PUBLISHER: Bonafide Research & Marketing Pvt. Ltd. | PRODUCT CODE: 1123880
PUBLISHER: Bonafide Research & Marketing Pvt. Ltd. | PRODUCT CODE: 1123880
Pet insurance is a policy of specialized property and casualty insurance that pet owners purchase to cover unforeseen costs such as veterinarian care, surgical procedures, and injury. Accidents and prescription pet medications are two of the most common causes of pet death. Owners of pets can benefit from pet insurance in a variety of ways. Some insurance cover congenital, hereditary, and chronic illnesses such as cancer, as well as the costs associated with them. CAT scanning, ultrasound imaging, and veterinarian examination costs are all methods of identifying the same. Prescription medication, MRI testing, and non-routine dental therapy are all examples of veterinarian. Some pets, on the other hand require regular tooth cleaning, infection, and flea prevention which is often not covered by insurance policies.
The report titled, " Middle East & Africa Pet Insurance Market Outlook, 2027", by Bonafide Research categorizes the market to forecast the revenues and analyze the trends in each of the following segments: based animal type (Cat, Dog & others), by insurance type (Accidental and Illness & Accident only endorsement) by end-user (Agency, Broker, Bancassurance, Direct writing) based on countries & major companies. The region can be better termed as the lowest contributor to the global market. The Middle East & Africa Pet Insurance market was valued at merely USD 0.14 Billion in 2016. The increasing rate of urbanization in developing countries like South Africa, increasing disposable income of people, rising knowledge about pet care, are expected to allow the market to grow at a rate of over 14% in the forecasted period. Pet ownership is on the rise in the region due to the growing number of single professionals, empty-nesters, couples who delay having children, and families who need additional guard dogs. Most of the dog insurance demand is met by expatriates as dogs are regarded 'bad omen' in Islam.
In Middle-East & Africa, more cats are kept as pets than dogs, as Islam considers dogs to be unclean. There are some regional cat breeds, like the Egyptian Mau that are kept as pets. However, the dog insurance type leads the market with a market share of nearly 75% in the year 2020. The share for dog insurance in the country is more due to higher exposure to illness as the high temperature of the region is unsuitable for them. In South Africa amongst breeds, the Jack Russel Terrier is the most popular enrolled dog, the Domestic Short-Hair the most popular cat, and the African Grey parrot the most popular exotic pet. In the coming years, the market growth rate of the other animal insurance segment is expected to be more than 23%.
Accident and Illness policy dominates the market with high concerns over the health of pets, especially dogs in the region. The segment holds nearly the whole market share in the year 2020. The vet fees in the developed countries of the region such as the UAE are sky-rocketing. This has created a need for pet insurance, especially for accident-only insurance in the urbanized sections. The segment is expected to grow with an exceptional CAGR through the forecasted period. In addition, in a still-struggling economy, with the rising cost of owning and caring for pets, pet insurance is becoming increasingly popular. Rising literacy rates and the growing preference of people to adopt a pet and delay having children is a supporting factor to the growth of the industry in the Middle East & Africa.
There are no major players in the UAE and Saudi owing to the lack of motivation among the pet owners and insufficient knowledge regarding the benefits of pet insurance. The agency segment in the region accounted for the highest market share, while the direct writing segment is to portray the highest CAGR in the coming period. The increasing popularity of the pet humanization concept is increasing the demand for pet grooming and care products. Owners, especially millennials, are willing to spend more on their animals to ensure a healthy and secure life. Private players tend to supply insurance policies with maximum coverage plans and minimum premium offers. Leading insurance agencies permit various novel pet schemes to retain consumers, which will further foster market growth in the region.
The covid 19 pandemic affected the market in a mixed manner which for the most part was negative. The only positive aspect brought forth by the pandemic in the market was the increase in adoption rate with people forced to sit home during the lockdown period. Other than this the economic uncertainty in the already economically struggling areas of the region the consumer looked to cut down on unnecessary expenses and considered pet insurance to be one.
NationWide Mutual Insurance Company, PetFirst Pet insurance, RSA Group, Oriental Insurance, Tokio Marine & Nichido Fire Insurance Co.Ltd.
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The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.
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