Global Pet Insurance Market, By Product Type (Non-lifetime Cover Pet Insurance, Lifetime Cover Pet Insurance, and Accident-only Pet Insurance), Animal Type (Dogs, Cats, Horses, and Others), End-User (Agency, Broker, Bancassurance, and Direct Writing) – Industry Trends and Forecast to 2031.
Pet Insurance Market Analysis and Size
According to an analysis of pet ownership statistics by Forbes Advisor, as of 2023, two-thirds of U.S. households have a pet, marking a 56% increase since 1986. However, the percentage of pet owners with insurance remains relatively low, with about 4% of dogs and 1% of cats insured. The cost of pet insurance is typically higher for dogs compared to cats. Pet owners often face significant veterinary expenses, with a vet bill of USD 1,000 or more occurring every six seconds. Over the past few years, the total number of insured pets has seen double-digit increases, with an average growth rate of 26.6% since 2018. Insurance companies grossed USD 3.2 billion in pet insurance premiums by the end of 2022.
The global pet insurance market size was valued at USD 4.60 billion in 2023 and is projected to reach USD 9.44 billion by 2031, with a CAGR of 9.4% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016 - 2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Product Type (Non-lifetime Cover Pet Insurance, Lifetime Cover Pet Insurance, and Accident-only Pet Insurance), Animal Type (Dogs, Cats, Horses, and Others), End-User (Agency, Broker, Bancassurance, and Direct Writing)
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Countries Covered
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U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America
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Market Players Covered
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Nationwide Building Society (U.S.), Trupanion (U.S.), Pethealth Inc. (U.S.), Embrace Pet Insurance Agency LLC (U.S.), United States Fire Insurance Company (U.S.), Petplan Ltd. (U.K.), Hartville Group, Inc. (U.S.), Petfirst Healthcare LLC (U.S.), Anicom Holdings Inc. (Japan), RSA (U.K.), ipet Insurance (Japan), The Oriental Insurance Company Ltd. (India), Figo Pet Insurance, LLC (U.S.), Direct Line (U.K.), and Animal Friends Insurance Services Limited (U.K.)
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Market Opportunities
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Market Definition
Pet insurance is a type of insurance policy that helps cover the cost of veterinary treatment for pets in case of illness or injury. Similar to human health insurance, pet insurance typically reimburses the pet owner for a portion of the veterinary bill after treatment. This can include coverage for accidents, illnesses, surgeries, medications, and sometimes even preventive care such as vaccinations and annual check-ups. Pet insurance can provide pet owners with financial protection and peace of mind, helping them afford the best possible care for their pets.
Pet Insurance Market Dynamics
Drivers
- Awareness of Pet Health
Pet owners increasingly recognize the benefits of regular veterinary check-ups, vaccinations, and preventive treatments to ensure their pets' health and well-being. This heightened awareness has led to a greater willingness among pet owners to invest in insurance plans that can help cover the costs of these essential services. As pet owners become more informed about the potential health risks and expenses associated with pet ownership, they are more likely to seek out insurance coverage to provide the best possible care for their pets. Increased awareness of the importance of pet health and preventive care is a significant market driver.
- Rising Veterinary Costs
Rising veterinary costs drive pet owners to seek insurance coverage to manage these expenses. The cost of veterinary care, including routine check-ups, vaccinations, and emergency treatments, has been steadily increasing, making it more challenging for pet owners to afford these services out-of-pocket. As a result, pet insurance is becoming an attractive option for many pet owners, as it helps offset the financial burden of veterinary bills. This is expected to drive growth in the market as veterinary costs continue to rise.
Opportunities
- Increasing Disposable Income
As emerging economies develop and pet ownership becomes more widespread, people in these regions experience higher levels of prosperity. They are more likely to view their pets as integral members of their families and prioritize their health and well-being. This change in attitude is leading to a growing demand for pet insurance as pet owners strive to offer their pets the best care possible. Moreover, as disposable incomes increase, more pet owners can afford insurance premiums, further fueling market growth.
- Customized Insurance Coverage
Pet owners have diverse needs and preferences regarding insurance coverage for their pets, and customizable plans allow them to select coverage options that best suit their circumstances. This flexibility in coverage options can include coverage for specific medical conditions, wellness care, or even alternative therapies. By offering customized plans, insurance providers can appeal to a wider range of pet owners, driving the market growth.
Restraints/Challenges
- Competition and Market Saturation
The pet insurance market is becoming increasingly competitive, with many insurance providers offering a wide range of coverage options. This market saturation can make it challenging for insurers to differentiate their products and attract new customers. As more players enter the market, there is a risk of price wars and margin pressure, which can impact profitability and be a challenge for the market.
- Limited Awareness and Understanding
Many pet owners may not be aware that pet insurance exists or may not fully understand how it works, leading to a low uptake of insurance policies. This lack of awareness is due to insurers' limited marketing efforts and a general lack of education among pet owners about pet insurance. The limited awareness and understanding among pet owners about the benefits of insurance coverage for their pets is a major challenge facing the market.
This pet insurance market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the pet insurance market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Developments
- In January 2024, Five Sigma, a leading provider of cloud-based claims management solutions, entered into a strategic alliance with Odie Pet Insurance, a company focused on enhancing the accessibility and affordability of pet insurance. This partnership aims to transform the claims processes in the pet insurance industry and enhance overall operational efficiency
- In November 2023, Fetch announced a partnership with Best Friends Animal Society, a national organization dedicated to ending the euthanasia of dogs and cats in American shelters by 2025. As part of this collaboration, Fetch will make significant donations to support Best Friends' efforts to find homes for shelter pets and achieve their goal of creating a no-kill nation
- In September 2023, Independence Pet Group (IPG), a prominent provider of pet insurance services, completed the acquisition of Felix, the only pet insurance brand in the U.S. that exclusively focuses on cats. This acquisition strengthens IPG's position in the pet insurance market and expands its offerings to cater to the unique needs of cat owners
Pet Insurance Market Scope
The pet insurance market is segmented on the basis of policy type, animal type, and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Policy Type
- Lifetime Cover
- Illness Cover
- Accident Cover
- Non-Lifetime Cover
- Illness Cover
- Accident Cover
Animal Type
- Dog
- Cat
- Horse
- Others
End-User
- Agency
- Broker
- Bancassurance
- Direct Writing
Pet Insurance Market Regional Analysis/Insights
The pet insurance market is analyzed and market size insights and trends are provided by country, policy type, animal type, and end-user as referenced above.
The countries covered in the market are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.
North America is expected to dominate the market due to the rising number of pet owners choosing pet insurance coverage.
Asia-Pacific is expected to witness significant growth during the forecast period due to the increasing trend of pet adoption and the region's economic development. In addition, greater awareness of veterinary health and improvements in veterinary healthcare infrastructure contribute to market expansion.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Healthcare Infrastructure Growth Installed base and New Technology Penetration
The pet insurance market also provides you with detailed market analysis for every country growth in healthcare expenditure for capital equipment, installed base of different kind of products for pet insurance market, impact of technology using life line curves and changes in healthcare regulatory scenarios and their impact on the pet insurance market. The data is available for historic period 2016-2021.
Competitive Landscape and Pet Insurance Market Share Analysis
The pet insurance market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.
Some of the major players operating in the market are:
- Nationwide Building Society (U.S.)
- Trupanion (U.S.)
- Pethealth Inc. (U.S.)
- Embrace Pet Insurance Agency LLC (U.S.)
- United States Fire Insurance Company (U.S.)
- Petplan Ltd. (U.K.)
- Hartville Group, Inc. (U.S.)
- Petfirst Healthcare LLC (U.S.)
- Anicom Holdings Inc. (Japan)
- RSA (U.K.)
- ipet Insurance (Japan)
- The Oriental Insurance Company Ltd. (India)
- Figo Pet Insurance, LLC (U.S.)
- Direct Line (U.K.)
- Animal Friends Insurance Services Limited (U.K.)
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