Pet insurance provides financial protection for veterinary expenses and can help owners care for pets when illness or injury occurs. It covers various illnesses, accidents, and unexpected costs of veterinary care such as surgical procedures, hospitalization, prescription medications, diagnostic tests and more. With rising pet adoption in recent years, especially cats and dogs, the need for planned veterinary care has increased significantly. It is estimated that over 85 million American households own a pet and spend approximately $30 billion annually on vet services in the U.S. alone. The global pet insurance market is highly driven by growing pet humanization trend where pets are considered as integral family members. With increasing disposable income levels, pet parents are now willing to spend more on comprehensive insurance plans for their furry companions.
The global pet insurance market is estimated to be valued at US$ 9.59 Mn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising pet adoption worldwide is one of the major drivers propelling growth of the pet insurance market. As mentioned in the heading, pet ownership has grown significantly in past few years with people treating pets as family members. According to the APPA National Pet Owners Survey conducted in 2021, U.S. pet ownership grew from 67% of households in the year 2000 to nearly 70% today. This increasing pet humanization trend has made pet healthcare a top priority for owners.
Another driver for the market is growing awareness and need for comprehensive veterinary care coverage. Unlike humans, pet medical insurance is not mandatory which often results in owners skipping necessary treatments due to exorbitant bills. Pet insurance helps cover costs of various unexpected medical emergencies and surgeries, thereby encouraging owners to seek quality healthcare services. This is an important consideration fueling adoption of such policies across both developed and developing regions.
Segment Analysis
The global pet insurance market is divided into two key segments – accident only and accident and illness coverage. Among these, the accident and illness coverage segment dominates the market and accounts for over 70% of the total market share. This segment is dominating as it provides comprehensive coverage for pet medical bills and treatments arising out of accidents as well as illnesses. It covers all types of medical costs for pets like diagnostic tests, surgeries, prescribed medicines, hospitalization etc. thereby offering maximum financial protection to pet owners.
PEST Analysis
Political: The pet insurance industry is currently not regulated in most countries. However, some countries have proposed specific regulations to govern the functioning of pet insurance companies and standardize coverage details. This could impact market dynamics in the coming years.
Economic: Rising disposable incomes and growing humanization of pets have boosted pet care spending globally. High veterinary costs are a concern for many pet owners leading to increased demand for pet insurance policies. The strengthening economy positively impacts the market growth.
Social: Small families with dual incomes and growing acceptance of pets as companions are key social factors contributing to market growth. People are willing to spend significantly on pets equivalent to family members for their wellbeing.
Technological: Digitalization and emergence of online channels have facilitated easy purchase and claim settlement processes for pet insurance. Web aggregator sites offer plans from multiple insurers aiding comparisons. Mobile apps help monitors pets’ health and facilitate virtual vet consultations.
Key Takeaways
The Global Pet Insurance Market Size is expected to witness high growth at a CAGR of 6.5% during the forecast period of 2023 to 2030.
Regional analysis shows that North America currently leads the market due to growing pet population and pet humanization trends. Increasing awareness about pet insurance benefits is driving the Asia Pacific market which is expected to emerge as the fastest growing regional market in coming years.
Key players operating in the pet insurance market include Medibank Private Limited, Petplan, Oneplan Insurance, Dotsure.co.za (Hollard), Healthy Paws Pet Insurance LLC, Figo Pet Insurance LLC, Embrace Pet Insurance Agency LLC, Anicom Holdings Inc., Oriental Insurance Company Ltd., MetLife Services and Solutions LLC (PetFirst Healthcare LLC), and Crum & Forster Pet Insurance Group (Hartville Pet Insurance Group), among others. Key players are focusing on product innovation and portfolio expansion across different regions to strengthen their market positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.