Pet insurance is defined as an insurance that can be paid partly or totally for the veterinary treatment of the insured pet. Pet insurance services involve policy coverage for pet accidents, injuries and for pet illnesses. Also, various pet insurance providers are offering innovative insurance coverage policies for multiple pets to attract large customer base. Furthermore, with increasing healthcare cost for pets, the pet owners are readily adopting pet health insurance, thereby fostering the market growth. The insurance market is driven by the value of emotions like the grief associated with the loosing of loved pets. Further, many prominent incidents of human cruelty, accidents, thefts, and problems during old age create a sense of trauma in pet parents. The emerging concept of pet parents transforming from being just pet owners, has created a greater sense of responsibility in the people across the world. Along with this the greater emotional bond created by the inculcation of this concept has encouraged the consumer to go an extra mile for their pet. The pet insurance measure being one of them.
Today there are many pet owners taking pet insurance policies for their pets, to manage costs and be prepared for unexpected veterinary emergencies. This insurance policy is similar to the health insurance policies for humans. The pet insurance covers only the veterinary expenses, not more than that. In last few years pet insurance have gained popularity in the USA, it has been stated by the Society for Human Resource Management that 15% of the organizations are have started offering pet insurance as an employee benefit. This is also encouraging many pet-friendly companies are supporting their employees who are pet owners by offering pet insurance policies. By this the pet insurance policy is growing with huge profits.
According to the report published by Actual Market Research titled “United States (US) Pet Insurance Market Research Report, 2027”. The pet insurance market in the USA is expected to grow with more than 7% CAGR by the end of the forecasted period. The insurance market is divided into insurance types and by animal types. As per the report the animal type sector including cats and dogs, is growing with the highest CAGR. The animal type pet insurance is dominating because most Americans own dogs rather than cats, so the animal type sector is increasing its demand in the market.
Also, various innovative pet insurance coverage policies for multiple pets are offered by the service providers to attract a larger customer base. Thus, to reduce the rising burden of pet healthcare costs, the pet insurance industry is expected to register robust market growth over the forecast period. The accident & illness policy segment dominated the market with a high share in 2021, aided by the comprehensive nature of the insurance policies. The customers prefer this policy over the accident only& endorsements segment, as it covers the majority of illnesses and accidents. This is undoubtedly the most favourable policy for young animals and thus drives the market. In the recent past, there has been a high adoption rate, especially of dogs; due to this, dog insurance covered a large market share in 2020. Dogs get cancer almost at the same rate at which humans get, while cats get affected by cancer in fewer numbers. According to the Veterinary Cancer Society, globally, cancer is the leading cause of death in 47% of dogs over 10 years. The trend such as pet humanization is driving the pet insurance market.
In this era, people are inclined toward the culture of nuclear families and hence it is resulting in the demand for pet adoption as people have started accepting pets as their family members even in the United States (US). There is an exponential surge in pet cat adoption which is to have a direct impact on cat pet insurance too, growing with a significant CAGR. Usage of various strategies such as digital marketing and competitive pricing of the monthly premiums are the major factors leading to market growth. Also, the development of innovative insurance schemes coupled with various efforts to increase customer awareness and satisfaction will further fuel the market expansion in the future.
The pet insurance market has witnessed significant growth in the past few years; however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden decline in 2020. This is attributed to majority of the diagnosis and veterinary centers being closed due to lockdown implemented by various governments. In addition, COVID-19 has highly affected the industries in terms of growth, economy, health and mental wellbeing of every individual. Various pet associated companies are taking extraordinary care of pets during pandemic times. Insurance companies are trying to innovate and modify the policy coverage and policies depending upon the incidences of health conditions.
Considered in the report
• Geography: United States (US)
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027
Aspects covered in the report
• Market Size by Value for the period (2016-2027F)
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
• Market Share by Animal Type (Cat, Dog & others)
• Market Share by Insurance Type (Accidental and Illness & Accident only endorsement)
The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Finance & Insurance Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
List of Figures
Figure 1: United States (US) Pet Insurance Market Size – By Value 2016 to 2027F (In USD Billion)
Figure 2: United States (US) Pet Insurance Market Size – By Animal Type 2016 to 2027F (In USD Billion)
Figure 3: United States (US) Pet Insurance Market Size – By Insurance Type 2016 to 2027F (In USD Billion)
Figure 4: Market Attractiveness Index, By Animal Type
Figure 5: Market Attractiveness Index, By Insurance Type
Figure 6: Porter's Five Forces Meter of Pet Insurance Industry in the United States (US)
List of Tables
Table 1: United States (US) Pet Insurance Market Size of Dogs (2016 to 2027F) (In USD Billion)
Table 2: United States (US) Pet Insurance Market Size of Cats (2016 to 2027F) (In USD Billion)
Table 3: United States (US) Pet Insurance Market Size of Others (2016 to 2027F) (In USD Billion)
Table 4: United States (US) Pet Insurance Market Size of Accidents & Illness (2016 to 2027F) (In USD Billion)
Table 5: United States (US) Pet Insurance Market Size of accidents only & Endorsements (2016 to 2027F) (In USD Billion)
Table 6: Key Facts of Company 1
Table 7: Key Facts of Company 2
Table 8: Key Facts of Company 3
Table 9: Key Facts of Company 4
Table 10: Key Facts of Company 5
Table 11: Key Facts of Company 6
Table 12: Key Facts of Company 7
Table 13: Key Facts of Company 8
Table 14: Key Facts of Company 9
Table 15: Key Facts of Company 10