Pet Insurance Market Size & Growth Analysis to 2030

The global pet insurance market size is anticipated to register a significant CAGR of over 7% during the forecast period 2021 to 2027 and valued at around USD 7 billion in 2020. The rising adoption of pets and the increasing incidence of diseases in dogs are some primary factors to drive the market growth. The increasing demand for pet insurance, helping to limit out-of-pocket spending on serious medical conditions, such as cancer, and accidental injuries, is projected to drive growth in the near future. Pet insurance includes full or partial reimbursement of the cost of pet care in the event of an illness or accident.

Market Drivers:

Increasing Pet Ownership: Pet ownership has been on the rise globally, with more people welcoming pets into their homes and considering them as part of their family. As the number of pet owners increases, the demand for pet insurance also grows. Pet owners recognize the importance of protecting their pets’ health and well-being, leading to a higher demand for insurance coverage.

Rising Veterinary Costs: Veterinary care costs have been steadily increasing over the years. Advanced diagnostic tools, specialized treatments, and improved veterinary services have contributed to higher expenses. Pet insurance helps offset these costs by providing coverage for veterinary visits, surgeries, medications, and other treatments. As pet owners face the financial burden of veterinary care, they are more inclined to seek insurance coverage for their pets.

Increasing Awareness of Pet Health: There is a growing awareness of the importance of preventive healthcare for pets. Pet owners understand the significance of regular veterinary check-ups, vaccinations, and preventive treatments to maintain their pets’ health. Pet insurance often includes coverage for preventive care, such as vaccinations and wellness exams. As pet owners prioritize preventive healthcare, the demand for insurance coverage that includes these services increases.

Advances in Veterinary Medicine: Advances in veterinary medicine have resulted in more treatment options and improved healthcare outcomes for pets. However, these advanced treatments can be expensive. Pet insurance provides financial assistance to pet owners, allowing them to access the latest treatments and procedures for their pets without worrying about the cost. The availability of advanced veterinary treatments and the desire to provide the best care for pets contribute to the demand for pet insurance.

Human-Animal Bond: The bond between humans and their pets has strengthened over the years. Pets are considered companions and family members, and pet owners want to ensure the best possible care for their furry friends. Pet insurance offers peace of mind to pet owners, knowing that they can provide necessary medical care for their pets in case of illness or injury. The emotional connection between pet owners and their pets drives the demand for insurance coverage.

Insurance Industry Promotions and Partnerships: Insurance companies and pet-related organizations often collaborate to promote pet insurance and create awareness among pet owners. These collaborations include partnerships with veterinary clinics, pet shelters, breeders, and pet supply retailers. Such promotions and partnerships help educate pet owners about the benefits of pet insurance and drive the demand for coverage.

Changing Attitudes Towards Pet Healthcare: Attitudes towards pet healthcare have shifted over the years. Pet owners are increasingly proactive in seeking medical care for their pets, just as they would for themselves. This change in mindset has led to an increased demand for pet insurance as pet owners recognize the importance of having financial protection for unexpected medical expenses.

Customizable Coverage Options: Insurance companies now offer a range of customizable coverage options to cater to different pet owners’ needs and budgets. This flexibility allows pet owners to choose the level of coverage that suits their requirements. Customizable coverage options enhance the appeal of pet insurance, leading to increased market demand.

Market Attributes:

Market Insights:

The global pet insurance market is segmented into policy type, animal, sales channel, and geography. On the basis of policy type, the market is further segmented into an accident only, accident & illness, and others. The accident and illness insurance segment held the largest market share in 2020 by revenue. An increase in companion animal population and the high cost of diagnosis and treatment are some major factors that contributed the segment growth. In contrast, the accident segment is accounted to hold a sustainable market share due to increasing health issues in animals and high treatment costs.

On the basis of animal type, the pet insurance market is divided into cats, dogs, and other animals. The dog insurance segment has dominated the market in 2020 by revenue. The segment growth is attributed to the increasing adoption of dogs across the world. According to the North American Pet Health Insurance Association (NAPHIA), in 2017, Rabies, parvovirus, kennel cough, heartworm, diabetes, and cancer are some major diseases seen in dogs, and over 89 million dogs are counted in the United States.

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The pet insurance comprehensive study offers an in-depth analysis of industry trends, market size, competitive analysis, and market forecast – 2020 to 2027. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

Global pet insurance market size and forecast were obtained by using “Bottom-up” and “Top-down” approaches. Extensive secondary research was conducted to understand the market insights and trends, followed by primary interviews to further validate the information sourced. The report provides both, qualitative and quantitative analyses of the market, the competitive landscape, and the preferred development strategies of key players which help to formulate competitive market strategies and make informed decisions.

The pet insurance market research report presents the analysis of each segment from 2018 to 2027 considering 2020 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2021 to 2027.

Historical & Forecast Period

• 2018-19 – Historical Year
• 2020 – Base Year
• 2021-2027 – Forecast Period

Market Segmentation:

By Policy:

• Accident only
• Accident & illness
• Others

By Animal:

• Cat
• Dog
• Others (Rabbits, Horses, and other animals)

By Sales Channel:

• Agency
• Broker
• Bancassurance
• Direct Writing

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Geographic Coverage:

Geographically, the pet insurance market report comprises dedicated sections centering on the regional market revenue and trends. The pet insurance market has been segmented on the basis of geographic regions into North America, Europe, Asia Pacific, and Rest of the World (RoW). The RoW segment consists of Latin America and the Middle East & Africa. The pet insurance market has been extensively analyzed on the basis of various regional factors such as demographics, gross domestic product (GDP), inflation rate, acceptance, and others. Pet insurance market estimates have also been provided for the historical years 2018 & 2019 along with forecasts for the period from 2021 – 2027.

Market Competition Assessment:

Key players operating in the global pet insurance market are Floracopeia Inc., UniKode S.A., Robertet Groupe, Lluch Essence Sl, and International Fragrance and Flavor Inc. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Floracopeia Inc.
• UniKode S.A.
• Robertet Groupe
• Lluch Essence Sl
• International Fragrance and Flavor Inc.
• Fleurchem Inc.
• Frager S.A.
• Ernesto Ventos Sa
• Haiti Essential Oil Co., SA.

Key Questions Answered by Pet Insurance Market Report:

• Global pet insurance market forecasts from 2021-2027
• Regional pet insurance market forecasts from 2021-2027 covering Asia-Pacific, North America, Europe, Middle East and Africa, and Latin America
• Country-level forecasts from 2021-2027 covering 15 major countries from the aforementioned regions
• Pet insurance submarket forecasts from 2021-2027 covering the market by policy, by animal, by sales channel, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis pertaining to pet insurance market
• Analysis of the key factors driving and restraining the growth of the global, regional and country-level pet insurance markets from 2021-2027
• Competitive Landscape and market positioning of top 10 players operating in the pet insurance market