The pet insurance market is estimated to be valued at USD 9.53 billion in 2023 and is expected to reach USD 40 billion by 2033. The adoption of pet insurance is likely to advance at a CAGR of 16.8% during the forecast period.
The growing pet populace, acceptance of pet insurance in underdeveloped markets, rising vet care costs, and increasing humanization of pets, is driving the global pet insurance market.
Some new advances that have taken place in the market include technology that has changed how pet owners are taking care of their pets. The use of technology has made it convenient for pet owners to interact with and take care of their pets.
Technology has also changed how a pet owner can connect with pet care centers in the market through an online platform and there are many virtual programs that have helped the development and training of pet dogs. Such technological advancements have helped the pet insurance industry to grow and will continue to contribute to the growth of the industry at a significant rate in the near future.
Key reasons for growth are attributed to the steady uptake of the market during the first half of the forecast period, owed to the rising number of pet adoptions and increased awareness of pet insurance are two prime reasons that are pushing the pet insurance market forward.
An increase in income is another significant element influencing animal health spending. Lemonade, an AI-powered insurance start-up, introduced a new pet health insurance (Lemonade Pet) for kittens and puppies in 2021.
Despite these prospects, there are some likely challenges that stay ahead for the industry, which include some pet owners in developing countries that are unaware of pet insurance policies; this is because of less knowledge of pet care, low income, and low animal healthcare facilities.
Thus, the high cost of pet care products, lack of awareness of pet insurance, and high premium cost that can decrease the sales of pet insurance.
| Attribute | Details |
|---|---|
| Estimated Market Size 2023 | USD 9.53 billion |
| Projected Market Size 2033 | USD 40 billion |
| CAGR from 2023 to 2033 | 16.8% |
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Pet insurance is a policy purchased by a pet parent to cover the veterinarian’s care of the insured pet's injury or illness in part or in full. Some policies cover pet death as well as loss or theft. The pet insurance market expanded at a high CAGR of 15% from 2018 to 2022.
Numerous pets are covered under pet insurance. Pet insurance for dogs and pet insurance for cats are most in demand. Dogs, cats, horses, and other exotic animals are all covered under pet insurance policies. Pet owners mistakenly believe that pet insurance is similar to human health insurance; nevertheless, pet insurance is a type of property insurance. As a result, after the pet has gotten the care and the owner has submitted a claim to the insurance company, the pet insurance is reimbursed.
Dogs make excellent pets because they are amiable and loyal. The global pet insurance market is being fuelled by a rise in the number of dog rescue facilities and rehabilitation for sick dogs. Rising medical costs in veterinary treatment, as well as the use of pricey medical techniques and pharmaceuticals, are driving the demand for pet insurance. The global pet insurance market is anticipated to progress at a CAGR of 16.8% to reach USD 45 billion by 2033. The world is witnessing an increasing inclination towards dog insurance, cat insurance, horse insurance, and exotic pet insurance, to name a few.
Pawsitive Trends: Pet Care Spending and Dog Adoption Boost Pet Insurance Sales!
The rising number of pet adoptions and increased awareness of pet insurance are two prime reasons that are pushing the pet insurance market forward. The acceptance of animals as companions, such as dogs and cats, has risen significantly in recent years. Cats and dogs are the most popular pets and are known to benefit people's physical and mental well-being.
As a result, an increase in income is another significant element influencing animal health spending. Aside from per capita animal health spending, industries all around the world are investing more in the detection and treatment of veterinary diseases.
Due to a robust economy, greater consumer knowledge, high spending power, and quicker claims processing pet health insurance are getting more popular. The coverage for pet health insurance is expected to fund diagnostic procedures and radiology, and it will cover all accidents and illnesses under one policy.
Radiographs, ultrasound scans, CT scans, and MRIs are some of the most typical diagnostic tests supported by pet insurance. There are numerous players operating in the industry, and many of these players use pet insurance to promote multiple branded products.
There has also been an uptick in the number of new players. Thus, the involvement of key market players in providing novel products with the collaboration of pet insurance companies is likely to boost market growth.
Fumbling in the Dark: How a Lack of Pet Insurance Awareness Casts Shadows on Market Prosperity
Some pet owners in developing countries are unaware of pet insurance policies; this is because of less knowledge of pet care, low income, and low animal healthcare facilities. Thus, the high cost of pet care products, lack of awareness of pet insurance and high premium cost can decrease the sales of pet insurance.
Unleashing Success: How Leading Players Propel Pet Insurance Market Growth in Western Nations
In 2023, the Europe pet insurance market is expected to account for the largest market share. This is due to the expanding popularity of pet insurance, increased pet adoption, and the presence of key market players. Numerous insurance firms across Europe are developing policies to encourage pet lovers to adopt dogs. These businesses provide services such as illness, injury, and disease plans.
The pet insurance market in North America is being pushed by rising pet ownership, an increase in the domestic animal population, rising disposable income, and increased pet insurance knowledge. Due to the increased adoption of companion animals and pet insurance during shutdowns, the Asia Pacific industry is projected to develop significantly over the forecast period.
The first pet insurance coverage was sold in the United Kingdom in 1947, and since then, the country has seen significant growth in the pet insurance market. Well-established pet insurance companies are present in the United Kingdom, which focus on the best standard policies to increase their sales. Although some United Kingdom policies cover 100% of vet bills, sometimes this may differ according to the situation.
Pet insurance firms in the United Kingdom frequently offer consumers the option of paying an "extra," similar to how car insurance companies do. Excess fees might cost anything between £40 and £100.
Rising obesity rates among pets are expected to drive the United Kingdom pet insurance market. Pet Insurance companies are tying partnerships with pet care solution manufacturers to launch novel products into the market, which may be beneficial in increasing profit.
China is expected to dominate the Asia Pacific pet insurance market. An increase in the number of pets adopted and increased knowledge of pet insurance are two main factors driving market expansion in China.
Dogs have long been the most popular pets in the world, and they dominate Chinese pet food sales. As per the State Council of China 2020, over 73.55 million households possess a pet, with 46.1% having dogs and 30.7% having cats.
Millennials' rising choice of dogs as a companion is boosting pet insurance market growth. In addition, new firms are entering the market, such as China Continent Insurance and the Taikang Insurance Group, which ever cover pet diabetes care insurance.
Principal Consultant
The accident and illness policy type is expected to dominate the market and is likely to account for 47% of the global market share in 2023. High veterinarian care and diagnostic expenses, an increase in the domestic animal population, and increased knowledge of pet insurance are all contributing factors to this trend.
Pet insurance providers most typically offer accident and illness covers. These encompass a wide range of ailments, including acute and chronic illnesses, treatments, diagnostics, and more. The segment is predicted to expand the quickest in the future years since accident and illness insurance gives comprehensive insurance policies to pet owners.
The accident insurance policy type is expected to hold 35% of the global market share in 2023. Accidental damage coverage is sometimes included as a standard feature on premium plans, but it is frequently provided as an optional feature on more basic policies.
The embedded wellness policy type is presently likely to account for 20% of the global market share. Embedded wellness coverage includes immunizations, testing, and dental work. This sort of safeguarding is also known as "routine" or "preventative" care. Some accident and illness insurance may include wellness benefits, such as dental coverage.
The pet insurance market brims with fierce competition, as industry players vie to provide comprehensive coverage and innovative solutions for pet owners. Established insurers continuously refine policy offerings, integrating wellness programs and personalized plans. Agile startups disrupt the landscape, leveraging digital platforms to streamline processes and enhance user experiences.
Collaborations with veterinary networks amplify service accessibility, fostering customer loyalty. As awareness of pet well-being intensifies, market entrants focus on education, empowering pet owners to make informed choices. In this dynamic arena, competition sparks innovation, fueling a drive to reshape pet insurance into a vital component of responsible pet ownership.
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| Attribute | Details |
|---|---|
| Market Value in 2023 | USD 9.53 billion |
| Market Value in 2033 | USD 40 billion |
| Growth Rate | CAGR of 16.8% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Policy Type, End-User, Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East & Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Embrace Pet Insurance Agency LLC; Figo Pet Insurance LLC; Hartville Group; Nationwide; Pet Assure Corp; PetFirst; Ipet Insurance; Pets Best Insurance Services LLC; Royal & Sun Alliance (RSA); Trupanion |
| Customization & Pricing | Available upon Request |
Rising pet ownership rates, increasing awareness of pet health, and advancements in veterinary care are driving market expansion.
Pet insurance provides financial protection against unexpected veterinary costs, making it easier for owners to afford necessary medical care for their pets.
Trends include the availability of customizable coverage options, coverage for alternative therapies, and increased inclusion of wellness and routine care options.
Younger pets typically have lower premiums, while older pets and certain breeds may have higher premiums due to potential health risks.
Challenges include educating pet owners about the benefits of pet insurance, managing premium costs, and ensuring transparent coverage terms and conditions.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Policy Type 5.1. Accident 5.2. Accident & Illness 5.3. Embedded Wellness 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 6.1. Dogs 6.2. Cats 6.3. Horses 6.4. Exotic Pets 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Embrace Agency, LLC 17.2. Figo LLC 17.3. Hartville Group 17.4. Nationwide 17.5. Pet Assure Corp 17.6. PetFirst 17.7. Ipet Insurance 17.8. Pets Best Insurance Services, LLC 17.9. Royal & Sun Alliance (RSA) 17.10. Trupanion 18. Assumptions & Acronyms Used 19. Research Methodology
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