Pet Insurance Market by Type, Insurance Type, and Geography - Forecast and Analysis - 2023-2027

Pet Insurance Market Forecast 2023-2027

The Pet Insurance Market size is estimated to grow by USD 19.85 billion between 2022 and 2027 accelerating at a CAGR of 31.41% during the forecast period. The global pet population is increasing as more households adopt pets, with approximately two-thirds of American households owning at least one pet, primarily dogs. The rise in pet ownership is driven by the belief that pets enhance human lives. Countries like China have seen a significant shift, where pet ownership was once illegal but is now on the rise. China's pet expenditure increased by about 11% from 2017 to 2019. Brazil and India are also experiencing substantial growth in their pet populations, with India's pet dog population expected to reach over 30 million by 2023. This growing pet population has led to an expanding market, as three out of four pet owners opt to protect their pets. As a result, the global market is expected to grow in the coming years, catering to the increasing number of pets worldwide.

What will be the Pet Insurance Market Size During the Forecast Period?

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Market Segmentation by Type, Geography

This industry report extensively covers market segmentation by Type (dogs, cats, and others) and Geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.

By Type

Based upon Type, Dogs segment shows significant growth during the forecast period. Over the last few years, it has been observed that there has been a substantial rise in the adoption of animals, particularly dogs, as they are among the most preferred companions of human beings. Hence, with the increasing adoption rate, there is a corresponding rise in the number of insurance for dogs. The dogs segment was valued at USD 1.06 billion in 2017 and continued to grow until 2021. The occurrence of various diseases among dogs and the high prices of treatments are the key contributors to the adoption. Furthermore, based on a report published by the Association of British Insurers in 2020, 4.8 million pets in the UK are insured, of which 2.8 million were dogs. This fact signifies a great adoption due to the huge burden of diseases among dogs. Thus, all the above-mentioned factors are expected to propel the growth of the segment during the forecast period.

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Cat insurance covers up to 90% of veterinary bills for illnesses, injuries, emergencies, and genetic conditions. It also includes alternative care for conditions like disc problems, spine issues, ligament injuries, and hip dysplasia. Both kittens and older cats can face health issues, such as infections and congenital conditions. Insurance provides financial protection for costly treatments. The rising demand for cat insurance drives the growth of the global market.

Insurance Type

Accident and illness insurance includes coverage for accidents and any type of illnesses or diseases, such as cancer. This insurance plan holds the largest share of the global market. The plan sometimes also offers wellness coverage as a complementary or may be included with the coverage. Chronic conditions Cancer treatment Breed-specific conditions Dental illness ER and specialist care Prescription drugs Diagnostic testing and imaging Surgery, hospitalization, nursing care Accident and illness pet insurance coverage is a cost-effective way of avoiding the high bills of treatment.

The accidents only type that covers the treatment when the pet accidentally gets hit by a car, suffers another physical injury or swallows a foreign object. The share of the accident only coverage segment of the global pet insurance market is compared to the accident and illness segment. Accident only insurance coverage is a frequently used option by the pet parents of older pets that have aged out of accident and illness coverage.

Geographical Analysis

North America is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The adoption of pets is the highest in North America, with the US, Canada, and Mexico being the largest contributors to the growth of the market. North America has the highest number of pets as well as pet insurance services globally. Factors such as the high affordability limit and the availability of experienced service providers who offer security and safety to pets drive the market in the region to a great extent.

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The growing awareness among pet owners about the availability of various types of these services, such as accidents only and accidents and illness, is one of the major factors driving the market in the region. Also, the rising adoption of such services by pet owners due to the convenience associated with these services contributes to the growth of the market in North America. The penetration of different ones mainly depends on the spending capability and the average disposable income of the people in the region. As North America is a highly mature region, the pet insurance market has a huge prevalence in the region. Hence, the region is a global market leader for pet insurance.

Market Dynamics and Customer Landscape

The market is witnessing significant growth, driven by the increasing adoption of pets and the rising awareness of the importance of financial protection for pet owners. With the humanization of pets and the escalating veterinary care costs, pet owners are turning to pet insurance plans to safeguard against unexpected medical expenses. Strategic initiatives by leading companies like Luko and Embrace Pet Insurance are further fueling market expansion. As the adoption rate of pets continues to rise, particularly in developing economies, the demand for pet insurance schemes is expected to surge. This trend is underscored by the growing prevalence of zoonotic diseases and the need for comprehensive health insurance coverage for companion animals like cats and dogs, as well as horses and exotic animals. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

The market has experienced significant growth over the past decade, fueled by the rising trend of pet ownership and increased spending on pet care services. Approximately half of the US population owned a cat or dog in 2022, driven by the growing humanization of pets and the status associated with owning them. This trend extends globally, with rising pet ownership observed even in developing economies like India and Mexico, supported by increasing incomes. Pet owners are increasingly investing in pet insurance plans to provide financial protection against veterinary bills and medical expenses. As pets offer numerous physical and mental health benefits, including reduced stress and increased exercise, the demand for pet insurance is expected to continue rising, driven by the desire to ensure the well-being of companion animals.

Significant Market Trends

The market trend in pet care services is increasingly focused on offering high-end, premium services. As more households have two incomes, consumers are willing to spend extra money on pet insurance, which they consider a luxury item because they treat their pets as family members. The trend of humanizing pets is also becoming more prevalent, especially among individuals who are childless or single parents. Consequently, many pet owners are seeking out niche services from the providers. They typically cover the expenses associated with pet illnesses, accidents, and other forms of pet care. Thus, the growing preference for premium pet care services is expected to drive the growth of the global pet insurance market in the coming years.

Major Market Challenges

Low adoption in developing countries is the major challenge impeding market growth. Regarding the security and health of pets, several nations have stringent laws. For instance, countries such as the US and the UK have strict regulations, which owners have to comply with, the failure of which can lead to serious punishments. But countries, especially in APAC, such as India, Srilanka, China, Indonesia, and the Philippines, do not have such strict regulations guiding the safety of pets. This is due to the lack of organizations and authorities to regulate these issues.

The safety of endangered species is a top priority for the governments of these nations. This disregard for pets' safety deters owners from keeping pets or implementing pet insurance. Thus, throughout the forecast period, low acceptance in emerging nations will restrain the growth of the worldwide pet insurance market.

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Who are the Major Pet Insurance Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Pet Insurance Market. One of the major players in the market include:

Anicom Holdings Inc. - This segment focuses on providing pet insurance for a wide range of animals such as Japanese flying squirrels, squirrels, hamsters, mice, Guinea pigs, hedgehogs, turtles, and lizards. The company offers insurance for pets allowing policyholders to pay only uncovered amounts out of pocket simply by presenting their insurance card at the hospital (similar to the National Health Insurance system).

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Agria Pet Insurance Ltd.
• Allianz SE
• Anicom Holdings Inc.
• Dotsure Ltd.
• Embrace Pet Insurance Agency LLC
• Healthy Paws Pet Insurance LLC
• Hollard Insurance Group
• Independence Pet Group
• Intact Financial Corp.
• JAB Holding Co. Sarl
• 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.
• Trupanion Inc.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Dogs
  • Cats
  • Others
• Insurance Type Outlook 
  • Accidents and illness
  • Accidents only
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth, driven by the increasing adoption of pet insurance plans and rising veterinary care costs. As pet ownership continues to rise, particularly in developed economies, there is a growing awareness of the need to manage veterinary expenses through insurance coverage. This trend is fueled by the humanization of pets, with pet owners viewing their companions as family members and seeking to provide them with comprehensive medical care. Strategic initiatives by insurance providers and technological advancements in claims processing are further enhancing the accessibility and efficiency of pet insurance schemes.

With a focus on offering coverage for accidents, illnesses, routine care, and preventive measures, the pet insurance market caters to a diverse range of companion animals, including dogs, cats, horses, and exotic pets. As millennials become a dominant demographic in pet ownership, there is a heightened demand for customizable coverage schemes and online platforms offering virtual programs for pet health management. The accident & illness segment in pet care is witnessing a surge, prompting pet owners to seek liability insurance. Across different animal types, veterinary service costs, particularly for surgical vet visits, are rising. Providers like Japan Pet Food Association offer accident-only policies, balancing coverage with premium rates to meet diverse needs in the market. 

Moreover, the market is witnessing significant growth, driven by increasing awareness of diseases in cats & dogs and the importance of veterinary medicine. With rising pet adoption rates globally, pet owners are seeking financial protection through pet health insurance policies. These policies cover medical expenses, veterinary treatment, surgical visits, and routine check-ups, offering peace of mind to pet owners. The market caters to a diverse range of animals, including exotic pets and horses, with insurance coverage tailored to specific needs. As pet care spending rises and consumer knowledge about pet insurance increases, the market continues to expand. Advanced technologies and online platforms facilitate easy access to pet insurance policies, enhancing convenience for pet owners and ensuring comprehensive coverage for their beloved companions.

Additionally, the market is experiencing significant growth, driven by rising adoption rates of pets and increasing awareness of pet health. With the growing number of pet owners worldwide, there's a heightened demand for pet insurance coverage to mitigate veterinary service costs and medical expenses. The market caters to various segments, including accident & illness policies and accident-only policies, addressing the diverse needs of pet owners. As pet ownership continues to rise, particularly in developing economies, there's a surge in demand for comprehensive pet insurance plans covering a range of services such as routine vet visits, surgical procedures, and preventive care. Technology advancements have facilitated easy access to pet insurance through online platforms, enhancing convenience for pet owners. Additionally, the mental well-being of animals as companions drives the market, underscoring the importance of pet insurance in ensuring the health and happiness of beloved pets.

Pet Insurance Market Scope
Report Coverage	Details
Page number	164
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 31.41%
Market growth 2023-2027	USD 19.85 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	29.94
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 61%
Key countries	US, China, UK, France, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Agria Pet Insurance Ltd., Allianz SE, Anicom Holdings Inc., Dotsure Ltd., Embrace Pet Insurance Agency LLC, Healthy Paws Pet Insurance LLC, Hollard Insurance Group, Independence Pet Group, Intact Financial Corp., JAB Holding Co. Sarl, 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.
Market dynamics	Parent market analysis, market growth and trends, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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