Along with this the greater emotional bond created by the inculcation of this concept has encouraged the consumer to go an extra mile for their pet. The pet insurance measure being one of them. Pet insurance is a policy which is purchased by the consumer to offset the overall pet medical bill. It is like human health insurance but is with respect to the health and veterinary cost of the pet. The report titled global pet insurance market outlook 2026 published by bonafide research categorizes the market into different segment on the basis of animal type, insurance type, end-user. All these segments are studied upon with regional and country wise bifurcation of the market. The report along with this also consists the analysis of major players in the market.
According to the report the global pet insurance market was valued at USD 6.63 billion in the year of 2022 with a predicted growth rate of 10.99% in the coming years. This virtuous growth rate in the market is observed due to many different economic and social reasons. Firstly, the improving economic condition of the people across the globe which facilitate higher disposable income has increased the spending power of the consumer. With this there has been an increase in the adoption rate of pets in many different regional markets. One of the leading factors for this is the rise in the population of single home residents who look for companionship along with the rise in population of the geriatrics around the world. With this increase in pet adoption pet related products also observe a steep incline. The pet insurance market therefore is growing forward with this social trends. The insurance market is driven by the value of emotions like the grief associated with the loosing of loved pets. Further, many prominent incidents of human cruelty, accidents, thefts, and problems during old age create a sense of trauma in pet parents. These people therefore look for some sort of financial aids to provide the pet with the best services. Pet insurance agencies use these traumatic emotions to sell their products, and thus making the insurance look like a viable solution. The accident & illness segment for its wide area of coverage has been preferred in the global market, with the segment accounting for more than 90% of the total market share in the year. This type of insurance cover almost all the risk which can be faced by the pets. Another factor which has influenced the growth of the market in a positive way is the increasing cost of the pet health services and the rising awareness of such insurance amongst the consumer which is attributed to the extensive advertising activities carried out by the insurance companies across the globe. However, in developing countries where there has been a major shift of population to urban locations the accident only insurance has gained momentum due to the lower cost of premium and adequate coverage from various risks.
The dog insurance segment accounts for almost 75% of the total market share globally, this is since the adoption of dogs have significantly increased in recent years, as these animals are excellent pets for majority of the people. The insurance for these pets has increased because of the advent rise in the cases of cancer in dogs with the disease being the reason for 47% of the deaths in the last decade. The treatment for this disease is often expensive and so the consumers seek financial aid with using products like insurance.
The region of north America which consist of the USA, Canada and Mexico has around 35% of the global share. This market is greatly affected by the misuse of trust which is one of the major factors obstructing the penetration of the market in the region. The consumers on this market do not trust the insurance companies with the idea that the company will not provide compensation when the day comes. In case of the US which is the biggest market in the region the consumer spends about USD 14 billion on veterinary bills but only US dollar half billion comes from insurance premium. The marketing challenge in the region is that either the population is unaware of the pet insurance product or views it with suspicion. Out of these half-knowledge potential customers, the majority pick up strong preference towards the accident & illness policies, which contributed to over 97% of the market in 2016. Even now, however, insurance generally makes sense only for cash-flow-challenged owners who fear they will not have the money to cover their best friend's vet bill. So far, insurers have offered coverage for pets under lifestyle plans and would mostly pay only for the death or disability of the pet. Unless it can be categorized as an injury, dental treatment will not be covered. Claims arising from skin-related treatments will not be admissible, neither will expenses incurred due to spaying covered. The region especially in case of the untied states have observed an increase in per pet spending based on the macro argument that pets are substitute for kids and they are increasingly favourably priced relative to the alternative.
In the Asian countries, pet ownership is on the rise, the growing animal populations, changing demographic structure, socioeconomic conditions, and the acceptance of the humanism concept in the different countries have been major market drivers in the countries of this region. These can range from more than a hundred dollars for a routine annual check-up to USD 20,000 for major surgery. Further, Due to the growing pet-loving culture in Asian countries, more people are keeping pets and they are also more willing to spend on them. This includes getting the right pet insurance plans to ensure that their pets get the required medical treatment in times of accidents and illnesses. Along with the increasing prevalence of chronic diseases in pets, a growing number of pet owners are now seeking pet insurance. The region is highly-priced sensitive, the lifetime coverage segment is expected to be the most lucrative option. Though the complaint rates in pet insurance are relatively low, a look into the marketplace, an insurer would suggest that the firms should provide clearer information about the products they purchase in order to minimize policies being acquired that ill-suit a consumer’s needs. The high cost of pet insurance is expected to be a market hurdle the growth. The poor understanding of the insurance policies that do not provide complete information and cover only essential points is the main consuming challenge in the Asia Pacific Pet Insurance market.
Pet owners are more likely to accept pet medical insurance when it is brought to their attention by their veterinarian, so client education is the key in the European region. Lack of availability and broader awareness are commonly cited as reasons for low penetration rates in the general markets. What might be more surprising to hear than that the pet insurance products have been widely available in markets for decades in Europe! The first product to hit the UK market was introduced four years before the first US product. Veterinarian acceptance was high, with much of the pet owner education happening within veterinary hospitals. Invoices were paid and veterinary treatment plans were never questioned. The real-time connection to the veterinary community and specialist approach ensured the product continued to evolve and keep up with medical advancements and available treatment options. Britain is known as a nation of animal lovers. This is just as well since the bills for looking after domestic pets can be breathtakingly expensive. The penetration rates are particularly interesting against the backdrop of the universal health care system. In the UK, health care is a universal right, granted at no cost to its citizens. With the limited practice of paying for human healthcare coverage, one could argue purchasing a policy for a pet would be an even more abstract practice. And yet, pet insurance has been widely adopted for decades.
Despite some turmoil in the economy, the Latin America region has established itself as one of the fast-growing pet markets in the world. However, the people in the region still do hesitate to spend on the third-party service for their pets. Yet, with the increasing awareness and change in perception, people are willing to spend more on services like pet insurance and veterinary attention. On the other hand, consumers are struggling to look after their pets’ necessities as the cost-of-living rises. However, as Latin American people shifted from pet ownership to pet parenthood, opportunities in every pet care segment have increased for any company that wants to capitalize on it. Pet insurance even in Brazil is far less than the number of pets in the country. This is due to the rich-poor divide, the pet dogs owned by upper-class Brazilians are looked after by their owners. Whereas the pets who grow old or seriously ill- their owners simply abandoned, as the owners either cannot afford to spend after their pets or they do not care enough to-dos so, thus the demand for pet insurance is extremely weak in the country.
The rising share of middle-age groups is driving the demand for the market in middle east and Africa and is to increase the awareness of the need for pet health insurance thereby tapping into the unexplored markets of the countries. Pet ownership is on the rise due to the growing number of single professionals, empty-nesters, couples who delay having children, and families who need additional guard dogs. Up until recently, there were no pet insurance firms in 2016, when it comes to horses, equine insurance was available through international and local companies. The Horse UAE provides owners different insurance plans that include veterinary costs, major medical and colic surgery, mortality, loss of use, and third-party insurance. Most of the dog insurance demand is met by expatriates as dogs are regarded ‘bad omen’ in Islam. However, the dog insurance type leads the market with a market share of nearly 75% in the year 2020. The extremely hot climate of the country is more harmful to dogs than to cats. Thus, the share of Accident and Illness policy is prevalent in the country, especially for dogs. Accidents Only& Endorsements are consumed mostly by dog owners as cats are house pets and do not need regular walking.