Pet Insurance Market to Grow by USD 30.07 Billion from 2024-2028, as Rising Pet Population Boosts Demand with AI Redefining the Market Landscape - Technavio

NEW YORK, Nov. 11, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The global pet insurance market size is estimated to grow by USD 30.07 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  34.51%  during the forecast period. Rising pet population is driving market growth, with a trend towards increasing adoption of business development strategies among pet insurance companies. However, several exclusions and limits in pet insurance coverage  poses a challenge.Key market players include Agria Pet Insurance Ltd., Allianz SE, Anicom Holdings Inc, Chubb Ltd., Dotsure Ltd., Embrace Pet Insurance Agency LLC, Healthy Paws Pet Insurance LLC, Hollard Insurance Group, Independence Pet Group, Intact Financial Corp., JAB Holding Co., Metlife Inc., Nationwide Mutual Insurance Co., NSM Insurance Group, Oneplan, Petofy, Petplan Iberica S.L., Porto Seguro Companhia de Seguros Gerais, The Oriental Insurance Company Ltd., The Progressive Corp., and Trupanion Inc..

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Market Driver

Pet population growth and increasing veterinary care costs have led in demand for pet insurance. With pets becoming more like family members, or "companion animals," pet owners seek financial protection against veterinary bills. Pet insurance plans cover accident & illness segments for dogs, cats, horses, and even exotic animals. Premium rates depend on animal type, age, and location. Developing economies are seeing an uptick in pet insurance schemes due to rising veterinary service costs. Technology plays a role with virtual programs and pet care centers offering telemedicine and online claims processing. Millennials, with disposable income and a strong affinity for pets, are driving the market. Pet health insurance covers medical expenses for veterinary treatment, including surgical vet visits, routine care, and diagnostic expenses. Pet care spending on products and services continues to rise, with pet adoption rates increasing for dogs, cats, and even kittens and puppies. Liability insurance for pet owners is also available for incidents involving property damage or injuries to others. Consumer knowledge and claims processing are important factors, with some insurers offering embedded wellness policies and coverage for routine care, immunizations, dental work, and preventative care. Obesity rates and zoonotic diseases add to the need for pet health insurance. 

The global pet insurance market is a competitive landscape with various small and large players. In 2023, the North American pet health insurance sector experienced significant growth, increasing by 21.9% and surpassing USD4 billion in total premium revenue for the first time. Companies employ various strategies, such as mergers and acquisitions, new policy launches, and regional expansion, to expand their market presence. Strategic partnerships and collaborations are also common in the market, with companies teaming up with veterinary clinics, pet wellness providers, and animal welfare organizations to offer additional benefits to policyholders. 

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 Market Challenges

• Pet population growth and rising veterinary care costs have led to an increased demand for pet insurance. With the humanization of pets, companion animals are now considered family members, requiring extensive veterinary care. Pet adoption rates are soaring, and veterinary medicine advances continue to drive up costs for pet owners. Pet insurance plans offer financial protection against veterinary bills, covering accident & illness segments for various animal types, including dogs, cats, horses, and exotic pets. Despite these benefits, challenges persist. Developing economies have limited pet insurance schemes, and veterinary service costs remain high. Zoonotic diseases and surgical vet visits add to medical expenses. Liability insurance is also essential for pet owners, especially those with large or aggressive animals. Technology plays a significant role in pet insurance, with virtual programs and embedded wellness policies offering preventative care, immunizations, dental work, and routine care. Consumer knowledge and claims processing are crucial factors, as are excess fees, obesity rates, and diagnostic expenses. Millennials, who prioritize pet care spending, are driving the growth of pet insurance policies, which cover medical costs, pharmaceutical expenses, and routine care. Pet care centers, dog rescue facilities, and pet care products are also impacted by the growing pet insurance market. Income levels and disposable income influence premium rates, while pet health insurance policies cater to the needs of kittens, puppies, and older animals. Ultimately, pet insurance offers peace of mind for pet owners, ensuring their beloved companions receive the best care possible.
• The global pet insurance market faces notable challenges due to various exclusions and limitations in coverage. These exclusions, such as the lack of coverage for routine wellness care and pre-existing conditions, can negatively impact policyholder satisfaction and hinder market expansion. Specifically, most policies do not include wellness services like vaccinations, flea and tick prevention, and regular check-ups. Furthermore, treatments for health issues that pets had prior to the insurance policy are typically excluded from coverage. These exclusions pose significant hurdles for the growth of the pet insurance market.

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Segment Overview 

This pet insurance market report extensively covers market segmentation by  

1. Type 
• 1.1 Dogs
• 1.2 Cats
• 1.3 Others
2. Application 
• 2.1 Accidents and illness
• 2.2 Accidents only
• 2.3 Others
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Dogs- The pet insurance market has experienced significant growth due to the increasing number of pet owners, particularly those with dogs. Diseases such as cancer, which affects nearly 47% of dogs over the age of 10, have driven the demand for pet insurance. Breeds like Bernese Mountain Dogs, Rottweilers, Bouvier des Flandres, Great Danes, German Shepherds, Labrador Retrievers, Boxers, Bichon Frises, and Golden Retrievers are more susceptible to cancer at a younger age. These factors are expected to boost the growth of the pet insurance market in the forecast period.

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Research Analysis

The pet insurance market is experiencing significant growth due to the increasing pet population, humanization of pets, and rising veterinary care costs. According to recent studies, there are over 500 million companion animals worldwide, and the number is projected to grow. Pet owners are seeking financial protection against unexpected veterinary bills, particularly in the accident & illness segment. The humanization of pets has led to a greater focus on their health and wellbeing, driving demand for comprehensive health insurance coverage. In developing economies, pet insurance schemes are gaining popularity as veterinary service costs continue to rise. Pet insurance plans cater to various animal types, including cats, dogs, horses, and exotic animals. Liability insurance is also available to cover damages caused by pets. Companies like Pumpkin, Embrace Pet Insurance, and Luko offer different plans tailored to specific animal types and owners' needs. Veterinary medicine advances and the rise of zoonotic diseases further highlight the importance of pet insurance.

Market Research Overview

The pet insurance market is experiencing significant growth due to the increasing pet population, humanization of pets, and rising veterinary care costs. With pets becoming valued companions and family members, pet owners seek financial protection against unexpected veterinary bills. Pet insurance plans cater to various animal types, including dogs, cats, horses, and exotic animals, offering coverage for accident & illness segments. Veterinary service costs, including surgical vet visits, routine vet visits, and diagnostic expenses, continue to rise, making insurance policies increasingly popular. Developing economies are also adopting pet insurance schemes as disposable income grows and consumer knowledge expands. Technology plays a crucial role in the industry, with pet owner access to virtual programs and pet care centers. Pet health insurance covers medical expenses for companion animals, including kittens, puppies, and senior pets, protecting against zoonotic diseases and veterinary diseases. Liability insurance is also available for pet owners, providing financial coverage for property damage or injuries caused by their pets. Premium rates vary based on animal type, age, and location, with income and consumer knowledge influencing the demand for pet insurance policies. Obesity rates and mental well-being are also factors considered in pet insurance plans, with some offering embedded wellness policies for preventative care, including immunizations, dental work, and routine care. Millennials are driving the growth of the pet insurance market, with a strong preference for pet care products and services. Overall, pet insurance offers essential financial protection for pet owners, ensuring their beloved companions receive the best veterinary care possible.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Dogs
• Cats
• Others
• Application
• Accidents And Illness
• Accidents Only
• Others
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio