The world is moving from being pet owners to pet parents, being ready to go an extra step to give them a luxurious life. The fancy term of pet insurance is a policy purchased by the pet parents to offset the overall animal medical bills. Or in simple terms, it is similar to human health insurance specifically related to pets & veterinary costs. The research report titled Global Pet Insurance Market Outlook, 2026 by Bonafide Research categorizes the market in each of the following segments: based animal type, by insurance type, by end-user based on region, countries & major companies.
With the availability of an extra disposable income, people are willing to spend more on their pets, allowing the pet insurance market to USD 2.90 Billion in 2015. The rate of pet adoption sore high during the pandemic days with the need for companionship increasing among the young generation. As many people stayed at home or going on staycations, they feel they are more amenable to pets. This increasing adoption rate along with an evident incline in the health disorders in pets is to give a hike in the market growth rate at over 10% CAGR.
The fear of losing their loved pets is the major driver for the market. Many moving stories of grief of losing a pet to human cruelty, accident, theft, old age, or illness is a profound and traumatic experience to the pet parents. Insurance agencies use these emotions to sell their products, making the accident & illness policy segment hold an unbeatable share of 90% in 2015. The high preference of this segment is attributed to its comprehensive nature, covering the majority of common illnesses and accidents. Apart from this, the high veterinary treatment cost and the increasing awareness of such insurances created with extensive advertisements is to foster the market value. However, the accident-only segment is expected to gain more popularity, growing at a CAGR of 21%.
The dog insurance segment accounted for nearly 3/4th of the total pet insurance market in 2020, given the fact that dog adoption is high. Apparently, this human-friendly animal is at risk of being affected by cancer at the same rate as humans. Over the past decade, cancer is the leading death cause in around 47% of dogs. Such facts become hard for the pet parents to overlook and forcing them to sign up for insurance. However, with the increasing influence of cartoons and comics, the adoption rate of cats is expected to incline. This is to allow the market to grow with an anticipated CAGR of 13% in the coming years.
The agency segment as an end-user accounted for a share of more than 43% in the year 2020. The development of innovative insurance schemes coupled with various efforts to increase customer awareness and satisfaction will further fuel the segment expansion in the future. The Direct Writing providers are now focusing on various marketing strategies and competitive monthly premiums, which is to allow the segment to grow with an anticipated CAGR of 14%.
Countries such as the US, Argentina, France have the highest population of pet dogs and that will attract pet owners to opt for a policy, thus propelling the industry demand. Few of the insurance companies provide offers to include chronic and new recurring conditions at no additional cost, thus augmenting the segment growth. Europe, leads the global pet insurance market, while the rising trend of pet acceptance in the developing countries in Asia will further augment regional growth. The industry leaders majorly concentrate on various strategies including collaborations, acquisitions, mergers, and partnerships to create a global footprint and sustain market competition.