Logo
Climbing Vet Fees to allow a CAGR of 13% in Asia Pet Insurance market: Bonafide Research
Jun, 17
2021

154 view

Climbing Vet Fees to allow a CAGR of 13% in Asia Pet Insurance market: Bonafide Research

 

210619834-Asia-Pacific-Pet-Insurance-Market-Outlook-2026.png
In Asian countries, pet ownership is on the rise, but so are the medical expenses, especially when treating conditions that require long-term care. These can range from more than a hundred dollars for a routine annual check-up to USD 20,000 for major surgery. Depending on the plans, coverage could include third-party liability, surgical or non-surgical medical treatment, accidental injury or death, and even cremation or burial. Dogs and cats are not only the most preferred pets but are also known to improve the physical and mental health of humans. This allowed the regional market to grow a value of USD 0.32 Billion in 2015. Pet insurance has been getting increasing interest as pet owners become aware of its benefits. The growing animal populations, changing demographic structure, socioeconomic conditions, and the acceptance of the humanism concept in the region have been major market drivers in the region. The research report titled Asia Pacific Pet Insurance Market Outlook, 2026 by Bonafide Research categorizes the market in each of the following segments: based animal type, by insurance type, by the end-user based on countries & major companies.
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. Even though the region has a clear dominance of the accident & illness insurance type, the accident-only type is expected to grow with an anticipated CAGR of 20%. Pet owners, who are increasingly from the younger generation, are also becoming more comfortable with investing in pet welfare.
The growth of pet insurance has come alongside a broader expansion from other pet-related products and services, particularly at the high end. Getting a pet no longer appears to be just about companionship, calm, or pleasing the children. With the increasing number of private agencies, the segments of agency & brokers together rule the market with a share of more than 80%. Pet insurance is complicated at the best of times. So, the pet parents are trying to do away with the myriad of confusing policies and pick the ones which offer a single life policy. 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 insurance in mainland China is still in its nascent stages as options are few and limited in their scope and more than half of the pet parents have flagged it as their main issue regarding pet insurance. As vet care gets better, vet bills continue to increase. With bills getting higher, people are willing to take out cover to protect themselves from vet bills that can dig a hole in their pockets. Pet insurance is a relatively untapped market in the region which provides a substantial opportunity for market growth due to the increasing disposable income & willingness to spend more on pet care. The decision to insure a pet is as personal as deciding which pet to own and is subject to each person’s animal and financial rationale. Given the financial strain of the pandemic on wallets worldwide, however, few will want to leave themselves exposed to the unwelcome surprise of a huge vet bill.