Increasing Pet Adoption Is Driving Pet Insurance Market Growth Globally

 

 Pet Insurance Market

Pet Insurance Market, By Policy (Illnesses and Accidents, Chronic Conditions, and Other Policies), By Animal (Dogs, Cats, and Other Animals), By Provider (Public and Private), and By Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America)- Size, Share, Outlook, and Opportunity Analysis, 2023 - 2030.

Market Overview:

Pet insurance is a type of insurance coverage designed to provide financial protection for veterinary expenses related to pets. Similar to health insurance for humans, pet insurance helps pet owners manage the cost of medical treatments, surgeries, medications, and other healthcare expenses for their pets.

Pet insurance policies typically offer coverage for accidents, illnesses, and sometimes routine care. The specific coverage and benefits vary depending on the insurance provider and the type of policy selected. Pet insurance policies often involve deductibles, which is the amount the policyholder must pay out of pocket before the insurance coverage kicks in. The reimbursement percentage determines the portion of eligible expenses that the insurance provider will cover after the deductible is met.

Competitive Landscape:

Major players operating in the global pet insurance market include Pets Best Insurance Services, LLC., 24PetWatch, Agria Pet Insurance Ltd, Anicom Holdings, Figo Pet Insurance LLC., Embrace Pet Insurance Agency, LLC., Healthy Paws Pet Insurance, LLC., ASPCA, Nationwide Mutual Insurance Company, and Trupanion.

Key Market Drivers:

The growing trend of pet ownership, driven by factors such as companionship, lifestyle changes, and mental well-being, is expected to augment the growth of the global pet insurance market. As pets become an integral part of families, owners are willing to invest in their healthcare and seek insurance coverage to mitigate the financial burden of veterinary expenses. For instance, in June 2021, Trupanion announced that the company will be expanding its overseas growth by hiring Wheeler from Agria Pet Insurance Ltd.

The cost of veterinary care has been steadily increasing, fueled by advancements in medical technology and the availability of sophisticated treatments for pets. Pet insurance helps owners manage these rising healthcare costs and ensures that their pets receive necessary medical attention without financial constraints.  There is a heightened awareness among pet owners about the importance of preventive healthcare and regular veterinary check-ups. This awareness has led to an increased demand for pet insurance, as owners seek coverage for routine vaccinations, wellness visits, and early detection of potential health issues.

Covid-19 Impact Analysis:

The pandemic witnessed a surge in pet adoption rates, as people sought companionship during lockdowns and work-from-home arrangements, which has boosted the growth of the global pet insurance market. This increased pet ownership has led to a higher demand for pet insurance as owners prioritize the health and well-being of their newly adopted pets. For instance, in March 2021, ASPCA Pet Health Insurance and Waffle and Crum & Foster Pet Insurance Group partnered in order to provide pet owners with efficient and customizable coverage in the United States.

Key Takeaways:

·         North America is expected to dominate the growth of the global pet insurance market. Factors such as a high level of pet ownership, increased awareness about pet healthcare, and a well-established insurance industry contribute to the growth of the market in this region. The United States and Canada are key contributors to the North American market. For instance, in January 2021, Nationwide Mutual Insurance Company and Walmart partnered in order to aid families with pets save money and time when taking pet prescription medications at all of the pharmacies owned by Walmart.

·         The Asia-Pacific region is estimated to witness significant growth in the global pet insurance market, owing to the increasing pet adoption rates, rising disposable incomes, and changing attitudes towards pet care. Countries like China, Japan, and Australia are key contributors to the growth in this region. For instance, according to the Parliament of Australia, there are more than 29 million pets in Australia currently.