While kinships among humans are conventional, affinities between animals and individuals are surreal. Associations with pets are considered as a rewarding experience as they aren’t defined by conformist notions of love but by loyalty. Reports from several studies suggest more than 75% of the owners consider them as part of the family whereas over 60% of owners allow them to sleep in their bedrooms.
Like human beings, pets are prone to diseases and one in three requires emergency vet treatment annually. An average dog owning household is expected to spend over $375 per year and horse owners are likely to spend over $370 annually, whereas cat owners expect to spend over $190 per year on veterinary bills. Owners, especially millennials, are willing to spend on their animals. The US household spent more than $72 billion in 2018 on pet health insurance care, which is 4.5% higher than in 2017. Animal food and related products earned revenue of more than $45 billion in Europe in 2018. Hence, the increased interest in animal welfare is likely to opt for animal protection cover.
Pet Accidents and Illness Insurances
The accident and illness segment captured over 90% of the market in 2019 and is expected to grow at a promising CAGR during the period 2019–2025. Insurance policies cover reimbursement for accident and illness, including hereditary conditions and behavioral traits among pets. The average premium range for accident and illness insurance is likely to remain between $30 and $50 per month for dogs and $20 and $45 for cats. Although this policy is expensive than low-cost accident only plan, the owners are likely to opt for it due to the increase in animal welfare concept and the need to prevent expensive veterinary bills.
The growth in the millennial population is expected to improve spending on their animal and their wellness products. Insurers are likely to target this population segment in the US and the UK as millennials prefer the company of pets. In regions such as MEA, the number of exotic pet animals such as tortoise, turtles, and parrots is expected to grow. Insurance players can make use of the opportunity to introduce new coverage plans for them, which is likely to boost the market. The region is likely to witness high adoption rates due to the increase in disposable incomes.
Although Latin American countries such as Mexico, Brazil, and Argentina are expected to have the highest percentage share of owners, the awareness of pet health insurance is significantly low. The insurers are likely to invest efforts and awareness to grow in these markets where the penetration is expected to be less than 1%. Increased awareness in APAC countries such as China, Japan, and South Korea is likely to stimulate growth.
Pets Accident Only Insurance
Accident only coverage includes exam fees and costs associated with diagnostics and treatments for accidents and not for prevailing illness which is likely to be the major reason for the affordable low premiums. The average claim per month is about $20 on an average and the basic plan starts from $10 across the regions of the US, Canada, and the UK. The low awareness among the owners in the APAC, MEA and Latin American region is likely to enable early adopters and innovators in the region to try out cheap accident only plans. The accident only policy segment generated a revenue of $217.06 million in 2019. The major reason for low shares in the market is the suitability of insurance plans for young and healthier dogs.
- Healthy Paws Pet Insurance
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