Pet Insurance Market Size, Share & Trends Analysis Report By Product (Accident and Illness, Accident Only), By Animal Type (Dogs, Cats), By Sales Channel (Broker, Agency), By Region, And Segment Forecasts, 2019 - 2028

Report Overview

The global pet insurance market size was valued at USD 3.33 billion in 2018 and is anticipated to grow at a CAGR of 16.3% over the forecast period. Rising pet adoption and growing prevalence of feline- & dog-related diseases are major drivers for this market. Moreover, rising demand for pet insurance to help limit out-of-pocket expenditure on critical medical conditions, such as cancer, and accidental injuries is anticipated to boost the growth in the near future.

The anticipated rise in companion animal population would increase the demand for veterinary healthcare facilities. Veterinary services are capital intensive and require veterinary doctors, skilled technicians, and specially designed diagnostic equipment. According to The American Pet Products Association report 2018, the overall spending in the U.S. pet industry increased by 4.1% from 2016 to 2017. Furthermore, veterinary care spending increased by 7% from USD 15.95 billion in 2016 to USD 17.07 billion in 2017.

The pet insurance business has seen high growth since its inception. Currently, the U.S. market has more than 12 players operating in the country, many of these players market multiple white-label or co-branded products with the help of pet insurance Managing General Agents (MGA). An MGA is a licensed company that earns commission from the Association for Professionals in Infection Control and Epidemiology, Inc. (APIC), to underwrite and source pet health insurance on behalf of APIC. However, obtaining a pet insurance broker license is not easy, as it is categorized under property insurance and requires following a certain set of rules and regulations established by the local government.

NAPHIA members in the U.S. collectively represent almost 20 different pet insurance brands marketed across the country. Furthermore, according to the Casualty Actuarial Society, there is an ongoing rise in demand for pet insurance actuary in the U.S., as of 2018, which represents new opportunities for actuarial entrepreneurs.

Furthermore, advancements in pet insurance, such as vet direct pay by Trupanion, are revolutionizing medical insurance for cats & dogs by eliminating the reimbursement model. Similarly, pet insurance in Europe is growing rapidly due to strict pet insurance regulations in countries such as Sweden.

Product Insights

On the basis of product, accident and illness pet insurance had the largest market share as of 2018. The key drivers of the segment are high veterinary treatment & diagnostic costs, the rise of the companion animal population, and an increase in the awareness about pet insurance. Lifetime insurance is a comprehensive plan that provides life cover for animals. The contractual policy covers accident & illness, cost of surgery, and cost of hospitalization. This is the most favorable policy for young animals.

Accidents also held a substantial share of the market. The key drivers of the segment include an increase in health issues in animals and high treatment costs. Accident only is applicable only for animals that are not eligible for a lifetime and non-lifetime policies. In addition, older animals with pre-existing conditions can be covered with accident only policy. These policies are inexpensive compared to other types of pet insurance. Embrace, Real Insurance, Pet Plus Us, Bupa, AKC pet Insurance, and Healthy Paws are major players in this segment. Insurance providers are focused on increasing penetration by targeting customers from online sales channels. For instance, in February 2018, Healthy Paws collaborated with Roover.com in order to increase its market penetration.

Animal Type Insights

The Dogs insurance segment was the dominant segment by animal type in 2018. An increase in the number of dog owners across the globe is a key driver for this segment. Furthermore, the increasing importance of pet health and high veterinary treatment costs are propelling market growth. According to the North American Pet Health Insurance Association (NAPHIA) 2017, there are 89.7 million dogs in U.S. Rabies, parvovirus, kennel cough, heartworm, diabetes, and cancer are the major diseases observed in dogs. Some of the major players in this segment are Petplan Limited; Trupanion, Inc.; Nationwide Mutual Insurance Company; Hartville Group, Inc.; Pethealth, Inc.; PetFirst Healthcare LLC; etc.

The cat segment is anticipated to grow at an exponential rate over the forecast period. Cats are increasingly being adopted in Canada and preferred over dogs. Cat insurance is available in two types: lifetime and non-lifetime. The most prevalent diseases in cats are Feline Immunodeficiency Virus (FIV), Feline LeU.K.emia Virus (FelV), heartworm, high-rise syndrome, ringworm, upper respiratory infections, worms, rabies, and ringworm. Some key players in this segment are Petplan Limited; Trupanion, Inc.; Nationwide Mutual Insurance Company; Hartville Group, Inc.; Pethealth Inc.; and PetFirst Healthcare LLC.

Sales Channel Insights

Agency held the dominant share of the sales channel segment as of 2018. A large customer base is a key driver of this segment. The growing need for these services and the rise in companion animal population are fueling growth.

Bancassurance is anticipated to exhibit lucrative growth over the forecast period. Large, established bank networks across the globe can be attributed to this growth. Some of the major banks are Tesco Bank, M&S Bank, First Citizen Bank, Midwest Heritage Bank, and German American Bank. Furthermore, this segment is growing due to geographical expansion. For instance, in April 2018, CIMB Bank in Singapore was the first to launch pet insurance for a wide variety of pets.

Regional Insights

In 2018, Europe held the dominant share of the pet insurance market. According to the Department of Clinical Veterinary Science and the Pet Food Institute, 23.0% of pets in the U.K. and 30.0% of pets in Sweden were covered as of 2017. However, only 1% of the U.S. pets were covered by pet insurance. The presence of large companies and favorable insurance policies are further fueling growth in this region.

North America held the second-largest revenue share as of 2018. The key drivers of the market were a rise in companion animal population and an increase in awareness related to pet insurance. Furthermore, high veterinary healthcare costs and per capita income are aiding the further market growth. As a large number of pets are still uninsured in this region, the growth potential is high.

Asia Pacific region is expected to show lucrative growth over the forecast period, owing to the growing trend of pet adoption and development of the economy in this region. Furthermore, an increase in awareness regarding veterinary health and the rise in companion animal population are other drivers of the market. According to the International Monetary Fund 2019, the per capita income of Asia Pacific was USD 7.35 thousand in 2019 and is expected to reach USD 10.18 thousand by 2024.

Pet Insurance Market Share Insights

The industry is marked by the presence of various small and large companies, and the market is competitive. Some of the key players are Petplan Limited; Trupanion, Inc.; Nationwide Mutual Insurance Company; Hartville Group, Inc.; Pethealth, Inc.; PetFirst Healthcare LLC; Royal & Sun Alliance Insurance Company of Canada, Inc.; and Embrace Pet Insurance Agency, LLC.

Companies are involved in various strategies, such as launch of new policies, mergers & acquisitions, and regional expansion, to capture a larger share of the market. For instance, in April 2019, Royal and Sun Alliance backed insurance technology company Moreth>n launched fitness tracker for dogs in partnership with Pitpat, to reduce premiums and help maintain the good health of dogs. In July 2017, VitusVet partnered with Nationwide to provide a mobile app-based claim submission feature for pet owners. This improved the claims process for pet owners, which is expected to increase pet insurance adoption in the coming years.

Pet Insurance Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2028. For the purpose of this study, Grand View Research has segmented the global pet insurance market report on the basis of product, animal type, sales channel, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2028)

  • Accident and Illness

  • Accident only

• Animal type Outlook (Revenue, USD Million, 2014 - 2028)

  • Dogs

  • Cats

  • Others

• Sales Channel Outlook (Revenue, USD Million, 2014 - 2028)

  • Agency

  • Broker

  • Bancassurance

  • Direct Writing

• Regional Outlook (Revenue, USD Million, 2014 - 2028)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia