The Global Pet Insurance Market Anticipated to Generate a Revenue of $28,377.8 Million, Growing at a CAGR of 15.3% from 2021 to 2028Download Sample Reports Overview
The global pet insurance market size is estimated to be valued at $28,377.8 million by 2028, surging from $9,173.4 million in 2020, at a CAGR of 15.3%.
COVID-19 Impact on the Pet Insurance Market
The worldwide pet insurance market share is expected to be significantly impacted during the COVID-19 pandemic. Due to a reduction in client demand for insurance, several insurance brokerage firms in countries such as India and Japan have shuttered. Although the insurance industry has grown substantially in recent years, the COVID-19 pandemic might have caused a slight decline in 2021. This is due to government agencies imposing curfews in most countries, as well as an increase in insurance premiums.
However, with the increase in adoption of pets and also, with the awareness of the advantages of pet insurance, the market is expected to raise eventually
Global Pet Insurance Market Insight
With the increase in number of pets worldwide, the demand for high-quality veterinary pet wellness treatments kept increasing and so is the price of the treatments required due to accidents. As a result, pet insurance is gaining traction. The coverage includes blood tests, urinalysis, MRIs, x-rays, CT scans, lab work, and ultrasounds, as well as outpatient, specialty, and emergency care procedures, hospitalization, and surgery. Due to escalating medical costs, pet owners can now acquire an extended accident and illness package that covers more than just accidental road accidents and poisonings, but also a variety of ailments. Furthermore, because of the growing number of disorders linked with crossbreed dogs, the majority of pets are becoming family members for their owners, prompting them to spend more money on annual exams.
High costs associated with pet insurance policies, a lack of customer knowledge, strict standards, and government regulations are all key roadblocks to market expansion. In regions such as Asia-Pacific, the Middle East, and Africa, there is minimal knowledge of pet insurance, which is expected to slow the market's global growth rate.
The pet insurance market growth is due to increased awareness of the benefits of pet insurance plans, an increase in the pet ownership, rising companion animals, and the health benefits connected with pet ownership. Growing acceptance of sophisticated and expensive treatments, strong relationships between hospitals & insurance company executives, and rising concern for animal healthcare all contribute to the growth and potential of the pet insurance industry. Furthermore, the sector is supported by the increasing scale of veterinary institutions as well as largely untapped markets with low penetration rates.
Global Pet Insurance Market, Segmentation
The global pet insurance market is segmented based on animal type, coverage type, sales channel, and region.
The animal type segment of the market has been divided into dog insurance, cat insurance, and others (bird & exotic pet insurance, horse and others) sub-segments of which the dog sub-segment is projected to grow at a faster CAGR during the forecast period. It is predicted that the market shall generate a revenue of $13,796.7 million by 2028, growing from $4,384.2 million in 2020, with a CAGR of 15.5%.
The following factors contribute to the greater healthcare costs for dogs when compared to other pets: Companies that cover a wide range of dog breeds offer dog insurance coverage. Furthermore, the increased incidence of animal diseases is a crucial factor in pet insurance acceptability. The high cost of veterinary expenses will further increase demand for the product. Surgical veterinarian visits, for example, cost about USD 621, whereas regular veterinarian visits cost around USD 231. As a result, during the projected period, the aforementioned factors are expected to promote the growth of the dog category.
The coverage type segment is further classified into accidents, illness, and others. Among these, the accidents sub-segment is anticipated to hold the maximum share of the global market and register a revenue of $11,293.1 million during the forecast period.
These policies cover injuries, and accidents, as well as hospitalization, surgeries, and prescription drugs. Accident and illness insurance policies provide maximum reimbursement for a wide range of claims, increasing product demand and expanding the market.
The sales channel segment is further bifurcated into direct and indirect channel. The direct sales channel sub-segment is predicted to hold the maximum revenue in the global market and register a revenue of $17,413.5 million during the forecast period.
Traditional media advertising, telemarketing, and the use of the internet to solicit business are all examples of direct response marketing. Consumers may quickly assess the benefits and costs of policies by using the internet, particularly on sites dedicated to comparing insurance quotes. It is the most cost effective for the consumer because marketing insurance products through a direct response technique is substantially less expensive than through an agency network, and the competition is much broader.
The pet insurance market in North America is anticipated to produce the maximum revenue during the forecast time period and reach $9,296.6 million by 2028, rising from $2,939.2 million in 2020.
Because of increased consumer knowledge of several unique pet insurance policies and the presence of several key industry participants, the North America market is expected to grow significantly over the projected period.
Key Players in the Global Pet Insurance Market
Some of the leading global pet insurance market players are
- Embrace Pet Insurance Agency, LLC
- Figo Pet Insurance LLC.
- Hartville Group
- Nationwide Mutual Insurance Company
- Pet Assure Corp.
- Ipet Insurance
- Pets Best Insurance Services, LLC
- Anicom Holdings
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Pet Insurance Market:
- Bargaining Power of Suppliers: Pet insurance market comprises reasonable number of distributors and suppliers and hence, the distributors and supplier control are expected to be high, leading in higher bargaining power of dealers.
Hence, the bargaining power of the supplier is high.
- Bargaining Power of Buyers: Consumers will have moderate bargaining power, mainly due to the average number of players operating in the pet insurance market. Hence,
the bargaining power of the buyer is moderate.
- Threat of New Entrants: In the modern world, new entrants may face multiple new barriers, like legal and government policies.
Hence, the threat of the new entrants is moderate.
- Threat of Substitutes: There are few alternate products for pet insurance.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: Robust presence of key players such as Ipet Insurance, Pets Best Insurance Services, LLC, and Trupanion is creating massive rivalry in the local as well as international market. Also, high spending on business expansion and strategic tie-ups are some of the main factors rising competitive rivalry among the companies.
Thus, the competitive rivalry in the market is high.