Pet Insurance Market Analysis

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.