April 23, 2024
Pet Insurance Market

Pet Insurance Market Is Estimated To Witness High Growth Owing To Increased Adoption Of Technology In Pet Monitoring

Pet insurance provides comprehensive coverage to dogs and cats against illnesses, injuries, hereditary or congenital conditions. It covers vet visits, prescription medication, and even hospitalization or surgery if needed. Pets are considered as valuable family members by many owners, as a result, people are increasingly opting for pet insurance to cover the rising veterinary costs. The Global Pet Insurance Market is estimated to be valued at US$ 11.05 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Pet Insurance market are 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.

The key opportunities in the market include growing awareness about pet insurance and health benefits, rising expenditure on pet care, and increasing penetration of pet insurance in developing economies. Technological advancements like wearable devices and monitoring systems for pets enable owners to access real-time health data which has boosted demand for pet insurance offerings.

Market drivers

Increased adoption of pet monitoring technology: Advancements in wearable tracking devices and activity monitors for pets have enabled owners to remotely monitor their pet’s vital signs and activities. This has boosted demand for added medical coverage through pet insurance plans. Technology helps detect health issues early, reducing future treatment costs which is encouraging more owners to opt for insurance.

Rising pet ownership: The growing humanization of pets and view of them as family members has led to a rise in pet adoption globally. More owners treating pets like family means increased healthcare spending to ensure their well-being. This expanding pet population base is acting as a key driver for the growth of the pet insurance market.

Current Challenges in Pet Insurance Market
With the growing pet humanization trend, pet owners are increasingly willing to spend on their fur babies for their wellbeing. However, the pet insurance penetration remains quite low. High premiums compared to basic vet care costs deter many from opting for insurance. Educating Pet Insurance Market Demand about long term savings through insurance is a challenge. Lack of standardization across policies also confuses customers.

SWOT Analysis
Strength: Offers financial protection against unexpected vet bills. Removes financial barrier for advanced treatments.
Weakness: Premium costs. Coverage limits and exclusions in some policies.
Opportunity: Growing pet owning population and expenditure presents scope. Educating customers can boost demand.
Threats: Economic downturns may impact spending ability. Changes in regulations can impact premium rates.

Geographical Regions
North America accounts for the major share currently due to high pet ownership and expenditure in the US and Canada. Europe is another key region driven by developed markets like the UK, Germany, and France. The Asia Pacific region is expected to witness the fastest growth during the forecast period supported by factors like rising incomes, nuclear families and urbanization in large countries like India and China.

Fastest Growing Region
The Asia Pacific region is poised to emerge as the fastest growing market for pet insurance during the forecast period from 2024 to 2030. This can be attributed to rising pet adoption, increasing pet humanization trend and growing expendable incomes in developing Asian countries such as India and China which are driving up pet care spending including on insurance.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it