The global pet insurance market size is anticipated to reach USD 32.7 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a lucrative CAGR of 16.7% from 2022 to 2030. The key factors driving the market growth include the rising number of pets across the globe, high veterinary care costs, and the need to reduce financial risk.
Pet Insurance Market Report Highlights
- The market was valued at USD 8.3 billion in 2021 and is expected to witness a CAGR of 16.7% during the forecast period
- The dogs insurance segment held the highest share of the market in 2021. The high popularity of dogs as pets and increase in the number of dog pet owners across the globe are the key drivers for this segment
- The direct sales segment dominated the market in 2021 while the others segment is estimated to grow the fastest over the forecast period
- Market players are utilizing various sales channels to distribute their insurance products and increase their market share. Bancassurance, for instance, held a notable share of the market in 2021. This is due to growing collaborations between pet insurance companies and banks. For instance, in April 2018, CIMB Bank in Singapore was the first to launch pet insurance for a wide variety of pets
- Based on coverage type, the accident and illness coverage segment accounted for the largest revenue share in 2021. The key drivers of the segment include high veterinary treatment and diagnostic cost, the rise of the companion animal population, and an increase in the awareness of pet insurance
- The accident only segment held a substantial share of the market in 2021. The key drivers of the segment include increasing health issues in animals and high treatment cost
- In 2021, Europe held the dominant share of the market. European countries were found to have a higher rate of pet insurance penetration along with the presence of key market players
- North America held the second-largest revenue share as of 2021. The key drivers of the market are a rise in the companion animal population and an increase in awareness related to pet insurance
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The COVID-19 pandemic has impacted all industries, including the market. Despite the slowdown, surge in pet ownership during the pandemic, expenditure on pets, and increasing pet humanization further propelled the growth of pet insurance policies. Furthermore, Concerns over rising veterinary care costs and fear of transmission of diseases like COVID-19 from pets to pet owners also increased the demand for reducing financial risks with a suitable pet insurance policy. As per the Pet Food Manufacturers Association, about 59% of households had pets in the U.K. in 2021. Dogs were the most popular at about 33%, followed by cats at 27%. Other pets include rabbits, indoor birds, guinea pigs, tortoises and turtles, horses, and others.
The COVID-19 pandemic has impacted all industries, including the market. The surge in pet ownership during the pandemic, expenditure on pets, and increasing pet humanization further supported the adoption of pet insurance policies during 2020 and 2021. Concerns over rising veterinary care costs and fear of transmission of COVID-19 from pets to pet owners also increased the demand for reducing financial risks with a suitable pet insurance policy. Although OIE has confirmed that no animals can spread this virus. However, in the initial months of the pandemic, there was speculation that it may spread through birds. Overall, the pandemic positively impacted the market with increased awareness and adoption of insurance policies by pet parents.
Rapidly growing consumer awareness, underpenetrated market, and product acceptance have benefited the market. According to Petplan, in the U.S., the average cost of an unexpected visit to the veterinarian was around USD 800-1,500 in 2018. This burden could be eased with an insurance plan in place. Moreover, untapped opportunities in developed and developing economies are anticipated to provide lucrative growth to this market in the coming years. Furthermore, advancements in pet insurance, such as vet direct pay by Trupanion, are revolutionizing medical insurance for cats and dogs by eliminating the reimbursement model. Similarly, pet insurance in Europe is growing rapidly due to strict pet insurance regulations in countries such as Sweden.
In addition, strategic initiatives by market players are further expected to boost the market growth. For instance, in April 2020, Zoetis entered the pet insurance space by launching Pumpkin Insurance Services Inc.- a pet insurance agency across the U.S. The company offers competitive pet health insurance plans and preventive care plans to pet parents. In December 2019, MetLife, Inc. on the other hand, acquired PetFirst Healthcare, LLC – a companion animal health insurance administrator. This acquisition leveraged the company’s position as a leader in group benefits distribution channels in the U.S. by enabling MetLife to expand its offerings. Such initiatives are estimated to boost the market growth in the coming years. Insurance providers are also focused on increasing penetration by targeting the customer base of the sales channels. For instance, in February 2018, Healthy Paws collaborated with Roover.com to increase its market penetration.
Pet Insurance Market Insights By Geographical Regions:
Europe dominated the pet insurance market and held the largest revenue share of over 43.0%. This is owing to the growing adoption of pet insurance, rising pet ownership, and the presence of key companies. North America market for pet insurance held the second-largest revenue share. However, only 1-2% of the pets in the U.S. are insured thus presenting lucrative growth opportunities. Asia Pacific region is estimated to grow the fastest at a rate of over 18%. This is owing to the emergent trend of pet adoption and the development of the economy in this region.
Industry Analysis By Major Companies:
The market for pet insurance is highly fragmented and competitive. Market players are involved in the implementation of various strategic initiatives, such as the launch of new policies, partnerships and collaborations, mergers and acquisitions, and regional expansion, to capture a larger share of the market. The entry of larger companies into the pet market is expected to further intensify the competition. Some of the prominent players in the pet insurance market include, Trupanion, Inc.; Deutsche Familienversicherung AG (DFV); Petplan (Allianz); Animal Friends Insurance Services Limited; Figo Pet Insurance, LLC; Direct Line; Nationwide Mutual Insurance Company; Embrace; Pet Insurance Agency, LLC; Anicom Insurance.
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Pet Insurance Market Segmentation
Grand View Research has segmented the global pet insurance market on the basis of coverage type, animal type, sales channel, and region:
Pet Insurance Coverage Type Outlook (Revenue, USD Million, 2017 – 2030)
- Accident & Illness
- Accident only
- Others
Pet Insurance Animal Type Outlook (Revenue, USD Million, 2017 – 2030)
- Dogs
- Cats
- Others
Pet Insurance Sales Channel Outlook (Revenue, USD Million, 2017 – 2030)
- Agency
- Broker
- Direct
- Bancassurance
- Others
Pet Insurance Regional Outlook (Revenue, USD Million, 2017 – 2030)
- North America
- U.S.; Canada
- Europe
- Germany; U.K.; France; Italy; Spain; Netherlands; Sweden; Norway
- Asia Pacific
- China; India; Japan; Australia; South Korea
- Latin America
- Brazil; Mexico; Argentina
- MEA
- South Africa; Saudi Arabia; Israel
List of Key Players of Pet Insurance Market
- Trupanion, Inc.
- Deutsche Familienversicherung AG (DFV)
- Petplan (Allianz)
- Animal Friends Insurance Services Limited
- Figo Pet Insurance, LLC
- Direct Line
- Nationwide Mutual Insurance Company
- Embrace Pet Insurance Agency, LLC
- Anicom Insurance
- ipet Insurance Co., Ltd.
- MetLife Services and Solutions, LLC
- Pumpkin Insurance Services Inc.
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About Grand View Research
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S. based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
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