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The lowest contributing Middle East & Africa Pet Insurance to grow with 13% CAGR: Actual Market Research
Jun, 17
2021

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The lowest contributing Middle East & Africa Pet Insurance to grow with 13% CAGR: Actual Market Research

 

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The increasing rate of urbanization along with the increasing disposable income of people and rising knowledge about pet care are expected to place the market value of the pet insurance industry in the Middle East & Africa. The region is the lowest contributor globally accounted for merely USD 0.12 Billion in 2015. The research report titled Middle East & Africa Pet Insurance Market Outlook, 2026 by Actual Market Research categorizes the market to forecast the revenues and analyze the trends in each of the following segments: based animal type, by insurance type, by the end-user, based on countries & major companies. _x000D_
The rising share of middle-age groups is driving the demand for the market and is to increase the awareness of the need for pet health insurance thereby tapping into the unexplored markets of the countries. However, the dog insurance type leads the market with a market share of nearly 75% in the year 2020. Most of the dog insurance demand is met by expatriates as dogs are regarded ?€?bad omen?€™ in Islam. Pet ownership is on the rise due to the growing number of single professionals, empty-nesters, couples who delay having children, and families who need additional guard dogs. Up until recently, there were no pet insurance firms in 2016, when it comes to horses, equine insurance was available through international and local companies. The Horse UAE provides owners different insurance plans that include veterinary costs, major medical and colic surgery, mortality, loss of use, and third-party insurance. However, by the forecasted period, the market growth rate of the other animal insurance segment is expected to be more than 23%._x000D_
When PetSecure, the only pet insurance company in the country had to shut in 2016, it led to a situation of excess unmet demand in the region. There weren?€™t any insurance companies offering domestic pet insurance, especially in the UAE, which held a high potential to afford these insurances. Heavy medical fees charged by the vet are increasing the need for pet insurance in the region. Recently companies like Tokio Marine and Nichido Fire Insurance are now bringing pet insurance into the UAE as part of their Tokio Home Protection cover. This is expected to improve the market of pet insurance. The agency segment in the region accounted for the highest market share, while the direct writing segment is to portray the highest CAGR in the coming period. _x000D_
The extremely hot climate of the country is more harmful to dogs than to cats. Thus the share of Accident and Illness policy is prevalent in the country, especially for dogs. Accidents Only& Endorsements are consumed mostly by dog owners as cats are house pets and don?€™t need regular walking. The accident-only segment is expected to grow with an anticipated CAGR of over 30% through the forecasted period. The quality of service among clinics and stores is highly uneven, thereby putting people at the risk of visiting an ?€?unsafe?€? clinic in return for more affordable fees, or visit a safer clinic with their pets for a much higher bill. Arabia has a dominant Muslim population who consider dogs ?€?unclean?€™. Thus the share of the cat population precedes that of the dog population. However, the extremely hefty charge of vet fees for them restrains them from having pet insurance. The increasing share of the young population and the middle-aged population is expected to increase awareness regarding pet insurance and high disposable incomes are to increase the purchasing power of the country. _x000D_
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