(MENAFN- GlobeNewsWire - Nasdaq) The Global Pet Insurance market size was valued at USD 19.22 billion in 2024
Luton, Bedfordshire, United Kingdom, Nov. 05, 2024 (GLOBE NEWSWIRE) -- The pet insurance market is experiencing significant growth, driven by factors such as increasing pet populations, higher insurance adoption in developing regions, rising veterinary costs, major company initiatives, and the humanization of pets. According to NAPHIA's 2024 State of the industry report, there are now 6.25 million insured pets in North America, a 16.6% increase from 5.36 million in 2022.
The rising prevalence of diseases in pets and the growing trend of pet adoption are expected to further fuel market demand. Pet insurance helps mitigate costs associated with serious medical conditions, making it increasingly essential as veterinary services become more advanced and expensive. Innovations like online platforms and virtual care programs are also enhancing connections between pet owners and care providers, supporting the growth of the insurance sector.
Additionally, the COVID-19 pandemic led to a surge in pet ownership, with many first-time pet owners expressing interest in insurance. According to Pet plan, 47% of respondents acquired pets during the pandemic, driven by remote work and the desire for companionship. As veterinary care costs rise-spinal surgeries can exceed USD 13,000-pet insurance is becoming crucial. NAPHIA's report highlights a significant rise in claims, with the highest recorded claim exceeding USD 59,000 for a cat with a severe medical condition, demonstrating the vital role of insurance in managing these expenses.
Market Overview and Dynamics
The pet insurance sector is marked by significant innovation driven by advancements in veterinary medicine and a variety of insurance options tailored for different animal species. The rising trend of treating pets as family members, along with increased pet adoptions, has intensified the demand for insurance. As treatment options for pets expand, healthcare costs are rising, prompting owners to seek insurance to alleviate these expenses. Industry players are adapting by modifying existing plans and developing new ones to meet specific needs.
While pet insurance primarily covers dogs and cats, it also includes horses and exotic animals. There is a common misconception that pet insurance functions like human health insurance; however, it is classified as property insurance, meaning reimbursement occurs after the owner submits a claim following care.
The increase in dog rescue facilities and rehabilitation services for sick pets has further stimulated market growth. Rising veterinary costs, coupled with expensive medical procedures and medications, are driving demand for insurance. The global pet insurance market is projected to grow at a CAGR of 15.5%, reaching an estimated $50 billion by 2034.
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Regional Expansion and Market Strategies
Growth within the pet insurance market involves extending coverage to new geographical areas, driven by increased pet ownership, greater health awareness, and financial protection against unforeseen veterinary expenses. For instance, in August 2024, Trupanion expanded its operations in Europe by launching a pet medical insurance plan in Switzerland and Germany.
Market players are implementing various strategic initiatives, such as introducing new policies, forming partnerships, and pursuing mergers and acquisitions. Notably, JAB Holding Company acquired Pumpkin in April 2023 to strengthen its position in the rapidly expanding sector.
Competitive Landscape and Regulatory Framework
The entry of larger companies into the pet insurance market is expected to increase competition. For example, in December 2023, Embrace Pet Insurance insured approximately 600,000 pets nationwide. As the value of insurance becomes more recognized, new providers with unique business models are emerging.
Each region has its regulatory framework governing the insurance industry. In the U.S., the National Association of Insurance Commissioners (NAIC) oversees compliance and consumer protection. In 2023, the NAIC adopted the Pet Insurance Model Act, addressing key aspects such as pre-existing conditions and pet wellness programs.
Coverage Insights
The accident and illness segment dominated the market, capturing about 85% of the share in 2024, driven by rising veterinary costs, a growing pet population, and increased awareness of insurance value. This segment is expected to maintain robust growth as policies cover various conditions, from acute and chronic diseases to medications and diagnostic tests.
Conversely, liability insurance policies are anticipated to grow the fastest between 2025 and 2030, particularly in countries where pet owners are required to have such coverage. For instance, Luko provides dog liability insurance across several European nations.
Animal Insights
In 2024, dogs accounted for 60% of the market share due to high adoption rates. According to the American Pet Products Association, approximately 66% of U.S. households own at least one pet, with dogs comprising about 80% of the insured pet population.
The segment covering horses, small mammals, and birds is projected to grow at the highest CAGR, spurred by increased pet adoption and the expansion of insurance offerings. For example, Agria introduced a horse insurance plan covering veterinary fees up to €10,000, and Petco partnered with Nationwide Pet Insurance in January 2024 to launch a health insurance plan for various animals.
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Sales Channel Insights
In 2024, the direct sales channel segment held the largest market share at 34%, driven by major pet insurance providers adopting direct sales strategies. For instance, Deutsche Familienversicherung AG reported that direct sales accounted for 8% of their new business in 2023, reflecting a notable increase from the previous year, alongside a 21% boost in online sales.
Conversely, the segment encompassing animal care centers, veterinary clinics, and similar entities is projected to grow at the fastest rate during the forecast period. This growth is fueled by providers forming multi-faceted partnerships to enhance pet benefits and expand market reach. A significant development in this area occurred in February 2024 when Tractive, the leading pet wearables firm in the UK and Europe, launched Tractive Pet Cover. This insurance product, developed in collaboration with Ignite and Covéa, provides comprehensive lifetime coverage for dog and cat owners in the UK, offering up to £9,000 (approximately $11,500) in annual vet fees for accidents, illnesses, dental treatment, and third-party liability.
Regional Insights
North America
The North American pet insurance market secured the second-largest revenue share in 2024, driven by increasing adoption rates of pet insurance. According to NAPHIA's 2024 statistics, the gross written premium (GWP) for pet insurance in the U.S. and Canada surged from $1.56 billion in 2019 to $3.91 billion in 2023, reflecting an increase of over 25%.
The U.S. pet insurance market boasts a substantial customer base, with approximately 67% of households owning pets. This creates significant opportunities for pet insurance companies. A notable initiative by Spot Pet Insurance, in partnership with philanthropist MrBeast, aims to facilitate the adoption of 100 homeless pets and provide lifelong insurance coverage, potentially exceeding $1 million in premiums. Such initiatives highlight the industry's trend toward addressing community issues while promoting awareness and adoption of pet insurance.
Europe
In 2024, the European pet insurance market held a dominant revenue share of over 41%, driven by rising pet ownership, increasing adoption of pet insurance, and the presence of major companies. According to the European Pet Federation (FEDIAF), Europe housed 340 million pets in 2022, with cats and dogs being the most common. Key players like Petplan in the UK and DFV in Germany are continually implementing strategic initiatives to enhance their market share.
The Association of British Insurers (ABI) reported that pet insurance claims in 2022 exceeded £1 billion (approximately $1.28 billion), marking the highest level since 2007. This reflects rising costs associated with pet ownership and the growing number of insured pets. The pet insurance market in France is expected to grow rapidly due to increasing dog and cat ownership, alongside rising veterinary costs, which further underscores the need for insurance. Monthly premiums in France range from $8.61 to $10.79.
Asia Pacific
The pet insurance market in the Asia Pacific region is projected to grow at over 18% during the forecast period, driven by a rising trend of pet adoption and economic development. Increased awareness of veterinary health and improvements in healthcare infrastructure further contribute to this growth.
India's pet insurance market is rapidly expanding, positioning the country among the fastest-growing markets globally. The pet care industry in India is expected to reach $800 million by 2025, with around 600,000 pets adopted annually. The COVID-19 pandemic has spurred a surge in dog adoptions, prompting insurance companies to create tailored plans. Future Generali India Insurance Company Ltd sold nearly 25,000 pet insurance policies in the last quarter of 2022, showcasing significant growth potential.
Latin America
The Latin American pet insurance market is poised for growth, driven by increased veterinary healthcare penetration, rising per capita income, and heightened awareness of pet insurance benefits. Brazil leads the region with an estimated pet population of 160 million, according to reports, suggesting an average of nearly two pets per household. This rise in pet ownership is fueling the growth of the pet insurance industry, driven by trends of humanization and increasing ownership rates.
Middle East and Africa (MEA)
The MEA pet insurance market is expected to grow, supported by rising awareness of animal health in developing countries like Saudi Arabia and South Africa. South Africa has been involved in research initiatives assessing the impact of drugs on pets, and the establishment of the South African Veterinary Association has enhanced regulatory control in the veterinary sector.
Key players like Oneplan, Medipet, Dotsure, Pet Sure, and Hollard are actively launching new premium plans to increase their market presence. In September 2024, Tree Digital Insurance Agency launched a digital insurance platform designed for pet owners, further enhancing adoption.
Key Insights into Pet Insurance Companies
The pet insurance market is characterized by moderate fragmentation and competition, with substantial growth driven by significant investments in providers. JAB Holding Company has been acquiring various insurance and veterinary companies in North America and Europe, including prominent players like Figo, Pet Partners, AKC, ASPCA, Pets Plus Us, and Pumpkin Petcare, solidifying its dominance in the sector.
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Key Pet Insurance Companies:
The following are the leading companies in the pet insurance market. These companies collectively hold the largest market share and dictate industry trends.
Waggel Limited Feather Insurance Trupanion, Inc. Deutsche Familienversicherung AG (DFV) Getsafe GmbH Napo Limited Tesco Sainsbury Bank Plc Fressnapf Holding SE HDFC Ergo AliPay Nationwide Mutual Insurance Company Anicom Insurance Petplan (Allianz) Jab Holding Company Direct Line Lassie EQT Group MetLife Services and Solutions, LLC
Recent Developments in the Pet Insurance Market
August 2024: Apollo Insurance, a Canadian insurance broker, introduced a new insurance plan that covers medical expenses for various pets, including dogs and cats. June 2024: Trupanion and Boehringer Ingelheim announced a partnership aimed at enhancing access to veterinary care. This collaboration will provide Trupanion clients with curated veterinary information and tips. April 2024: HDFC ERGO Insurance launched Paws n Claws, a customizable pet insurance plan for dogs that covers a range of veterinary costs, including diagnostic tests, treatments, and medications. January 2024: Five Sigma, a leader in cloud-based claims management solutions, formed a strategic alliance with Odie Pet Insurance. This partnership is focused on making pet insurance more accessible and affordable while revolutionizing the claims process. November 2023: Fetch partnered with Best Friends Animal Society, a national organization aiming to end the euthanasia of shelter pets by 2025. Fetch will make substantial donations to support the Society's efforts to rehome shelter animals.
Market Segments:
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