Now in its fourth edition, Packaged Facts' Pet Insurance in North America is
the most comprehensive examination of the U.S. and Canadian pet insurance
markets available and a must-have for any company interested in this dynamic
industry. Although sales growth slowed due to the recession, revenues
(measured as gross written premiums) remained in the double digits in 2009
while delivering a 2005-2009 compound annual growth rate of 21%. Packaged
Facts expects the North American market for pet insurance to continue to chart
strong annual increases over the next five years, with the high level of
competitive activity helping to offset the slow economic recovery and ongoing
challenge of communicating the value of pet health insurance to
budget-watching consumers.
As of 2010, industry pioneer Veterinary Pet Insurance (VPI) continues to lead
the market. However, both the U.S. and the Canadian pet insurance markets have
experienced significant market share shifts during the past five years as more
than a half dozen new companies have come onto the field. Each of these
companies brings with it unique strengths, in some cases including potent
co-marketing affiliations with powerful brands (e.g., PetPartners and the AKC,
PurinaCare with its own famous name), and in other cases including important
retail channel thrusts (e.g., PetFirst with Kroger and Petfinder.com, and
Trupanion with Petco). The industry is also seeing more investment backing and
large insurance companies coming into the market as underwriters, including
Aon with Healthy Paws, Aetna with Pets Best, and Berkshire Hathaway with
PurinaCare.
Based on primary research including interviews with every leading pet
insurance provider in North America, this latest edition of Packaged Facts'
groundbreaking 2003 report offers a road map for competing in this market both
now and in the years ahead. All of the top players are profiled in depth,
including VPI, Pethealth, Hartville (ASPCA), Western Financial/Petsecure,
PetFirst, PetPartners (AKC), Vetinsurance/Trupanion, Pets Best, Embrace, Fetch
(Petplan USA) and PurinaCare. Statistics provided include historical and
projected market revenues, number of policies in force, and company shares
(both U.S. and Canadian), along with profiles of pet owners and pet insurance
purchasers, based on data from sources including Experian Simmons, The
American Pet Products Association, and Packaged Facts own consumer surveys.
Table of Contents
Table of Contents
Chapter 1: Executive Summary
Introduction
Scope of Report
Report Methodology
Market Analysis
Consumer Analysis
Market Size and Composition
North American Market Growth Continues
Looking Ahead
Figure 1-1: North American Pet Insurance Market Revenues: United States,
Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars)
Number of Policies in Force
Veterinary Chanel Feels Recessionary Pinch But Retains Upward Curve
Competitive Overview
Top North American Marketers
Figure 1-2: Estimated Share of North American Pet Insurance Market by
Company, 2005 vs. 2009 (percent)
Market Share Shifts
Competitive Trends
Consumer Trends
Pet Ownership Overview
Figure 1-3: Household Ownership Rates for Selected Pet-Owning
Classifications, 2010 (percent of U.S. households)
Pet Owners and Insurance
Chapter 2: Market Trends
Introduction
Market Definition
Equine Insurance Excluded
Range of Coverage
Typical Restrictions
Gross Written Premiums and Conversion Rates
Market Size and Composition
North American Market Growth Continues
Table 2-1: North American Pet Insurance Market Revenues: United States,
Canada, and North America, 2005-2009 (in millions of U.S. dollars)
Figure 2-1: Share of North American Pet Insurance Market: United States
vs. Canada, 2002-2009 (percent)
Number of Policies in Force
Figure 2-2: North American Pet Insurance Market: Number of Pet Insurance
Policies in Force, 2005-2009
Share of Policies by Animal Type
Figure 2-3: Share of U.S. Pet Insurance Market Revenues by Animal Type,
2009 (percent)
Market Outlook
Recession Takes a Toll
A Stuttering Recovery
Pet Owners Not Immune to Economic Downturn
Figure 2-4: Level of Agreement with Statement "I Am Spending Less on Pet
Products These Days Because of the Economy," 2010 (percent of U.S. pet
owners)
Table 2-2: Economic Outlook of U.S. Pet Owners: Now vs. Last 12 Months
(percent)
Figure 2-5: Level of Agreement with Statement "I Anticipate Spending
More on Pet Products Over the Next 12 Months," 2010 (percent of U.S. pet
owners)
Table 2-3: Economic Outlook of U.S. Pet Owners: Now vs. Next 12 Months
(percent)
Veterinary Chanel Feels Recessionary Pinch But Retains Upward Curve
Figure 2-6: Percentage of Dogs and Cats Given Medication and/or Drugs:
2000-2008 (percent)
Table 2-4: Veterinarian Visits, Expenses and Services Received, 2008
(number, percent and dollars)
Table 2-5: Average U.S. Household Expenditures on Veterinary Services,
1998-2008 (in dollars)
Veterinarians Lining Up Behind Pet Insurance
Figure 2-7: Percentage of Veterinarians Who Actively Recommend Pet
Insurance, 1997-2009
Figure 2-8: Percentage of Veterinarians Who Would Like to See Wider Use
of Pet insurance by Year of Veterinary School Graduation
Consumer Awareness/Trade Support/Media Coverage Up
North American Pet Health Insurance Month
Improving PR
North American Pet Health Insurance Association (NAPHIA)
Schwarzenegger Axes California Pet Insurance Bill
Human/Animal Bond a Potent Force
Figure 2-9: "Consider My Pet(s) Part of the Family": By Percent of Pet,
Dog/Cat, Dog and Cat Owners, February 2009 (percent)
Table 2-6: Mean Number of Veterinary Visits: By Human/Animal Bond Among
Dog and Cat Households, 2006
Table 2-7: Mean Veterinary Expenditures: By Human/Animal Bond Among Dog
and Cat Households, 2006 (in dollars)
Growing Populations of Dogs and Cats
Table 2-8: Number of Dogs and Cats in the United States: 2000, 2002,
2004, 2006 and 2008 (number in millions and percent)
Figure 2-10: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2010
(percent of U.S. households)
Internet Popularity Among Pet Owners a Plus
Table 2-9: Level of Pet Owner Agreement with Statement: "I Use the
Internet to Help Find and Choose Pet Products," February 2010 (percent)
Table 2-10: Level of Pet Owner Agreement with Statement: "I Buy Pet
Products Online," February 2010 (percent)
Table 2-11: Selected Internet-Related Psychographics: Adults Overall vs.
Dog or Cat Owners, 2010 (percent and index)
Impact of Aging Pet Population
Figure 2-11: Percentage of Dogs and Cats Age 6 and Over: 1996 vs. 2006
(percent)
Impact of Pet Overweight, Obesity
Table 2-12: Percentage and Number of Overweight and Obese Dogs and Cats,
2009
Increased Competition/Channel Expansion
Shift Away from Credit Usage Bodes Well
Table 2-13: Credit Card Ownership and Usage: By Frequency, 2005-2010
(percent)
Looking Ahead
Figure 2-12: Projected North American Pet Insurance Market Revenues:
United States, Canada, and North America, 2009 vs. 2014 (in millions of U.S.
dollars)
Chapter 3: Competitive Overview
Market Share Trends
Top North American Marketers
Figure 3-1: Estimated Share of North American Pet Insurance Market: By
Company, 2005-2009 (percent)
Figure 3-2: Estimated Share of U.S. Pet Insurance Market: 10 Companies,
2009 (percent)
Figure 3-3: Estimated Share of U.S. Pet Insurance Market: By Company,
2005-2009 (percent)
Figure 3-4: Estimated Share of Canadian Pet Insurance Market: By
Company, 2005-2009 (percent)
Market Share Shifts
Table 3-1: North American Marketers of Pet Insurance, October 2010
Competitive Trends
A New Ball Game
Figure 3-5: Cumulative Share of North American Pet Insurance Market
Revenues: Over 5% Share Companies vs. Under 5% Share Companies, 2005-2009
Differentiation to the Fore
The Underwriting Advantage
Company Snapshot: PurinaCare Insurance Services, Inc.
Table 3-2: PurinaCare Monthly Ultimate Premiums Estimate, June
2008-November 2009 (in dollars)
Enter Healthy Paws - and Aon
Next Up: PetSafe
More International Cross-Over
Internet More Important Than Ever
The Company Benefits Thrust
Competition from Alternative Payment Options
CareCredit
Pet Assure
Banfield
Other
Looking Ahead
Chapter 4: Competitor Profiles
Competitor Profile: Embrace Pet Insurance
Background
Company Positioning
Recessionary Adjustments
Competitor Profile: Hartville Group, Inc
Company Overview
Types of Plans
Management Shakeup Yields Growth
Company Voluntarily Delists Stock
ASPCA Venture Going Strong
Illustration 4-1: ASPCA Pet Insurance Ad in Veterinary Practice News
(June 2010)
Hartville Premiums Up in 2009
Figure 4-1: Hartville Group Gross Written Pet Insurance Premiums,
2001-2009 (in millions of dollars)
Number of Active Policies at Approximately 120,000
Figure 4-2: Hartville Group Number of Active Pet Insurance Policies,
2001-2009
Ongoing Strong Consumer Focus
Increased Focus on Veterinary, Company Benefits Channels
Competitor Profile: PetFirst Healthcare LLC
Company Overview
Company Strategy
Focus on Simplicity
More Choices
Ramping Up Online
The Kroger Connection
The Petfinder.com Connection
The Home Again Connection
Expansion in Company Benefits Arena
Competitor Profile: Pethealth, Inc.
Company Overview
Revenue Growth
Table 4-1: Pethealth Revenues, 2001-2009 (in millions of Canadian
dollars)
Pet Insurance Operations
Brokers
Underwriting
U.K. Market Entry
EVE Online Claims Processing
North American Pet Insurance Performance
Table 4-2: Pethealth Pet Insurance North American Gross Written
Premiums, 2001-2009 (in millions of U.S. dollars)
Table 4-3: Number of Pethealth Pet Insurance North American Policies in
Force, 2001-2009
United States v. Canada
Table 4-4: Share of Pethealth Pet Insurance North American Gross Written
Premiums: U.S. vs. Canada, 2005-2009 (percent)
Pet Insurance Programs and Marketing
Non-Insurance Operations
PetPoint Shelter Management Software
24PetWatch Pet Registry Services
Petango.com
Competitor Profile: PetPartners, Inc.
Company Background
AKC and CFA Policy Types
AKC and CFA Program Marketing
Illustration 4-2: AKC Pet Insurance Ad in AKC Family Dog (April/May 2010)
Company Launches PetPartners "Gemstone Brand," Expands into Company
Benefits Arena
New Partner Programs
Company Profile: Petplan USA (Fetch, Inc.)
Company Overview
The U.K. Connection
The HSUS Connection
Media Focus
Illustration 4-3: Promotional Banner for Fetch Magazine
Illustration 4-5: Pets Best Ad in Animal Wellness (December/January 2010)
Channel Focus
Affinity Relationships
Illustration 4-6: ChaseHealthAdvance and Pets Best Joint Marketing Ad
(May 2009)
Competitor Profile: Veterinary Pet Insurance Co.
Company Overview
Company Realigns with Focus on Consumer Advocacy
Commitment to Benefit Schedule
Belief in Indemnity Insurance
Adherence to Regulation
A New Product Roster
Emphasizing Wellness Care
2009 Revenues of $184 Million
Table 4-5: Veterinary Pet Insurance Gross Written Premium 1998-2009 (in
millions of dollars)
Advertising Spending and Themes
"That' s a Good Human" Campaign Launched
Illustration 4-7: VPI Print Ad: "That' s A Good Human" Campaign
Public Relations Mix "Fun Facts" with Pet Health Tips
Web-Based Marketing and Support
The Iams Connection
Veterinary Channel Remains VPI Focus
Industry Leader in Voluntary Benefits Arena
Competitor Profile: Vetinsurance International (Trupanion)
Company Background
Trade Approach
Trupanion Plus Petco
Consumer Approach
Illustration 4-8: Trupanion Trade Ad (Veterinary Practice News, June
2010)
Policy Changes
Trupanion Online
Cause Marketing
Competitor Profile: Western Financial Insurance Company
Company Background
Western Financial In
Petplan Out
Pet Insurance Brands and Channels
Most Recommended Brand in Veterinary Channel
Adoptsecure Offered in Shelter Channel
Premiums, Policies Continue Upward Trend
Table 4-6: Western Financial Pet Insurance Gross Written Premiums,
2003-2009 (in millions of U.S. dollars)
Table 4-7: Western Financial Pet Insurance Number of Active Policies,
2005-2009
Company Launches Value-Priced Option: Petset
Hbc Brand Launched in 2008
PurinaCare Canada
PC Financial Brand Targets Loblaw Supermarket Crowd
CAA Brand Reserved for Auto Club Members
Strategic Alliances
Public Relations and Cause Marketing
Chapter 5: Consumer Trends
Pet Ownership Overview
Methodology and Data Sources
52% of Households Keep Pets
Figure 5-1: Household Ownership Rates for Selected Pet-Owning
Classifications, 2010 (percent of U.S. households)
Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning
Classifications, 2005, 2007, and 2010 (percent of U.S. households)
Overall Demographics for Dog Owners
Regional Skews by Number of Dogs Owned
Overall Demographics for Cat Owners
Household Composition Skews by Number of Cats Owned
Table 5-2: Demographics for Dog Ownership, 2010 (percent, number of
households, and index)
Table 5-3: Selected Demographics for Keeping One Pet Dog, 2010 (percent,
number of households, and index)
Table 5-4: Selected Demographics for Keeping Two or More Pet Dogs, 2010
(percent, number of households, and index)
Table 5-5: Demographics for Cat Ownership, 2010 (percent, number of
households, and index)
Table 5-6: Selected Demographics for Keeping One Pet Cat, 2010 (percent,
number of households, and index)
Table 5-7: Selected Demographics for Keeping Two or More Pet Cats, 2010
(percent, number of households, and index)
Pet Owners and Insurance
APPA Consumer Surveys Show Rise in Pet Insurance Ownership Rates
5% of Dog Owners With a HH Income of $60K+ Carry Pet Insurance
Figure 5-2: Prime Demographics for Purchasing of Dog Insurance, 2008
(percent of U.S. dog owners)
Cat Insurance Usage Rates Show Opposite Pattern by HH Income
Figure 5-3: Pet Insurance Ownership Patterns by Household Income: Dog
Owners vs. Cat Owners, 2008 (percent of U.S. dog or cat owners)
Vets Are Most Important Source for Pet Insurance Awareness
Figure 5-4: Sources from Which Dog or Cat Owners Become Familiar with
Pet Insurance, 2010 (percent)
37% of Dog/Cat Owners Are Not Familiar with Pet Insurance Policies
Figure 5-5: Levels of Familiarity with Pet Policies Among Dog or Cat
Owners Who Do Not Carry Insurance, 2010 (percent)
Top Reasons for Not Having Pet Insurance Policies
Figure 5-6: Reasons for Not Carrying Pet Insurance: Dog or Cat Owners,
2010 (percent)
Table 5-8: Demographic Characteristics for Purchasing of Dog Insurance,
2008 (percent of U.S. dog owners)
Table 5-9: Top Demographic Characteristics Favoring Purchasing of Cat
Insurance, 2008 (percent of U.S. adults)
Appendix: Company Addresses
Pet Insurance in North America, 4th Edition published by Packaged Facts in November 1, 2010. This report consists of 196 Pages and the price starts from US $ 3300.
The contents of this page may be different from the latest version. Please contact us for details.
Press Release
Pet Insurance Market in North American Continues to See Growth
November 10th, 2010
Global Information, Inc. would like to present a new market research report, "Pet Insurance in North America, 4th Edition" by Packaged Facts.
According to the new report, "sales of pet insurance in the United States total $303 million in 2009, up 16% from $262 million in 2008, when sales rose 27%." In light of these projected growth rates, "despite the currently high level of market dynamism, our projection represents significant moderation over the 25%-35% rates we predicted in previous editions due to the lingering effects of the recessions," states David Lummis, Packaged Facts senior pet market analyst. "That said, the level of competitive activity is at an all-time high, and with so many irons in the first we are not ruling out a higher growth rate. However, such growth will depend on the ability of marketers to move from what appears to be a stage of market cannibalization to one of more uniform growth via an expanded overall consumer base."
Gross written premiums (GWPs), also known as "annualized premiums" or "earned premiums" are the primary tool for calculating market size in this report. GWPs are defined as the revenues expected to be received over the life of the contract when a non-life insurance company closes a contract to provide insurance against loss".
Currently, industry pioneer Veterinary Pet Insurance (VPI) continues to lead the market. The pet insurance industry as a whole is experiencing more support in terms of investment backing and more large insurance companies are entering the market as underwriters (i.e. Aetna with Pets Best, Berkshire Hathaway with PurinaCare, and Aon with Healthy Paws).
