature markets for pet insurances. The global pet insurance market is dominated by Europe followed North America. Furthermore, Europe is anticipated to continue its dominance during the forecast period due to a high number of pet ownership in the region. Currently, more than 80 million European households own, at least, one pet animal. This factor is expected to fuel the growth of the Europe pet insurance market during the forecast period.
- In North America, the U.S. has been one of the major countries contributing to the growth of pet insurance market in the region. Moreover, according to the American Pet Products Association, 60% (approximately 85 million) U.S. households own pet. North America is anticipated to be the second largest market for pet insurance during the forecast period. This can be attributed to the rising adoption of pets in the region.
Global Pet Insurance Market: Trends
- Majority of pet insurance companies are focusing on partnerships with employers, veterinarians, animal breeders, and shelters. For instance, expanding the veterinary distribution method by insurance companies would help pet owners to obtain pet insurance before being faced with a high-cost treatment. Expanding the employer channel is helping insurance companies to plan benefits such as group discounts. Globally, augmenting the avenues of contact between pet insurance and consumers, beyond the direct-to-consumer realm or internet resulting in increasing the sale of pet insurance.
- Insurance companies are partnering with various pet health financing options such as pet care savings plans, pet credit cards, etc. and converting new clients for buying pet insurance. Partnering with such payment options is encouraging pet owners, as it is easier to pay, thus creating lucrative opportunities for pet insurance companies.
Global Pet Insurance Market: Market Drivers, Opportunities, and Restraints
- Pet owners consider their pets as family members. Furthermore, demographic shift toward smaller households have encouraged consumers to adopt feline or canine companions. Additionally, increase in disposable income has also encouraged families to adopt pets and provide more facilities to their pets.
- Consumers are becoming more conscious about living a healthy life and also demand the same for their pets. They are willing to invest in their pets’ diet and care, which is leading to increase in pet veterinary doctor visits, thus boosting the global pet insurance market. These factors are positively influencing the global pet insurance market.
- Pet insurance policies, however, are expensive based on various types, brands, and claims. Local insurer with have lower cost as compared to branded ones. Developing countries, such as China, India, and Brazil are price sensitive and brand conscious as well. A shift toward low cost pet insurance policies is common in these countries. This may restrain the growth of the branded and premium priced pet insurance companies in the near future. The global pet insurance market is experiencing intense competition due to the presence of established and local players, and competitive pricing strategies adopted by market players.
Global Pet Insurance Market: Key Segments
The global pet insurance market has been segmented based on pet, coverage type, distribution channel, and region.
Pet - In terms of pet, the global pet insurance market has been classified into dog, cat, and others.
Coverage Type - Based on coverage type, the global pet insurance market has been divided into accident & illness and accident only.
Distribution Channel - In terms of distribution channel, the global pet insurance market has been bifurcated into online and offline.
Region - Based on region, the global pet insurance market has been classified into North America (U.S., Canada, and Rest of North America), Europe (U.K., Sweden, France, Germany, and Rest of Europe), Asia Pacific (India, China, Japan, and Rest of Asia Pacific), Middle East & Africa (GCC, South Africa, and Rest of Middle East & Africa), and South America (Brazil, and Rest of South America).
Global Pet Insurance Market: Competition Landscape
- The global pet insurance market is fragmented due to the presence of numerous established and local players. Rivalry among manufacturers is expected to increase in the near future due to technologically advanced online insurance options offered by both established and local players.
- Key companies profiled in the pet insurance research report include Agria Pet Insurance Ltd, Allianz Insurance plc, Anicom Holdings, Inc., Trupanion, Inc., American Modern Insurance Group, Inc., Crum & Forster Pet Insurance Group, Nationwide Mutual Insurance Company, RSA Insurance Group plc, Embrace Pet Insurance, and Progressive Casualty Insurance Company.