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Economic Euthanasia- A primary fear behind the 10% growth of pet insurance market: Actual Market Research
Jun, 17
2021

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Economic Euthanasia- A primary fear behind the 10% growth of pet insurance market: Actual Market Research

 

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What can be the worst nightmare for a pet parent other than letting go of their gravely ill pet? At times, even if the treatment is an option, it would cost thousands of dollars, and it?€™s when they realize all they can do to end its suffering is to put it down. This scenario is known as Economic Euthanasia. Pet health insurance is technically property and casualty (P&C) insurance and not in the health insurance category. Despite this, it is health insurance. The purpose of pet insurance is to help bridge the gap between the costs of the healthcare a pet needs right now while savings are being gradually built up over time._x000D_
However, the fear of Economic Euthanasia is not the only reason for the pet parents enrolling for insurance. Owning a pet comes with its own cost set including a huge medical bill. The thought of like with humans, pet insurance might help to keep the expenses in check drove the market to USD 2.90 Billion in 2015. How much one has to pay for the coverage depends on a variety of factors, just as human insurance. These factors include the pet?€™s age, health profile, breed as a primary concern. Out of these major factors that one factor that helps in determining the insurance coverage is the breed. This is especially true in cases of dogs, due to the fact that certain breeds are predisposed to be vulnerable to certain medical disorders. Other factors associated include the type/ level of coverage, annual premiums, deductibles, incident caps, etc. The research report titled Global Pet Insurance Market Overview, 2020-26 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 end-user, based on region, countries & major companies._x000D_
As with human health insurance, pet health insurance offers several different types of coverage, each with its own list of coverage options and costs. The accident & illness policy coverage is the most comprehensive and pays for veterinary treatment for injuries, illness, disease, and typically any changes to your pet?€™s normal condition. This segment dominated the market with a high share of over 90% in 2015. Depending on what the insurer offers, some pet owners opt to include wellness coverage with a comprehensive accident and illness policy. _x000D_
With so many pet insurance options being readily available, it can be hard for the pet parent to figure out which one offers the best that suits their need. Globally, the direct writing providers will further impel the industry revenue, with an anticipated CAGR of 14%. Americans have taken notice of the rising cost of veterinary care. More than 3.1 Million pets were covered under a pet insurance policy in 2020 in the US itself, making it the global market leader. _x000D_
Evaluating the total average care cost, it is easier to conclude that paying less than USD 200 or USD 600 for the accident-only policy or accident & illness policy respectively would be a reasonable hedge against a sudden multi-thousand dollar bill. In the worst-case scenario, the bill could lead to something as awful as economic euthanasia. To provide transparency, pet owners should ask whether a pet insurance company will review their pet?€™s medical record and let them know upfront if there are any conditions they consider pre-existing and won?€™t be covered. Unfortunately, not all companies will do this. _x000D_
Unlike human healthcare, at this time there aren't any networks where vets accept only certain insurer's policies. One can generally use pet insurance at any licensed veterinarian including university, emergency, or specialty hospitals. Pet insurance is generally regulated by each state's department of insurance. Pet insurance companies have an appeals process to evaluate the complaint, and it is spelled out in the pet insurance policy. That said, not a high percentage of denied claims are overturned, but it's worth a shot. _x000D_
With the high premiums being a huge market hurdle, many alternatives are being formed in the industry. Eusoh is a community-sharing platform similar to Medishare in human healthcare. It looks the most like pet insurance and has a monthly cap on contributions by members. Therefore, for a lot of pet owners, the costs can be significantly less than pet insurance premiums. However, pre-existing conditions aren't covered. Pet Assure and Pawp can be an alternative in pets with pre-existing conditions or older pets where pet insurance premiums are unaffordable for some pet owners.