Strong growth forecast for pet insurance industry

Strong growth forecast for pet insurance industry | Insurance Business Australia

Insurance News

Strong growth forecast for pet insurance industry

Pets other than dogs are predicted to significantly impact the CAGR increase

Insurance News

By
Kenneth Araullo

While the pet insurance market was valued at $10.1 billion in 2023, a report from Allied Market Research revealed that it is projected to reach $38.3 billion by 2033, growing at a compound annual growth rate (CAGR) of 14.5% from 2024 to 2033.

The increase in the number of pet owners and their willingness to spend on pet healthcare is driving demand for pet insurance. The trend of pet humanization and the strong emotional bond between pet owners and their pets are also contributing factors.

Additionally, the high costs of veterinary care, including treatments for chronic and acute illnesses, are making pet insurance appealing, particularly accident and illness policies that cover a wide range of conditions. Advancements in pet healthcare technology, such as telemedicine and wearable devices, are expected to create new opportunities for pet insurance providers.

The accident-only segment held the highest market share in 2023, accounting for nearly four-fifths of global pet insurance market revenue, and is expected to maintain this status through the forecast period. This segment is seen as cost-effective for avoiding large, unexpected veterinary bills.

The “others” segment is projected to experience the highest CAGR of 18.4% from 2024 to 2033, driven by diversification in pet types and improvements in pet policies, including coverage for animals like turtles.

Dog dominance

The dogs segment dominated the market in 2023, accounting for nearly four-fifths of global pet insurance market revenue. This dominance was attributed to the high adoption rates of dogs, their role in safety, and the high cost of their maintenance.

The “others” segment, meanwhile, is expected to achieve the highest CAGR of 19.3% from 2024 to 2033, as rising veterinary costs make pet insurance more attractive to a broader range of pet owners.

The agency segment held the highest market share in 2023, representing more than two-thirds of global pet insurance market revenue. This was due to the increasing number of pet owners in North America and Europe and the growing awareness of pet health and well-being.

The “others” segment was projected to attain the highest CAGR of 17.5% from 2024 to 2033, driven by advancements in pet healthcare technology, such as telemedicine and wearable devices, which offer comprehensive and convenient coverage options.

Europe led the market in 2023, accounting for around two-fifths of pet insurance market revenue. This was attributed to the high adoption rates of pets in the UK, Italy, France, Russia, and Germany, as well as the variety of policy coverage options available.

Asia-Pacific is expected to witness the fastest CAGR of 18.6% from 2024 to 2033, driven by growing awareness of pet care and pet insurance, especially during the COVID-19 lockdown. In India, the pet population is growing at 12% annually, with dogs comprising 85% of the total.

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