The pandemic pet boom is one of the key factors expected to increase the market value of pet insurance over the next few years according to a new report.
With the increasing pet adoption, the global market is forecast to grow with an anticipated CAGR of more than 10% between 2020 and 2026.
The report from ResearchAndMarkets.com – ‘Global Pet Insurance Market Overview, 2020-26’ – categorises the market to forecast the revenues and analyse the trends in each of the following segments: based animal type (cat, dog and others), by insurance type (accidental and illness and accident-only endorsement) by the end-user (agency, broker, bancassurance, direct writing) based on region, countries and major companies.
In the year 2015, the value of the pet insurance market was at US$2.9bn. As healthcare costs for pets are going through the roof with innovations and rising demand, pet owners are increasingly adopting pet insurance schemes.
The dog segment holds the dominant share of the market, primarily accredited to dogs being the most preferred animals in most countries, the higher cost of maintenance, and their increased exposure to accidents. The dog insurance covered about 75% of the total market in 2020.
The cat segment is expected to witness considerable growth in the coming years, with the increasing adoption of smaller animals as indoor pets owing to the shrinking size of apartments in cities driving the demand. This is to have a direct impact on the cat pet insurance, growing at a CAGR of 13%.
The accident and illness plan holds the major share of the market. This is credited not only to the extensive coverage of the plan but because, with the aging of the pet, illness becomes inevitable. With new state-of-the-art technology, improving the quality of pet healthcare, medical bills can cost more than $10,000, especially in the case of surgery.
Brokers are one of the efficient indirect distribution systems, specifically targeting middle- and upper-class animal owners. The share of this segment is growing significantly due to increased efforts by brokers. The direct writing providers who offer maximum coverage with minimum premiums
will further impel the industry revenue, with an anticipated CAGR of 14%.
Europe holds the largest market share, primarily due to the high disposable income of the population, high rate of urbanisation and fast-spreading awareness regarding the benefits of pet insurance.