Pet insurance is an insurance policy that an owner purchases in order to reduce the collective costs of the extortionate veterinary bills. The coverage provided by the insurers are somewhat similar to human insurance policies, and hence they cover the veterinary treatments of the insured person’s ill or injured pet. Some pet insurances also pay out in case the pet is stolen or when the pet dies. Owners particularly adopt the pet insurance due to the rising cost of veterinary medicines and medical techniques.
Forecast Analysis of the Global Pet Insurance Market
Growing adoption of pets among people across the globe is expected to drive the growth of the market during the forecast period. In addition, the rising costs of veterinary treatments is further expected to bolster the growth of the pet insurance market. Moreover, innovative customized policies provided by the insurance providers like multi-pet insurance and others are expected to create tremendous opportunities for the growth of the market during the forecast period. However, lack of awareness about pet insurance policies among people is expected to hinder the growth of the market during the forecast period.
According to the report, the global pet insurance market is expected to garner a revenue of $28,377.8 million by 2028, growing rapidly at a CAGR of 15.3% during the forecast period 2021-2028. The major players of the market include Nationwide Mutual Insurance Company, Pet Assure Corp., PetFirst, Ipet Insurance, Anicom Holdings, Pets Best Insurance Services, LLC, Trupanion, Embrace Pet Insurance Agency, LLC, Figo Pet Insurance LLC, Hartville Group, and many more.
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global pet insurance market to grow exponentially.
For instance, in December 2019, MetLife, one of the largest global providers of insurance, annuities, and employee benefit programs, acquired PetFirst Healthcare, a fast-growing pet health insurance administrator based in Jeffersonville, Indiana, in order to help more pet parents get access to pet insurance and alleviate the potential financial burden of a sick or injured pet.
In March 2021, Agria Pet Insurance, one of the world’s leading pet insurers, collaborated with PetsApp, an innovative company providing an app-based client communication and digital payments solution for veterinary clinics, in order to it easier for veterinary clinics to better serve the needs of pet owners and their patients by augmenting Agria’s existing services.
In December 2021, Chewy, a leading online destination for pet parents and partners, collaborated with Trupanion, Inc., an industry leader in medical insurance for pets, in order to enable Chewy to offer customers both preventative pet care wellness plans and comprehensive pet insurance plans for accidents, illnesses and chronic conditions.
Most Profitable Region
The North America pet insurance market is expected to be most lucrative and generate a revenue of $9,296.6 million during the forecast period. Growing awareness about unique pet insurance policies among people in this region is expected to bolster the growth of the market. In addition, prevalence of illustrious players of the market in this region is further expected to stimulate the growth of the regional pet insurance market during the forecast period.
COVID-19 Impact on the Market
The outbreak of COVID-19 has had a devastating impact on the growth of the global pet insurance market, owing to the prevalence of lockdowns in various countries across the globe. Lockdowns led to the closure of almost all diagnostics and veterinary care centres across the globe so as to limit the spread of the virus during the pandemic. However, insurance firms are making significant efforts to optimize and adjust policy coverages. Thus, coronavirus pandemic has had a negative impact on the growth of the pet insurance market.