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Pet Insurance Market Will Grow At Highest Pace Owing To Rising Companion Animal Adoption

Pet Insurance Market Will Grow At Highest Pace Owing To Rising Companion Animal Adoption

The pet insurance market provides financial protection for veterinary costs and assists in covering the unexpected medical bills of pets. It is an attractive option for pet owners to budget and afford veterinary care treatments. There has been a rise in companion animal adoption among households, especially during the pandemic, boosting the demand for pet insurance plans. The market remains highly fragmented with the presence of various regional and global players offering a wide range of insurance plans for dogs, cats, and other pets. 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 rising trend of nuclear families and dual-income households with less time to take care of pets has increased the adoption of pet insurance plans for financial safety during medical emergencies or illnesses. Technological advancements like IoT-enabled health tracking devices, telehealth for pets, and digital tools to file insurance claims are simplifying the process and driving adoption rates among pet owners.

Market Trends

The Pet Insurance Market Demand  is witnessing notable trends like increasing demand for multi-pet discount plans as more households are keeping multiple pets. Insurers are offering discounted premiums to owners of multiple insured pets to boost sales. Another trend is the rise of customized wellness plans covering preventive care costs like vaccinations, de-worming, dental procedures, and checkups in addition to accident & illness coverages. This allows pre-empting future medical costs through routine care and maintains pet wellness.

Market Opportunities

Untapped opportunities exist to scale presence in developing Asian and Latin American markets through innovative distribution channels as pet ownership trends evolve globally. Insurers can tie-up with online pharmacies and e-commerce websites frequented by pet owners to build awareness and boost online sales. There also lies scope to develop policies for selective emerging new pet types like rabbits, birds, rodents owned by many households. Collaborating with veterinary clinics can aid customer acquisition and strengthen referral-based business models.

Impact of COVID-19 on Pet Insurance Market Growth

The COVID-19 pandemic has positively impacted the growth of the pet insurance market. During the pandemic, many people spent more time at home with their pets due to lockdowns and work from home arrangements. This increased the human-pet bonding and also made people more aware of the healthcare needs of their pets. However, the economic uncertainty caused by job losses and pay cuts during the pandemic restricted the demand for pet insurance to some extent. Now, as the pandemic situation improves with vaccination drives, the market is expected to witness strong growth over the coming years. Pet owners have become more concerned regarding the medical expenses of their pets. This will drive the need for pet insurance coverage going forward. The insurers are also expected to revise their policies and coverage to attract more customers in the post-pandemic scenario. Technological advancements like online purchase and claim settlement processes will further support the market expansion.

Geographical Regions with Highest Value Concentration in Pet Insurance Market

North America accounts for the largest share of the global pet insurance market in terms of value. This is attributed to factors like high pet ownership, growing expenditure on pet healthcare, and awareness about such insurance policies in countries like the US and Canada. Europe is another major revenue generator for pet insurance providers. Countries like the UK, Germany, France, Italy have a high density of pet population and customers' willingness to pay for insurance. However, the Asia Pacific region is projected to witness the fastest growth during the forecast period due to rising pet adoption, increasing disposable incomes, and improving awareness about pet insurance in economies like India, China, and Australia.

Fastest Growing Region for Pet Insurance Market

The Asia Pacific region holds immense growth potential for pet insurance market players. Pet humanization is growing across Asia with more single and nuclear families keeping pets for companionship. Also, the spending capability of the middle-class population is increasing rapidly in Asia Pacific countries. This allows them to spend more on pet healthcare and insurance. Further, countries like India and China are forecast to see high GDP growth over the coming years, supporting the purchasing power of customers. The insurers can achieve success by providing customized products, optimizing distribution reach to tier-2 and tier-3 cities, and promoting benefits of such policies via social media and veterinarian partnerships in Asia Pacific.

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