by The global pet insurance market is anticipated to witness significant growth in the upcoming years owing to the increasing pet adoption among individuals globally. Pet insurance offers comprehensive protection coverage for veterinary care costs and additional benefits like annual health checkups, vaccinations, dental cleaning, etc. The insurance covers accident injuries, prescribed medications, diagnostic tests, hospitalization, and various surgeries. The rising humanization of pets has further increased pet spending over the years. Pet owners regard their pets as companions or family members and prioritizing their health and wellness. The close bonding between pets and humans has also boosted pet ownership. Surging millennial pet parents preferring dogs and cats as their furry dependents will additionally propel the market demand.
The global pet insurance Market is estimated to be valued at US$ 11.05 billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing Pet Ownership- As mentioned in the heading, rising pet adoption has fueled the need for pet insurance. More individuals are keeping pets at home for companionship during lockdowns and working remotely. This leads to higher pet healthcare expenditure covered by insurance plans.
Surging Humanization of Pets- The emotional attachment between owners and pets has grown significantly over the years. Pet parents consider pets as family members leading to willingness to spend on their health, wellness, and risk coverage through insurance. This driver further accelerates the market growth.
Segment Analysis
The global pet insurance market is segmented into accident and illness insurance, accident only insurance, and other insurance types. The accident and illness insurance segment dominates the market and accounts for over 60% share. This is because accident and illness insurance offers comprehensive coverage for vet visits, surgeries, prescription medications, and more. It shields pet owners from unforeseen vet bills in case the pet falls ill or meets with an accident.
PEST Analysis
Political: Regulations regarding pet health and safety are becoming stringent. This is increasing demand for pet insurance that helps cover vet costs arising from regulatory compliance.
Economic: Rising pet adoption and increasing spending on pet care is driving the market growth. However, high insurance premiums can restrain the market to some extent.
Social: People are increasingly considering pets as family members. This has boosted social acceptance for pet insurance that provides financial protection.
Technological: Insurtech firms are developing advanced data analytics tools to better price policies, reduce claim processing time and enhance customer experience in the pet insurance industry.
Key Takeaways
Global Pet Insurance Market Size is expected to witness high growth over the forecast period supported by rising pet ownership and increasing expenditures on pet health. The global pet insurance Market is estimated to be valued at US$ 11.05 billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Regionally, North America dominates currently due to high pet ownership and awareness about pet wellness insurance products in the region. The North American region currently dominates the global pet insurance market due to high pet adoption rates and rising pet care expenditures in countries like the US and Canada. Increased awareness about pet wellness products is further stimulating demand. The Asia Pacific region is expected to witness fastest growth supported by growing pet ownership in China and India along with rising incomes.
Some of the key players operating in the pet insurance market are Medibank Private Limited, Petplan, Oneplan Insurance, Dotsure.co.za (Hollard), Healthy Paws Pet Insurance LLC, Figo Pet Insurance LLC, Embrace Pet Insurance Agency LLC, Anicom Holdings Inc., Oriental Insurance Company Ltd., MetLife Services and Solutions LLC (PetFirst Healthcare LLC), and Crum & Forster Pet Insurance Group (Hartville Pet Insurance Group) among others.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
