USD 8.03 billion
Report ID: SQMIG40O2005 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 86 | Figures: 79
Pet Insurance Market size was valued at USD 8.03 billion in 2021 and is poised to grow from USD 9.4 billion in 2022 to USD 33.1 billion by 2030, growing at a CAGR of 17.04% in the forecast period (2023-2030).
Some of the major factors driving this market are an increase in the number of pets, the adoption of pet insurance in underserved regions, rising veterinary care costs, initiatives by important companies, and the humanization of pets. According to Trupanion, approximately 800,000 pets were covered by the company's insurance in 2020 spanning important markets in the United States, Canada, and Australia. Pet owners, veterinarians, veterinary clinics, and animal health businesses have all faced challenges due to the COVID-19 pandemic. However, the region quickly began implementing protective measures to guarantee access to veterinary care and other services in response to the pandemic. The hardships caused by the pandemic made pet owners aware of the benefits of obtaining pet insurance coverage to reduce financial risk. Pet ownership rises in 2020, according to a survey by Petplan, in the U.K. In the market cats and dogs are the two most common pets. Around 26% of pet owners in the UK bought a pet during the recession and around 47% of respondents bought a pet for the first time.
The 3 main reasons for having a pet were identified as working from home conditions, the desire to have companionship, and spending more time at home due to the lockdown and movement restrictions. Companies like Animal Friend Insurance started offering remote consultation coverage to pet parents by partnering with Joii Pet Care. Furthermore, the growing need for the insurance to help limit out-of-pocket costs for serious medical problems, such as accidental injuries and cancer is predicted to drive the growth of the market in the near future. Additionally, there is a rise in the need for veterinary hospitals, which is considered to be a factor in the demand for pet insurance.
The high cost of the insurance plans, lack of consumer knowledge, stringent laws, and government regulations are all important issues that limit the growth of the market. Additionally, regions such as Asia-Pacific, the Middle East, and Africa have relatively less knowledge about pet insurance, which is estimated to restrain market growth.
US Pet Insurance Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 8.03 billion
Accident & illness
Accident & illness
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Global pet insurance market is segmented on the basis of policy coverage type, animal type, service type, sales channel and region. By policy coverage type, the market is segmented into accident & illness, accident only and others. By animal type, market is segmented into dogs, cats, and other animals. By service type, market is segmented into public insurance provider and private insurance provider. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Pet Insurance Market Analysis by Policy Coverage Type
The accident and illness segment led the market with a share of 84.0% of the total revenue in 2021. In the coming years, it is expected to witness the fastest CAGR. High veterinary treatment and diagnostic costs, an increase in the number of companion animals and greater awareness of pet insurance are the main drivers of this expansion. The providers frequently provide accident and illness coverage. These offer coverage for a variety of issues including medications, diagnostic procedures, acute and chronic illnesses, and more. This segment is expected to grow rapidly in the coming years as accident and illness policies offer comprehensive coverage to pet owners.
Other segments, which include, among other things, liability insurance plans, are expected to grow faster in Europe. This is because some nations, such as Germany, require dog liability insurance for pet owners. For example, Luco provides dog liability insurance in France, Germany, and Spain, among other nations in Europe. Physical or material damage caused by pets is covered by up to 30 million euros for pet owners.
Pet Insurance Market Analysis by Animal Type
In 2021, the dog market segment dominated the market and contributed more than 50% of the total revenue. Horses, small mammals and other related segments are expected to expand at a CAGR of more than 17% during the forecast period. Rising pet adoption, development of insurance companies' service offerings and growing disposable income in key sectors are the main drivers of the market.
According to FEDIAF, in 2020 there were approximately 88.0 million households in the European Union with at least one pet. It is estimated that 110 million cats, 89 million dogs, 51 million birds, 29 million small animals, and 9 million reptiles are kept as pets. The growing population of pets in the area as well as the availability of various insurance policies to cater to the varied demands of pets is expected to fuel market growth.
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Europe dominated the global market in 2021, accounting for over 43.0% revenue share. This is due to the increasing use of pet insurance, increase in pet ownership, and presence of important corporations. As of 2017, 23.0% of pets in the UK and 30.0% of pets in Sweden were covered by pet insurance policies, and according to the Department of Clinical Veterinary Science and the Pet Food Institute, this proportion is predicted to increase over time. Important market participants such as Petplane are headquartered in the United Kingdom, while DFV is headquartered in Germany. These businesses regularly take different strategic measures to increase their market share and thereby help regional development.
By 2021, the pet insurance market in North America accounted for the second-largest revenue share. Only 1-2 percent of American pets are insured, creating potential growth opportunities. As per the forecast, the Asia Pacific region will grow at a rate of around 18%. This is due to the growing trend of pet adoption and the expansion of the local economy. Other factors influencing the market in this region include veterinary health awareness and improved veterinary healthcare infrastructure.
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Pet Insurance Market Drivers
Increasing the health of the pet
Increase in pet adoption
Pet adoption is becoming more popular among consumers
Pet Insurance Market Restraints
Insufficient knowledge on pet insurance policies
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The global pet insurance market is fragmented and highly competitive. Key industry players are focused on product developments, new product launches, and geographical expansions to gain a significant amount of market share.
For example, in June 2020, Trupanion and Vetter Software, a provider of technology solutions for animal healthcare, agreed to a partnership. The collaboration includes a connection between Trupanion software, which allows veterinarians to make direct payments at checkout, and the cloud-based veterinary practice management platform from Vetter Software.
In November 2021, AXIS Insurance, the specialty insurance business arm of AXIS Capital Holdings Limited, entered the market in collaboration with managing general underwriter Petplan. Through its accident and health division, the company entered into a strategic collaboration with Petplan to further its growth objectives.
Pet Insurance Market Top Player’s Company Profiles
Pet Insurance Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global pet insurance market analysis, by police coverage type, the accident and illness segment led the market with a share of 84.0% of the total revenue in 2021. By animal type, in 2021, the dog market segment dominated the market and contributed more than 50% of the total revenue. Europe dominated the market in 2021, accounting for over 43.0% revenue share. This is due to the increasing use of pet insurance, the increase in pet ownership, and the presence of important corporations. However, the high cost of insurance plans, lack of consumer knowledge, stringent laws, and government regulations are all important issues that limit the growth of the market. Additionally, regions such as Asia-Pacific, the Middle East, and Africa have relatively less knowledge about the insurance, which is estimated to restrain market growth.
|Market size value in 2021
|USD 8.03 billion
|Market size value in 2030
|USD 33.1 billion
|Forecast Unit (Value)
|North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Pet Insurance Market Recent Developments
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Parent Market Analysis
KEY MARKET INSIGHTS
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Global Pet Insurance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Pet Insurance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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