Market Insights - Industry Research Report

Pet Insurance Market

Pet Insurance Market Analysis by Policy Coverage (Accident and Illness, Accident Only, and Others), By Animal Type (Dogs, Cats, and Others), By Sales Channel (Broker, Agency, and Others), and By Region – Global Industry Overview, Size, Share, Growth, Premium Insights, Market Intelligence, Complete Analysis, Historical Data, and Forecasts 2023 – 2030

The Global Pet Insurance Market was Worth USD 9.3 billion in 2022 and is Estimated to Grow to USD 31.13 billion by 2030, with a CAGR of Approximately 16.3 % over the Forecast Years From 2023 To 2030.

Pet Insurance Market Overview

Pet insurance is a policy bought by the pet owner to pay part or in total for the veterinary treatment of the insured pet’s illness or injury. Some policy also covers the pet’s death or in case lost or stolen. Private carriers often offer the highest levels of coverage at the most affordable prices for insurance plans. Top insurance enables a variety of innovative pet retention programs. Customers frequently select multi-pet insurance policies that cover numerous dogs under one plan and various insurance plans that cover dogs of different ages. Such laws enable private businesses to dominate the pet insurance market globally. The pet insurance market is expanding due to efforts made by current providers to inform customers about rising veterinarian costs and the many benefits of pet medical insurance plans. The expansion of the global pet insurance market is predicted to be driven by increased demand for pet insurance to lower out-of-pocket payments for major conditions like cancer and unintentional injuries. Numerous barriers and challenges will prevent the market’s growth. The pet insurance market could experience slower development throughout the projection period due to risks to pet insurance providers, entry hurdles, and fierce competition. Nevertheless, technological advancements and untapped market potential offer significant growth prospects.

COVID-19 Impact:

Pet owners, veterinarians, veterinary clinics, and animal health companies all faced difficulties due to the COVID-19 pandemic. However, the sector quickly started implementing protective measures to ensure access to veterinary care and other services in response to the pandemic. The difficulties posed by the pandemic also made pet owners aware of the benefits of obtaining pet insurance coverage to lower financial risk. Pet ownership increased significantly in 2020. Cats and dogs were the two most common pet species. Almost 26% of pet owners in the U.K. purchased a pet during the COVID-19 pandemic, with approximately 47% of respondents purchasing pets for the first time.

Market Drivers

Due to an increase in pet ownership, there is a surge in demand for pet insurance plans. The concept of pet humanization is becoming increasingly popular, which is also driving the need for pet grooming and care products. Owners are willing to spend more on their pets to ensure a healthy and happy life, especially millennial owners. Moreover, several nations globally have seen a significant increase in adopting animals, such as dogs and cats, as companion animals. Not only are dogs and cats the most popular pets, but they are also believed to enhance physical and mental wellness in people. Furthermore, in response to shifting consumer demand, pet insurance providers now provide customized packages like multi-pet insurance. They concentrate on the packages based on the lifespan and incident of the pet.

Restraints

Some pet owners in developing nations may not be aware of pet insurance coverage due to a lack of pet care knowledge, limited income, and animal healthcare facilities, among other potential market limitations. As a result, pet insurance sales may be affected by the high price of pet care products, a lack of knowledge about pet insurance, and high premium costs.

Segmentation

The global pet insurance market has been segmented into policy coverage, animal type, and sales channel.

  • Based on policy coverage, accident & illness, accident only, and others are segments of the global pet insurance market. In 2021, the accident and illness category led the market and will also contribute the largest revenue share. High veterinarian treatment and diagnostic expenses, an increase in companion animals, and more awareness about pet insurance are the main drivers of this expansion. Pet insurance providers most frequently provide accident and illness coverage. These offer coverage for various issues, including medications, diagnostic tests, and acute and chronic illnesses. Since accident and illness insurance provides full coverage to pet owners, the segment is anticipated to grow faster over the next few years.
  • Based on animal type, the global pet insurance market is segmented into dogs, cats, and others. In 2021, the dogs’ segment was the market leader and source of the largest revenue. Horses, small mammals, etc., are anticipated to experience the fastest CAGR growth. Growing pet adoption, developing insurance companies’ service offerings, and rising disposable income in important areas are the main drivers of this share. In the European Union, 88.0 million households had at least one pet in 2020. One hundred ten million cats, 89 million dogs, 51 million birds, 29 million small animals, and 9 million reptiles were estimated to be kept as pets. Future market expansion is anticipated to be fueled by the rising pet population in the area and the availability of different insurance policies to accommodate varied pet demands.

Regional Landscape

In 2021, Europe dominated the pet insurance market and held the largest revenue share. It is due to the growing use of pet insurance, increased pet ownership, and the presence of important corporations. By 2017, pet insurance coverage covered 23.0% of pets in the U.K. and 30.0% of pets in Sweden, and it was projected that this penetration would rise over time. Important market participants like Petplanare have their headquarters in the United Kingdom, whereas DFV has theirs in Germany. These businesses regularly carry out different strategic measures to grow their market share and support regional development.

Competitive Landscape

Some of the main competitors dominating the global pet insurance market include-

  • Trupanion Inc
  • Deutsche Familienversicherung AG (DFV)
  • Petplan (Allianz)
  • Animal Friends Insurance Services Limited
  • Figo Pet Insurance LLC
  • Direct Line
  • Nationwide Mutual Insurance Company
  • Embrace Pet Insurance Agency LLC
  • Anicom Insurance
  • ipet Insurance Co Ltd
  • MetLife Services and Solutions LLC
  • Pumpkin Insurance Services Inc

Recent Developments

  • December 2021: Due to a partnership between Trupanion and Chewy, more than 20 million Chewy customers will have access to a unique portfolio of pet wellness and health insurance solutions. Clients will have the option of wellness programs, preventive treatment, and all-inclusive insurance coverage for illnesses, accidents, and chronic conditions owing to this strategic cooperation. This partnership expanded the variety of healthcare products and services.
  • October 2019: Warburg Pincus purchased Petplan. Warburg Pincus’ capabilities and money were made accessible to Petplan through the acquisition. Due to this transaction, Warburg Pincus dramatically enhanced its investment in the pet insurance sector and, consequently, PetPlan’s operations.

Global Pet Insurance Market is segmented as follows:

Pet Insurance Market by Policy Coverage Outlook (Revenue, USD Million, 2017 – 2030)

  1. Accident and Illness
  2. Accident Only
  3. Others

Pet Insurance Market by Animal Type Outlook (Revenue, USD Million, 2017 – 2030)

  1. Dogs
  2. Cats
  3. Others

Pet Insurance Market by Sales Channel Outlook (Revenue, USD Million, 2017 – 2030)

  1. Broker
  2. Agency
  3. Others

Pet Insurance Market by Region Outlook (Revenue, USD Million, 2017 – 2030)

  1. North America
    • The U.S.
    • Canada
    • Mexico
  2. Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  3. Asia Pacific
    • China
    • Japan
    • India
    • New Zealand
    • Australia
    • South Korea
    • Southeast Asia
    • Rest of Southeast Asia
  4. The Middle East & Africa
    • Saudi Arabia
    • UAE
    • Egypt
    • Kuwait
    • South Africa
    • Rest of the Middle East & Africa
  5. Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
Pet Insurance Market Report Scope
Report Attribute Details
Market Size Value in 2022 USD 9.3 billion
Revenue Forecast in 2030 USD 31.13 billion
Growth Rate CAGR of 16.3 % from 2023 to 2030
Base Year for Estimation 2022
Historical Data 2017 – 2022
Forecast Years 2023 – 2030
Quantitative Units Revenue in USD million and CAGR from 2023 to 2030
Report Coverage Revenue forecast, company ranking, Trends
competitive landscape, and growth factors
Segments Covered Policy Coverage, Animal Type, Sales Channel, and Region
Regional Scope North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Country Scope U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others
Key Companies Profiled Embrace Pet Insurance Agency, LLC, Figo Pet Insurance LLC., Hartville Group, Nationwide, Pet Assure Corp., PetFirst, Ipet Insurance, Pets Best Insurance Services, LLC, Royal & Sun Alliance (RSA), and Trupanion.

Frequently Asked Questions

The main reasons anticipated to propel the pet insurance market during the forecast period are rising demand for pet insurance to help limit out-of-pocket expenditure and increasing awareness related to pet insurance.
According to the report, the global pet insurance market was worth USD 9.3 billion in 2022 and is estimated to grow to USD 31.13 billion by 2030, with a compound annual growth rate (CAGR) of approximately 16.3 % over the forecast period.
In 2021, Europe dominated the pet insurance market and held the largest revenue share. It is due to the growing use of pet insurance, increased pet ownership, and the presence of important corporations.
Some of the main competitors dominating the global pet insurance market include – Embrace Pet Insurance Agency, LLC, Figo Pet Insurance LLC., Hartville Group, Nationwide, Pet Assure Corp., PetFirst, Ipet Insurance, Pets Best Insurance Services, LLC, Royal & Sun Alliance (RSA), and Trupanion.

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