Pet insurance is defined as an insurance that can be paid partly or totally for the veterinary treatment of the insured pet. Pet insurance services involve policy coverage for pet accidents, injuries and for pet illnesses. Also, various pet insurance providers are offering innovative insurance coverage policies for multiple pets to attract large customer base. Furthermore, with increasing healthcare cost for pets, the pet owners are readily adopting pet health insurance, thereby fostering the market growth. Standard diagnosis coding system has highly evolved for maintaining human medical records in developed nations such as Italy, England, United States and Canada. This simplifies the overall process of claiming reimbursement and availing the insurance benefits that are offered by federal governments of respected countries.
The report titled, “ Global Pet Insurance Market Outlook, 2030”, by Bonafide Research categorizes the market to forecast the revenues and analyze the trends in each of the following segments: based animal type (Cat, Dog & others), by insurance type (Accidental and Illness & Accident only endorsement) by the end-user (Agency, Broker, Bancassurance, Direct writing) based on region, countries & major companies. In the year 2019, the value of the pet insurance market was at USD 5.60 Billion, globally. The factors that are driving the market growth include an increasing number of pet adoption and rising awareness regarding pet insurance. Also, various pet insurance providers are offering innovative insurance coverage policies for multiple pets to attract a large customer base. Furthermore, with increasing healthcare costs for pets, pet owners are readily adopting pet health insurance, thereby fostering market growth. With the increasing pet adoption, the market is expected to grow with an anticipated CAGR of more than 9.8% in the forecasted period. Growing and increased demand for pet insurance market policies and rise in need for financial safety in case of surge in uncertainties boost the growth of the global pet insurance market. In addition, surge in number of veterinary centers positively impacts the growth of the market. Pet insurance is commonly selected by owners to reduce the burden of costs associated with veterinary services. Such schemes are offered by several public and private service providers for different companion animals such as dogs and cats, among others. Also, various innovative pet insurance coverage policies for multiple pets are offered by the services providers to attract a larger customer base. Thus, to reduce the rising burden of pet healthcare cost, the pet insurance industry is expected to register robust market growth over the forecast period.
The accident & illness policy segment dominates the market with a high share in 2019, aided by the comprehensive nature of the insurance policies. The customers prefer this policy over the accident only& endorsements segment, as it covers the majority of illnesses and accidents. This is undoubtedly the most favorable policy for young animals and thus driving the market. However, the market is expected to gain more popularity in the coming years and grow with a CAGR of 10%. Moreover, high veterinary treatment and diagnostic costs coupled with an increase in awareness regarding the insurance will further foster the market value. In the recent past, there has been a high adoption rate especially of dogs; due to this, the dog insurance covered an approx. 3/4th of the total market in 2020. Dogs get cancer almost at the same rate at which humans get, while cats get affected by cancer in fewer numbers. According to the Veterinary Cancer Society, globally, cancer is the leading cause of death in 47% of dogs over 10 years. The trend such as pet humanization is driving the pet insurance market. In this era, people are inclining towards the culture of nuclear families and hence it is resulting in the demand for pet adoption as people have started accepting pets as their family members even in the developing countries. There is an exponential surge in pet cat adoption which is to have a direct impact on cat pet insurance too, growing with a significant CAGR.
The direct writing segment dominates the global pet insurance market, commanding over major market share in 2024. Its leadership stems from offering convenience, customization, and cost-effectiveness directly to consumers, without intermediaries like agents or brokers. By streamlining processes and leveraging digital platforms, direct writing insurers provide easy-to-access, tailored policies, resonating with tech-savvy pet owners' preferences. Additionally, intense market competition drives insurers to innovate, fostering unique value propositions and competitive pricing strategies within this segment. Overall, direct writing's success reflects its ability to meet the evolving needs and expectations of pet owners worldwide. Region wise, the pet insurance market was dominated by Europe in 2020, and is expected to retain its position during the forecast period, owing to increase in adoption of pets in the UK, Italy, France, Russia, and Germany. In addition, many insurance companies across Europe are coming up with various policy coverage to encourage pet owners to adopt dogs. These companies render services with plans for illnesses, injuries, and various diseases. However, Asia-Pacific is expected to witness significant growth in the near future, owing to growing awareness of pet care and pet insurance during the lockdown. Moreover, care and concern for pets, especially dogs, marks the successful transition of Indians from pet owners 10 years ago, to pet parents now. With higher disposable incomes in developing countries like India, more people are now willing to spend on additional things like pets and their healthcare.
A Bonafide Research industry report provides in-depth market analysis, trends, competitive insights, and strategic recommendations to help businesses make informed decisions.
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