The market for pet insurance is anticipated to grow at a CAGR of around 7.2% from 2020 to 2027 and expected to reach the market value of around US$ 11,155.9 Mn by 2027.
Pet insurance is an insurance policy bought by a pet owner to lessen the overall cost of expensive veterinary bills. These insurance policies are way similar to the health insurance policies for humans. Some pet insurance plans also cover the death or loss of the insured pet. This can also eliminate the risk of high expenditure for medical treatment of the pet. Additionally, the features and benefits associated with pet insurance include customized plans, Insurance Regulatory and Development Authority (IRDA) approval, the sum assured, add-on cover, third party liability, and variety of covers among others.
The pet insurance market is gaining growth owing to the increasing number of pet adoption and rising awareness regarding pet insurance. The increasing prevalence of dog ownership not only for bonding purposes but also for status symbols across the globe is additionally supporting the market growth. The expanding acceptance of sophisticated and costly treatments, good terms between hospitals and insurance company managers, and growing concern towards animal healthcare are additional factors boosting the market growth.
On the other hand, lack of standardized pet health codes for reimbursement, lack of awareness about pet insurance in some economies of Asia Pacific, and high cost associated with the pet insurance plans are likely to hinder the growth to an extent over the forecast period from 2020 to 2027.
Segment Instance of Global Pet Insurance Market
Dog Insurance held maximum share in the Global Pet Insurance Market
In 2019, dog insurance is leading the market with a major revenue share and the segment is also estimated to lead the market with dominating share (%) in terms of both revenue and volume (number of insurance). The loyalty and kind of affection that dogs bring with them is a major factor bolstering their adoption and care in the global market. In the US around 90 million dogs are owned by the residents. The increased risk of chronic conditions in dogs like diabetes and obesity that require insulin injections and dietary modification is further projected to bolster growth over the forecast period from 2020 to 2027.
North America accounted for the maximum revenue share in the global market
In 2019, North America held the maximum share in the pet insurance market, and the region is also projected to maintain its dominance over the forecast period from 2020 to 2027. The high adoption rate of pet animals in the country like the US and Canada is majorly contributing to the regional market value.
According to the American Society for the Prevention of Cruelty to Animals (ASPCA), around 6.5 million companion animals enter animal shelters in the United States every year. The mentioned figures include around 3.3 million dogs. Additionally, according to a National Pet Owners Survey conducted by the American Pet Products Association (APPA) in 2017-2018, approx 68% of the US households own a pet and the survey has also revealed that the total expenditure on pets was around US$ 69,400 million, in 2017.
Asia Pacific is anticipated to exhibit fastest growth over the estimated period from 2020 to 2027
The increasing disposable income of people is supporting both adoption of pet animals as well as spending on their insurance is driving the market growth. The increasing awareness about the benefits of insurance policies is further bolstering the regional market value. The major insurance provider is also spreading awareness about the policies with their marketing activities and expansion plans are further bolstering the regional market value. Additionally, the high cost associated with the treatment of pets that incur a burden on the pet owners is expected to create demand over the forecast period.
Key Market Players
The players profiled in the report include Agria Pet Insurance, Embrace Pet Insurance Agency, Hartville Group, Nationwide Pet Insurance, Pet first Healthcare, Pethealth Inc., Petplan Pet Insurance, Petsecure Pet Health Insurance, PetSure Pty Ltd., and Royal & Sun Alliance (RSA).
Market By Policy Type
Exotic Pet Insurance
Market By Policy Coverage
• Accidental Cover
• Accident & Illness Cover
• Accidental Cover
• Accident & Illness Cover
Market By Provider
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
The market for pet insurance is expected to reach a market value of around US$ 11,155.9 Mn by 2027.
The pet insurance market is expected to grow at a CAGR of around 7.2% from 2020 to 2027.
Dog Insurance is the leading segment by policy type in the pet insurance market
The increasing number of pet adoption, rising awareness regarding pet insurance, increasing prevalence of dog ownership, and expanding acceptance of sophisticated and costly treatments are some of the key factors driving the market growth.
Agria Pet Insurance, Embrace Pet Insurance Agency, Hartville Group, Nationwide Pet Insurance, Pet first Healthcare, Pethealth Inc., Petplan Pet Insurance, Petsecure Pet Health Insurance, PetSure Pty Ltd., and Royal & Sun Alliance (RSA) are the prominent players in the market.
North America held the highest market share in the pet insurance market
Asia Pacific is expected to be the fastest growing market over the forecast period