PET INSURANCE MARKET ANALYSIS

Market Challenges And Opportunities

Global Pet Insurance Market Drivers:

Growing pet population to augment market growth

One of the key factors expected to augment the growth of the global pet insurance market over the forecast period is the growing pet population across the world. For instance, billions of households worldwide are unified by a common theme, pet ownership. According to the healthforanimals.org, more than half (50%) of the global population is estimated to have a pet at home. Worldwide, dogs are present in around one in three homes, and almost a quarter of pet owners have a cat. Families in the U.S., EU, and China alone have over half a billion dogs and cats. In the United States, 70% of households owned a pet as of 2021 compared to 68% in 2016.

Rise in adoption of pet insurance to underpin market growth

Another factor which is driving the growth of the global pet insurance market is the rise in adoption of pet insurance around the world. For instance, with the rise in pet adoption and rise in awareness among people about veterinary health, the adoption or demand for pet insurance is also increasing worldwide. According to the North American Pet Health Insurance Association (NAPHIA), about 3.9 million pets in the U.S. were insured by the end of 2021, a 28% increase since 2020. Total pet industry expenditures in the U.S. reached US$ 123.6 billion, 19% from US$ 103.6 billion in 2020. This in turn is driving the growth of the market.

Global Pet Insurance Market Opportunities:

Rising awareness regarding pet insurance is expected to provide significant growth opportunities for players in the global pet insurance market. For instance, pet insurance helps cover unexpected and expensive veterinary bills for various animals. Pet insurance also proves to be a boon for pets that may need to make use of additional healthcare facilities as they age. In January 2023, in a bid to boost awareness, PetSure announced the launch of a campaign for its innovative claims solution GapOnly, which enables pet owners with insurance policies to claim on the spot and only pay the gap fee. The campaign explores the different scenarios and mishaps that pet owners face.

Rise in prevalence of several diseases among pets, especially dogs, is expected to offer significant growth opportunities for players in the pet insurance market. For instance, cancer strikes dogs at a rate that is nearly identical to that of humans. According to the Veterinary Cancer Society, in June 2020, cancer was the leading cause of death in 47% of dogs globally, especially those over the age of 10. Even though cancer is a disease found in ageing animals, some families or breeds of dogs, have a higher incidence or tendency for developing cancer at a young age. This in turn is expected to increase the adoption of pet insurance across the world.

Global Pet Insurance Market Restraints:

Poor reimbursement to hinder growth of the market

One of the key factors expected to hamper growth of the global pet insurance market is the lack of standardized pet health codes for reimbursement. For instance, the efforts to standardize pet health codes for reimbursement are currently lacking in the pet insurance industry. Lack of a standardized pet health code remains a stumbling block globally while pet insurance has grown over the years. Centers for Medicare & Medicaid Services (CMS) and CPT codes exist for procedures, but some carriers may not recognize or reimburse for the codes for billing in pet insurance.

Low adoption in emerging countries to hamper market growth

Another factor which is hampering growth of the global pet insurance market is the low adoption of pets in emerging countries. For instance, the developing countries usually have a low rate of pet adoption due to less per capita income, lack of awareness regarding pet adoption, and high cost of veterinary healthcare, which makes it less affordable for the population to adopt pets in the middle and low-income countries. The cost of veterinary services is also high the middle and low-income countries. This in turn is restraining the growth of the market.