Germany Pet Insurance Market Size, Share & Trends Analysis Report By Coverage Type (Liability Insurance, Health Insurance), By Animal Type (Dogs, Cats), By Sales Channel (Agency, Broker, Bancassurance), And Segment Forecasts, 2023 - 2030

Report Overview

The Germany pet insurance market size was valued at USD 887.28 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 14.82% from 2023 to 2030. Growing pet ownership, supportive regulations, humanization of pets, and initiatives by market players are anticipated to drive the regional market growth. In January 2022, Luko, a French Insurtech startup, acquired Coya. This increased Luko’s customer base and helped it gain an insurance license in Germany. Also, some German states, for example, Brandenburg, Hamburg, Berlin, Lower Saxony, Thüringen, Niedersachsen, and Schleswig-Holstein, have made it mandatory for dog owners to have liability insurance for their pet dogs, thus propelling the market growth. The COVID-19 outbreak catalyzed the market growth with a surge in demand for health and liability insurance plans for pets. The country also witnessed a steep rise in pet adoption and ownership as people were forced indoors due to movement restrictions and quarantine protocols.

In January 2021, Deutsche Welle (DW) reported an exponential rise in demand for dogs and cats in the country. As per the German Kennel Club (VDH), in 2020, around 20% more pet dogs were purchased compared to previous years. The rise in single-person or small households in the country combined with an aging population is further expected to contribute to the growing pet population. According to a 2020 survey by Coya, an insurance provider for pets in Germany, the country has some of the best cities in the world to own and raise a pet. In fact, in its Best Cities for Dogs Index, Hamburg, Munich, Berlin, Cologne, and Frankfurt ranked in the top 30. The factors considered in the study included dogs/capita, number of vets/dogs, number of pet stores, dog-friendly restaurants, hotels, and parks in the infrastructure category.

Lifetime costs, abandoned dogs/year, dog waste fine, and dog waste survey factors were considered under the cost, regulation, and ownership category. The results indicated a rising trend of pet humanization that leads to more expenditure on pets and premiumization of pet products and services. Veterinary treatments such as cruciate ligament tear, ear infection, gastric torsion, skin tumor, and vaccination can cost around EUR 1,500, EUR 500, EUR 2,000, EUR 1,000, and EUR 70, respectively. The growing veterinary costs are thus another key driver expected to fuel the market growth. Market players, for example, Balunos offer multiple insurance plans for dogs, including dog accident insurance. The plan covers outpatient and inpatient treatment after an accident, surgery, unlimited annual compensation, body replacements (prostheses), follow-up treatment including accommodation costs after an operation, and physiotherapy. Balunos offers dog accident insurance in 3 price variants: bronze, silver, and gold, priced at EUR 8.58, EUR 12.14, and EUR 13.6 per month, respectively.

Liability insurance is mandatory in several states in Germany. This, combined with the rising need to lower the financial burden on damages caused by pets, is expected to increase the adoption of pet liability insurance. Liability insurance providers mainly offer plans for dogs and horses. For small pets such as cats, private liability insurance often covers the damage caused by small animal pets and no separate insurance is required. BavariaDirekt, Helden, Barmenia Insurance, and DFV are some of the key players providing pet liability insurance in Germany. Barmenia Insurance, for example, offers owner liability insurance for both dog and horse owners. Its horse owner liability insurance covers property damage, personal injury, financial loss, rental property damage, rescue & recovery costs, and damage to borrowed or rented riding equipment by horse, pony, donkey, or mule.

Coverage Type Insights

By coverage type, the largest share in the German pet insurance market was held by the health insurance segment in 2022. This is owing to an increasing number of pet health insurance policies offered by market players, pet humanization, and rising veterinary costs. Lifetime health insurance dominated the health insurance segment with a revenue share of over 72% in 2021. This is because lifetime insurance policies offer more comprehensive and long-term protection for securing pet health as compared to other types.

The surgery segment is expected to grow the fastest within the health insurance segment, followed by the accident-only segment. This is owing to market players offering tailored insurance plans targeting specific pet owner requirements at affordable premiums. The Liability Insurance segment is expected to grow the fastest at a rate of about 15% in the near future. As per German law, dog owners are legally responsible for damages caused by their pets, which may lead to a high financial burden for owners. This is a key driver expected to boost the demand and adoption of dog liability insurance in Germany.

Animal Type Insights

On the basis of animal type, the dogs segment dominated the Germany pet insurance market with a share of more than 55% in 2022. The others’ segment, on the other hand, is expected to advance at the fastest CAGR of over 15% during the forecast period. This is due to an increase in the number of companion animals, chronic diseases in pets, expensive veterinary treatments, and the need to lower financial risk.

According to the 2020 European Pet Food Industry and FEDAIF report, Germany has one of the largest pet populations in Europe. Cats were the most adopted pets in German households while dogs were a close second. The report pegged the country’s dog population at about 10.7 million in 2020 and the number is estimated to increase during the forecast period. With the growing pet population, vet visits, which can be expensive, are estimated to increase.

Costs for treatment can lead to a four-digit range in case of accidents or sickness. However, pet insurance provides coverage for such treatments, protecting pet owners from financial risks. Pet insurance plans for dogs cover a wide range of conditions, such as outpatient and inpatient treatment, health checks, preventive measures such as vaccinations, dental prophylaxis, flea & tick prevention, costs for medication, bandages, castration & sterilization, and operations. The growing need to lower financial risk and safeguard pet health is expected to drive the market.

Sales Channel Insights

By sales channel, the direct sales segment held the largest share of over 30% of the German Pet Insurance market in 2022. This is attributable to the high usage of direct sales strategies by key pet insurance providers. Deutsche Familienversicherung AG, for instance, reported that direct sales contributed to 87.3% of the company’s new business during HY 2020. The company also reported a 21.4% increase in online sales compared to HY 2019.

The others segment is expected to advance at the fastest CAGR of over 15% during the projection period. This is due to the increasing number of companies onboarding veterinary care providers and pet stores as a means to reach consumers or pet parents. Petplan, a leading company in the pet insurance market, for instance, attributed 4.5% of its revenue in 2020 to vets. Similar partnerships between insurance providers and other industry stakeholders are anticipated to contribute to the segment growth during the forecast period.

Key Companies & Market Share Insights

The German pet insurance market is competitive in nature. Major companies are involved in deploying strategic initiatives that include custom insurance plans, various pricing models, partnerships, and expansion of global footprint. For instance, in November 2020, SantéVet, a French company, launched its pet health insurance portfolio in Germany, entering the market. SantéVet offers dog and cat health insurance products. Its dog health insurance policy covers all risks and guarantees reimbursement of veterinary costs in the event of illness, surgery, or accident, at an all-in-one tariff. While the company’s cat insurance policy comes in 2 price variants and is tailored to the needs of outdoor and indoor cats.

DFV, on the other hand, expanded its cooperation with ProSiebenSat.1 Digital in May 2019, to launch a digital animal health insurance under the brand Petprotect. With this, it entered the emerging animal health insurance market in Germany. The company’s portfolio includes health insurance plans for dogs and cats, as well as dog liability insurance. Some of the key players in the Germany pet insurance market include:

• Petplan (Allianz)

• Barmenia Versicherungen aG

• ELEMENT Insurance AG

• Coya AG (Luko)

• DFV Deutsche Familienversicherung AG

• Getsafe GmbH

• Helvetia Insurance

• AGILA Pet Insurance AG

• SantéVet

• Balunos

Germany Pet Insurance Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the Germany pet insurance market report on the basis of coverage type, animal type, and sales channel:

• Coverage Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Liability Insurance

  • Health Insurance

    • Accident Only

    • Lifetime

    • Surgery

• Animal Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Dogs

  • Cats

  • Others

• Sales Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Agency

  • Broker

  • Direct

  • Bancassurance

  • Others