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Market Research Report

UK Pet Insurance: Market Dynamics and Opportunities 2018

Published by GlobalData Product code 364719
Published Content info 40 Pages
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UK Pet Insurance: Market Dynamics and Opportunities 2018
Published: June 19, 2018 Content info: 40 Pages
Description

This report analyzes the UK pet insurance market, looking at market size as well as changes in premiums, claims, medical costs, pet ownership, and opportunities. It discusses competitors in the market, how the market is likely to change due to rising costs and emerging technology, and provides future forecasts of market size up to 2022.

The UK pet insurance market experienced another year of growth in 2017, with total market gross written premiums (GWP) of £1,190m - an increase of 13.8% compared to 2016. The number of policies also grew considerably by 10.9% to reach 3.76 million. Yet there is still considerable potential for further growth as the majority of pets in the UK remain uninsured. Medical inflation remains one of the main driving forces behind the increase in GWP, with insurers passing on the cost to policyholders. The sustainability of premium increases endures as this market's greatest challenge and threat.

Scope

  • The dog insurance market represents the largest percentage of the total pet insurance market. With the UK population of cats and dogs estimated to be similar in size, product uptake appears to be lowest in the cat market, while premiums are higher in the dog market.
  • The increasing cost of pet healthcare is likely to drive growth within the market. Uninsured owners will feel the squeeze, resulting in an increase in uptake as owners begin to realize the benefits of insurance.
  • Insurers could look to other markets such as health insurance in order to develop solutions to combat the rising cost of claims. Technological developments such as wearable devices offer a major opportunity.

Reasons to buy

  • Keep up to date with the new trends and innovations in the market.
  • Benchmark yourself against competitors.
  • Learn about growth in all aspects of the market, what is driving it, and whether it looks set to continue.
Table of Contents
Product Code: FS0136IA

Table of Contents

Table of Contents

  • 1. EXECUTIVE SUMMARY 2
  • 1.1. Market summary 2
  • 1.2. Key findings 2
  • 1.3. Critical success factors 2
  • 2. THE PET INSURANCE MARKET 7
  • 2.1. The UK pet insurance market continued to grow in 2017 7
  • 2.1.1. UK pet insurance GWP reaches its highest point 7
  • 2.1.2. Another year of growth for the number of policies written 9
  • 2.2. The gross cost of claims continues on its upward trend 12
  • 2.2.1. Further advancements in treatments are fueling an increase in the cost of claims 12
  • 2.2.2. Veterinary salaries have had little impact on the cost of claims 14
  • 2.2.3. The average claim varies considerably depending on the type of pet 15
  • 2.3. Summary of the current market 16
  • 2.4. The UK pet population has increased in 2018 18
  • 2.4.1. The number of households with at least one pet has also risen 18
  • 2.4.2. Obesity within the UK pet population is a hidden problem 20
  • 3. COMPETITOR PROFILES 22
  • 3.1. There has been little change in terms of the dominant players 22
  • 3.1.1. Allianz and RSA remain the main players in the market 22
  • 3.1.2. Bought By Many brings a new approach to the market 23
  • 3.1.3. Animal Friends also aims to streamline the claims process 24
  • 3.2. The market leaders have the greatest marketing expenditure 24
  • 4. THE FUTURE MARKET 26
  • 4.1. The market is set to continue growing 26
  • 4.1.1. Total market GWP is forecast to reach £1.7bn in 2022 26
  • 4.1.2. Policy numbers will continue rising 27
  • 4.2. The claims landscape will become increasingly challenging 29
  • 4.2.1. Dog insurance claims are forecast to increase through to 2022 31
  • 4.2.2. Cat insurance 33
  • 4.2.3. The number of claims is expected to fall for other pet-related claims 34
  • 4.3. Other markets could hold the answer to reducing claims 36
  • 4.3.1. Health insurance products could be replicated by pet insurers to reduce claims 36
  • 4.4. Different avenues could be utilized to increase product uptake 37
  • 4.4.1. Pet insurance in the US is becoming an increasingly popular employee benefit 37
  • 4.4.2. Social media could allow insurers to target the uninsured and educate owners 37
  • 5. APPENDIX 38
  • 5.1. Abbreviations and acronyms 38
  • 5.2. HHI 38
  • 5.3. Forecasting methodology 39
  • 5.4. Bibliography 39

List of Tables

List of Tables

  • Table 1: UK pet insurance market GWP, 2013-17 8
  • Table 2: Indicators of competition within the pet insurance market 9
  • Table 3: Historical claims data, 2013-17 13
  • Table 4: Average claims cost by pet, 2013-17 16
  • Table 5: Breakdown of the pet insurance market by product, 2017 18
  • Table 6: More Than's pet insurance products 23
  • Table 7: The size of the pet insurance market (£m), 2018f-22f 27
  • Table 8: Number of policies by pet type, 2018f-22f 28
  • Table 9: The cost and number of claims within the total pet insurance market, 2018f-22f 30
  • Table 10: The cost and number of claims within the dog insurance market, 2018f-22f 32
  • Table 11: The cost and number of claims within the cat insurance market, 2018f-22f 34
  • Table 12: The cost and number of claims within the other pet insurance market, 2018f-22f 35

List of Figures

List of Figures

  • Figure 1: UK pet insurance GWP continues to grow 8
  • Figure 2: The total number of policies written grew again in 2017 10
  • Figure 3: There were over twice as many dog insurance policies written as cat policies in 2017 11
  • Figure 4: Dog insurance accounted for over three quarters of total market GWP in 2017 12
  • Figure 5: The gross cost of claims increased by £252m over the review period 13
  • Figure 6: In 2017 the number of claims increased at the fastest rate of the last five years 14
  • Figure 7: Cats have the lowest average claims cost 15
  • Figure 8: Dog insurance accounts for over 60% of all four statistics 17
  • Figure 9: There is considerable potential for growth throughout the pet market 19
  • Figure 10: Owners are open to using technology to monitor their pets 21
  • Figure 11: Animal Friends spends over twice as much as its nearest rival on marketing 25
  • Figure 12: The market will exceed £1.5bn in the next two years 26
  • Figure 13: The number of policies is forecast to increase by over 500,000 in the next five years 28
  • Figure 14: The total cost of claims is forecast to continue rising 30
  • Figure 15: The dog insurance claims landscape is set to become increasingly challenging 32
  • Figure 16: Cat insurers will be faced with an increasingly costly market 33
  • Figure 17: The average cost of "other" pet claims will rise despite a decreasing number of claims 35
  • Figure 18: Forecasting methodology 39
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