Pet Insurance Market

Pet Insurance Market Size

Pet Insurance Market was valued at USD 9.6 billion in 2023 and is expected to grow at a CAGR of 6.4% over the analysis period. The rise in companion animal population is anticipated to increase the demand for veterinary healthcare facilities. Veterinary services are capital intensive and require veterinary doctors, specially designed diagnostic equipment and skilled technicians.

For instance, according to a report published by Forbes Advisor, in 2022, Americans spent $136.8 billion on their pets, up nearly 11% from 2021 ($123.6 billion). Essential dog expenses cost an average of $1,533 annually. Therefore, the rising veterinary cost will attract more pet owners to opt for policies for various diseases treatment such as companion animal ear infection treatment, accidents and illnesses that will spur the market growth of pet insurance.

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.

Pet Insurance Market Trends

The number of pet animals adopted widely for companionship has increased significantly in the past few years. Pets are largely adopted by people for companionship and there has been a shift in trend from pet owners to pet parents which indicates that pets are considered as a part of family these days.

• Furthermore, increasing social acceptance of pets has stimulated pet adoption. Pet adoption is also perceived to assist in low blood pressure, depression, and loneliness, thus increasing the number of pet adoptions and boosting the market growth during the forecast timeframe.
  
• Moreover, the companies are innovating multiple solution for their pet owners to enhance their policy process. For instance, in July 2020, Alipay launched its new pet insurance with its open-sourced noseprint recognition technology. The platform can create an exclusive electronic file for each pet based on its noseprint and use the information to verify a pet's identity before completing a claim. Thus, the pet insurance industry has grown from past few years.
  

Pet insurance Market Analysis

Based on the policy coverage, the global market is classified into accident only, accident & illness, and other policy coverage. The accident & illness segment dominated the market with revenue of USD 9.3 billion in 2023.

• High growth is attributed to the comprehensive nature of these insurance policies. Also, as most both illnesses and accidents are covered in these insurance policies, the customers tend to prefer accident & illness policy coverage for their pets.
  
• Therefore, the accident & illness policy is the most favorable policy for young animals, thereby driving the market growth. Furthermore, high veterinary treatment and companion animal diagnostics cost has resulted in increase in awareness regarding accident & illness insurance, thereby augmenting the market growth.
  

Based on the animal, the global pet insurance market is classified into cat, dog, and other animals. The dog segment is expected to exhibit 6.2% CAGR between 2024 - 2032.

• High growth rate is owing to increasing adoption of dogs across the globe. Insurance providers offer dog health insurance plans for injuries, illnesses, and wellness care. Countries such as U.S., Argentina, France have the highest population of pet dogs and that will attract pet owners to opt for various policy coverage, thus propelling market growth.
  
• Furthermore, few of the insurance companies provide offers to include chronic and new recurring conditions at no additional cost, thus augmenting the segmental growth.
  

Based on the insurance provider, the global pet insurance industry is classified into public and private. The private provider segment is expected to reach USD 16.2 billion by end of 2032.

• Adoption of various strategies such as digital marketing and competitive pricing of the monthly premiums are the major factors leading to market growth.
  
• Also, development of innovative insurance schemes coupled with various efforts to increase the customer awareness and satisfaction will further boost segmental growth in the future. Thus, private providers offer maximum coverage with minimum premiums that will further drive the market growth. 
  

In 2023, North America secured a substantial market share of 32.2% in the global pet insurance market and is expected to dominate throughout the forecast period.

• The North America market growth is attributed to increasing consumer awareness regarding various novel pet insurance policies coupled with presence of several major industry players.
  
• Also, increasing trend of pet adoption in the U.S. will further augment the regional market growth. For instance, according to the American Society for Prevention of Cruelty to Animals (ASPCA) report, approximately 3.2 million shelter animals are adopted every year in U.S. Among those shelter animals, 1.6 million are dogs and 1.6 million are cats. Thus, growing adoption of pets in various states of America will boost the market growth.
  

• Moreover, the rise in veterinary cost in U.S. due to factors such as advanced medical treatments, diagnostic procedures, and specialized care is the major factor that contribute to the growth of the market. Pet insurance provides pet owners with financial protection against unexpected and expensive veterinary bills, making it an attractive option. Thus, the aforementioned factor contributed to North America's dominance in the market.
  
  

Germany to experience the highest growth rate in the market, outstripping other countries in Europe in the assessment period.

• The increase in awareness about the benefits of pet insurance among pet owners, veterinarians, and pet-related organizations contributes to market growth. Educational initiatives, marketing campaigns, and endorsements from veterinary professional’s help promote the importance of pet insurance for ensuring optimal pet health. Also, rising concerns among the population pertaining to their pet’s health is another major growth driving factor.
  
• Further, the number of pet owners in the countries continues to rise, driven by factors such as changing demographics, urbanization, and lifestyle preferences. As pet ownership grows, there is a corresponding increase in demand for pet insurance to mitigate the financial burden of veterinary care that will boost the growth of the market.
  

The India pet insurance market is expected to grow with a significant CAGR during the forecast period.

• The changing attitude toward pets in India, as several people considering them as integral members of their families. This changing perception has led to increased spending on pet care products and services, including healthcare and insurance.
  
• Moreover, the pet care industry in India is expanding rapidly, with the emergence of pet hospitals, clinics, grooming centers, and boarding facilities. The availability of these services enhances the overall quality of pet care and increases awareness about the importance of pet insurance among pet owners.
  

Pet Insurance Market Share

The competitive landscape of the pet insurance industry is characterized by the presence of established market players operating in the pet insurance. These industry players majorly concentrate on various strategies including collaborations, acquisitions, mergers, and partnerships to create a global footprint and sustain market competition.

Pet Insurance Market Companies

Prominent players operating in the market are as mentioned below:

• Anicom Holding Inc
• Embrace Pet Insurance Agency LLC
• Figo Pet Insurance LLC
• Hartville Group
• Health for Pet
• Hollard
• Nationwide
• Petfirst Healthcare LLC
• Pet Health
• Petplan
• ProtectaPet
• Royal & Sun Alliance
• The Oriental Insurance Company Ltd
• Trupanion
  

Pet Insurance Industry News:

• In April 2024, Chubb announced a definitive agreement to acquire Healthy Paws, a U.S.-based managing general agent (MGA) specializing in pet insurance. The transaction positions Chubb to expand in a niche market with substantial growth potential. Thus, this acquisition is expected to help extend the reach and amplify the impact of esteemed pet insurance brand in a vastly underpenetrated market.
  
• In August 2020, Bajaj Allianz General Insurance, India’s leading private general insurer announced the launch of its pet insurance product called “Bajaj Allianz Pet Dog Insurance Policy” which is India’s only retail comprehensive pet insurance offering for pet dogs. This policy provides comprehensive coverage to domesticated pet dogs of indigenous origin, pedigree, nonpedigree, cross-bred and exotic breeds over the lifetime of the dogs from age 3 months to 10 years. This strategy enabled company to veterinary service market in India.
  

The pet insurance market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments:

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Market, By Policy Coverage

• Accident only
• Accident & illness
• Other policy coverages

Market, By Animal

• Cat
• Dog
• Other animals

Market, By Insurance Provider

• Public
• Private

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Denmark
  • Norway
  • Sweden
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudia Arabia
  • UAE
  • Rest of Middle East and Africa