Pet Insurance Market Size (2023 - 2030)

The global pet insurance market size was worth USD 3.89 billion in 2022 and to reach USD 6.65 billion by 2030 growing with a CAGR of 12.92% during the foreseen period. 

Industry Overview

Pet insurance is to cover the accidental veterinary care costs, including veterinary services like accidental injuries, prescribed veterinary medicines, and surgical procedures. 
Pets are the most lovesome and attractive family members. They are owned for many reasons like for security purposes. Pet owners are responsible to take care of the pet's health. They need proper time to time health check-ups, even pets have vaccinations and they need to be vaccinated. Pet insurance is considered to decrease the cost burden of owners. Accident and illness is the most common policy insurance that covers the entire veterinary process of pets. 

Market Drivers

Factors like the growing number of personal insurance providers as insurance providers are inclined to supply insurance policies with maximum coverage plans, propel the pet insurance market growth. Pet insurance coverage has recently been seen supplementing the insurance market. Some of the insurance companies like Bajaj Allianz General Insurance, New India Insurance, United India Insurance, etc. are offering insurance to pets. The Veterinary expenses expenditure rose by 7% from 15.95 USD billion to USD 17.07 billion in 2017. 

The growing total expenditure on pets with rising disposable personal income stimulates the pet insurance market. As per American Pet Products, 2018, the total expenses in the U.S pet market have risen by 4.1% between 2016-2017. Since its beginning, pet insurance is experiencing the highest growth. The growing significance of pet health and high veterinary treatment cost propel the market growth. As per the North American Pet Health Insurance Association (NAPHIA) 2017, around 89.7 million dogs in the U.S. Rabies, heartworm, Kennel cough are some of the diseases found in dogs. 

Market Restrains

Veterinary insurance is surging as veterinary care is often expensive and many pet owners are not in a stage to afford it. 

Segment Analysis

The global pet insurance market has been segmented and sub-segmented based on the product, animal type, and sales channel. 

Pet Insurance Market - By Product

• Accident and Illness
• Accident only

Based on the product, accident, and illness segment held the largest share in the pet insurance market. Factors like growing knowledge related to pet insurance, an increase of the companion animal population, and high veterinary treatment and diagnostic price are likely to propel the product segment growth during the analysis period. The ability of the policy to offer reimbursement policies for the maximum number of accidents and illnesses accelerates the pet insurance market. 

The accident segment holds a considerable share of the pet insurance market growth. Growing health concerns of animals and rising treatment costs. Animals with already existing conditions can be covered with an accident-only policy. For instance, Healthy Paws combined with Roover.com to increase its market perforation. 

Pet Insurance Market - By Animal Type

• Dogs
• Cats
• Others

The dog's pet insurance segment leads the animal type in 2018. An increasing number of dog owners, rising significance of pet health, and high veterinary treatment costs rise the market growth during the foreseen period. The dog is the most common pet owned by the population worldwide. The healthcare cost of dogs is unaffordable to cover compared to other pets. Companies are offering insurance policies providing cover for different dog breeds. 

The cat segment is estimated to experience substantial growth over the upcoming years. Cat insurance is available in two forms: Life time and non-lifetime. Cats have most common disease which is Feline Immunodeficiency Virus (FIV). 

Pet Insurance Market - By Sales Channel

• Agency
• Broker
• Bancassurance
• Direct Writing

The agency segment is to dominate the sales channel in the pet insurance market in 2018. A huge customer base drives the segment growth. The rising demand for these services and growth in the companion animal population is likely to flourish the agency segment growth in the pet insurance market. 

Bancassurance is anticipated to showcase profitable growth in the pet insurance market. Large, and developed bank networks propel the segment growth. In April 2018, CIMB Bank in Singapore is the first bank to launch pet insurance for different pets. 

Regional Analysis

Europe is dominating the pet insurance market globally in 2018. In Europe, pet insurance is quickly growing due to stringent pet insurance regulations. In the UK, 23.0% of the pets and 30.0% of the pets in Sweden were covered by pet insurance by 2017, according to the Department of Clinical Veterinary Science and Pet Food Institute. The large companies existence and 

North America is the second-largest region in the pet insurance market in terms of revenue in 2018. More than 3.2 million shelter animals are adopted every year, as per the American Society for Prevention of Cruelty to Animals. Out of 3.2 million animals, 1.5 million animals are dogs. In North America, the adoption of pets is increasing fueling the market. As per the Casualty Actuarial Society, the continuous increase in pet insurance demands actuary, in 2018, in the U.S. This registers novel opportunities for actuarial entrepreneurs. In Canada, cats are being more adopted than dogs. 

However, Asia-Pacific is considered to be the quickest-growing region globally and exhibits productive growth. The increasing trend of pet adoption and developing economy in the region. The growing awareness regarding veterinary health and surge in companion animal population boom the pet insurance market growth. 
The rising per capita income fuels the market growth. The per capita income of Asia-Pacific was USD 7.35 thousand in 2022 and is expected to reach USD 10.18 thousand by 2030, as per the International Monetary Fund, 2022. China, Japan, and India are spearheading pet insurance are driving the market further.  

The pet insurance market in Latin America and The Middle East and Africa showcase respectable growth during the timeline period. The hiking treatment cost and veterinarian fees for animals, and increasing disposable income among the developing countries mount the pet insurance market growth. Favorable government initiatives, knowledge about pet care is spurring, and high untapped markets with fewer penetration rates are the factors sweeping market growth.

Top key players operating in the Pet Insurance Market

1. Petplan Limited

2. Trupanion, Inc

3. Nationwide Mutual Insurance Company

4. Hartville Group, Inc

5. Pethealth, Inc

6. PetFirst Healthcare LLC

7. Royal & Sun Alliance Insurance Company of Canada, Inc

8. Embrace Pet Insurance Agency, LLC.

Notable Happenings in the Pet Insurance Market market

• On October 29, 2022, Trupanion and Aflac made a definitive agreement to sell pet insurance worksites in the U.S. 
• On December 05, 2022, MetLife Inc. acquired PetFirst Healthcare LLC Inc. The acquisition helps the pet owners to get quick access to pet insurance and ease the financial budget of ill or injured pets.

COVID-19 Impact on the global Pet Insurance Market

The global pet insurance market has been significantly affected by the novel coronavirus (COVID-19) pandemic. Veterinary doctors have shut their clinics temporarily due to lockdowns. Many of them have thought, like visiting the pet clinics even the pets may be affected by the virus. Insurance plays a major role in pets as well as human life. The COVID-19 pandemic has created a spear in the adoption of pets globally. The same acceleration has been seen in pet insurance globally.