Global Pet Insurance Market Size, Share, Growth Analysis, By Policy Coverage Type, By Animal Type, By Service Type, By Sales Chanel - Industry Forecast 2023-2030

Global Pet Insurance Market size was valued at USD 8.03 billion in 2021 and is poised to grow from USD 9.4 billion in 2022 to USD 33.1 billion by 2030, growing at a CAGR of 17.04% in the forecast period (2023-2030).

The pet insurance market is being driven by several key factors, including an increase in pet ownership, the adoption of pet insurance in underserved regions, rising veterinary care costs, initiatives by prominent companies, and the humanization of pets. Trupanion, for instance, reported that around 800,000 pets were covered by their insurance in 2020 across important markets in the United States, Canada, and Australia. The COVID-19 pandemic presented challenges for pet owners, veterinarians, veterinary clinics, and animal health businesses. However, the industry quickly implemented protective measures to ensure continued access to veterinary care and other services. This crisis made pet owners more aware of the benefits of having pet insurance coverage to mitigate financial risks. In the UK, pet ownership saw an increase during the recession, with cats and dogs being the most common pets. A survey by Petplan revealed that around 26% of pet owners in the UK acquired a pet during the recession, and approximately 47% of respondents became pet owners for the first time.

The main reasons for pet ownership during this time were attributed to working from home conditions, the desire for companionship, and spending more time at home due to lockdowns and movement restrictions. Companies like Animal Friend Insurance addressed the changing landscape by offering coverage for remote consultations through partnerships with services like Joii Pet Care. Furthermore, the growing need for insurance to mitigate out-of-pocket costs for serious medical issues such as accidental injuries and cancer is expected to drive market growth in the near future. Additionally, the demand for pet insurance is influenced by the increasing need for veterinary hospitals.

Segments covered in this report:

The Global pet insurance market is segmented on the basis of policy coverage type, animal type, service type, sales channel and region. By policy coverage type, the market is segmented into accident & illness, accident only and others. By animal type, market is segmented into dogs, cats, and other animals. By service type, market is segmented into public insurance provider and private insurance provider. By sales channel, market is segmented into agency, broker, direct, bancassurance, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Driver

The pet insurance market is projected to experience growth in the forecast period due to various factors. These include the rising number of companion animals, the increasing recognition of the health benefits associated with pet ownership, the growing demand for innovative pet insurance solutions, and the escalating costs of veterinary care. Additionally, the market is driven by the low penetration rate of pet insurance, indicating untapped potential for growth during the forecast period.

Restraint

Insufficient awareness and understanding of pet insurance policies and services in developing nations could impede the expansion of the market. These regions often have lower per capita disposable income compared to industrialized nations, which affects the adoption of pet insurance. Additionally, there is a lack of knowledge about various infectious and zoonotic diseases, further hindering the growth of the market. Addressing these knowledge gaps and increasing awareness about the benefits and importance of pet insurance in developing nations is crucial for the market to expand.

Market Trends

The global pet insurance market is experiencing growth driven by the need for financial security in uncertain times and the increasing demand for pet insurance policies. The expansion of veterinary clinics also contributes to the market's expansion. However, challenges such as a lack of awareness about pet insurance coverage and high premium rates are impeding the market's growth. Nevertheless, during the forecast period, the integration of technology into existing product and service offerings, as well as government initiatives promoting pet insurance schemes, are expected to create opportunities for market expansion.