The global Pet Insurance Market size is anticipated to reach USD 32.7 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a lucrative CAGR of 16.7% from 2022 to 2030. The key factors driving the market growth include the rising number of pets across the globe, high veterinary care costs, and the need to reduce financial risk. As per the Pet Food Manufacturers Association, about 59% of households had pets in the U.K. in 2021. Dogs were the most popular at about 33%, followed by cats at 27%. Other pets include rabbits, indoor birds, guinea pigs, tortoises and turtles, horses, and others.
The COVID-19 pandemic has impacted all industries,
including the market. The surge in pet ownership during the pandemic,
expenditure on pets, and increasing pet humanization further supported the
adoption of pet insurance policies during 2020 and 2021. Concerns over rising
veterinary care costs and fear of transmission of COVID-19 from pets to pet
owners also increased the demand for reducing financial risks with a suitable
pet insurance policy. Although OIE has confirmed that no animals can spread
this virus. However, in the initial months of the pandemic, there was
speculation that it may spread through birds. Overall, the pandemic positively
impacted the market with increased awareness and adoption of insurance policies
by pet parents.
Rapidly growing consumer awareness, underpenetrated
market, and product acceptance have benefited the market. According to Petplan,
in the U.S., the average cost of an unexpected visit to the veterinarian was
around USD 800-1,500 in 2018. This burden could be eased with an insurance plan
in place. Moreover, untapped opportunities in developed and developing
economies are anticipated to provide lucrative growth to this market in the
coming years. Furthermore, advancements in pet insurance, such as vet direct
pay by Trupanion, are revolutionizing medical insurance for cats and dogs by
eliminating the reimbursement model. Similarly, pet insurance in Europe is
growing rapidly due to strict pet insurance regulations in countries such as
Sweden.
In addition, strategic initiatives by market players
are further expected to boost the market growth. For instance, in April 2020,
Zoetis entered the pet insurance space by launching Pumpkin Insurance Services
Inc.- a pet insurance agency across the U.S. The company offers competitive pet
health insurance plans and preventive care plans to pet parents. In December
2019, MetLife, Inc. on the other hand, acquired PetFirst Healthcare, LLC - a
companion animal health insurance administrator. This acquisition leveraged the
company’s position as a leader in group benefits distribution channels in the
U.S. by enabling MetLife to expand its offerings. Such initiatives are
estimated to boost the market growth in the coming years. Insurance providers
are also focused on increasing penetration by targeting the customer base of
the sales channels. For instance, in February 2018, Healthy Paws collaborated
with Roover.com to increase its market penetration.
Related Press Release@ Pet Insurance Market Report
Pet Insurance Market Report
Highlights
- The market was valued at USD 8.3 billion in 2021 and is expected to
witness a CAGR of 16.7% during the forecast period
- The dogs insurance segment held the highest share of the market in
2021. The high popularity of dogs as pets and increase in the number of
dog pet owners across the globe are the key drivers for this segment
- The direct sales segment dominated the market in 2021 while the
others segment is estimated to grow the fastest over the forecast period
- Market players are utilizing various sales channels to distribute
their insurance products and increase their market share. Bancassurance,
for instance, held a notable share of the market in 2021. This is due to
growing collaborations between pet insurance companies and banks. For
instance, in April 2018, CIMB Bank in Singapore was the first to launch
pet insurance for a wide variety of pets
- Based on coverage type, the accident and illness coverage segment
accounted for the largest revenue share in 2021. The key drivers of the
segment include high veterinary treatment and diagnostic cost, the rise of
the companion animal population, and an increase in the awareness of pet
insurance
- The accident only segment held a substantial share of the market in
2021. The key drivers of the segment include increasing health issues in
animals and high treatment cost
- In 2021, Europe held the dominant share of the market. European
countries were found to have a higher rate of pet insurance penetration
along with the presence of key market players
- North America held the second-largest revenue share as of 2021. The
key drivers of the market are a rise in the companion animal population
and an increase in awareness related to pet insurance
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, the company offers market intelligence studies ensuring relevant and fact-based research across a range of industries including technology, chemicals, materials, healthcare and energy.
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