San Francisco, 13 May 2024: The Report Pet Insurance Market Size, Share & Trends Analysis Report By Coverage Type (Accident-only, Accident & Illness), By Animal Type (Dogs, Cats), By Sales Channel (Agency, Broker, Direct), By Region, And Segment Forecasts, 2024 - 2030

The global pet insurance market size is expected to reach USD 29.94 billion by 2030, registering a CAGR of 14.15% from 2024 to 2030, according to a new report by Grand View Research, Inc. The key factor driving the industry growth includes increasing veterinary care costs as a result of advancements in medical technology and treatments. Thus, pet owners are seeking insurance to help cover these expenses. According to the American Pet Products Association (APPA), the total pet spending in the U.S. alone was estimated to reach a record high of over $100 billion in 2023. This includes expenses, such as pet food, supplies, over-the-counter medications, veterinary care, and other services. The increasing trend in pet spending reflects the growing importance of pets in people's lives and the willingness of pet owners to invest in the well-being of their animals.

Furthermore, pet insurance providers are offering a wider range of coverage options, including customizable plans that cater to different needs and budgets, making insurance more accessible and attractive to pet owners. For instance, in August 2023, Nationwide launched its most cutting-edge pet protection product, empowering pet owners to tailor coverage in each category to suit their pet's requirements and financial constraints. The introduction of highly customizable pet insurance plans signifies a significant trend in the market. This innovative approach recognizes the diverse needs of pet owners and their animals, providing a flexible and personalized solution. As pet insurance becomes more tailored and adaptable, it is likely to attract a broader audience, fostering increased adoption rates. This trend emphasizes the industry's commitment to meeting individualized customer needs and contributes to the overall growth and evolution of the market.

In addition, increased regulatory support and legislation advocating for pet welfare are expected to drive the demand for pet insurance, as owners seek to comply with legal requirements and provide the best possible care for their pets. For example, in some European countries, pet insurance is not mandatory, while in others, it may be required by law. The National Association of Insurance Commissioners (NAIC) has developed a Pet Insurance Model Act to create regulatory guidance for states regarding pet health insurance. Moreover, some regulations, such as mandatory microchipping or pet travel requirements, have made certain forms of insurance a necessity. For example, the EU Pet Travel Scheme necessitates compliance with specific health and identification measures when traveling with pets. This has directly increased the demand for pet insurance to meet these regulatory obligations.

The growing pet population, adoption of pet insurance in underpenetrated markets, increasing veterinary care costs, initiatives by key companies, and humanization of pets are some of the key factors driving the market growth. The latest findings from the 2023 State of the Industry (SOI) report by NAPHIA indicate that there are currently 5.36 million insured pets across North America. This represents a 21.7% increase compared to 2021 when the total number of insured pets in the area was 4.4 million. The rising incidence of diseases in cats & dogs and the increasing trend of pet adoption are expected to propel market growth.

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In addition, there is a growing need for pet insurance to help mitigate expenses associated with serious medical conditions like accidental injuries and cancer, thereby fueling market expansion. The surge in demand for veterinary healthcare facilities is also expected to drive the adoption of pet insurance, as these services often involve significant capital investment, specialized personnel, and specialized diagnostic equipment, leading to higher treatment costs for pet owners. In addition, increasing disposable income of pet owners, especially in developing economies, has made pet insurance more affordable and accessible, driving market growth.

Pet Insurance Market Report Highlights

• The accident & illness coverage type segment dominated the market with a share of about 84.94% in 2023 and is anticipated to grow at the fastest CAGR of 16.95% from 2024 to 2030. Since pet accidents and illnesses are more common, posing a significant financial strain on pet owners, which results in a higher need for pet insurance
• The dogs segment attributed to the largest market share in 2023 in terms of animal type. The other animal type segment includes small mammals, horses, reptiles, & birds, and is projected to grow at the fastest CAGR from 2024 to 2030
• By sales channel, the direct sales segment held the highest share in 2023 and is estimated to grow at the fastest CAGR from 2024 to 2030
• Europe held the largest share of about 44.19% of the overall market in 2023. Asia Pacific is anticipated to grow at the fastest CAGR of about 6.63% from 2024 to 2030
• The rising number of pet adoptions globally is a major factor driving market growth. In addition, there is a growing awareness and concern among pet owners about their pets' health, leading to an increased demand for pet insurance

The COVID-19 pandemic posed significant challenges for various stakeholders in the companion animal industry, including pet owners, veterinarians, veterinary hospitals, and animal health companies. However, the industry quickly responded by implementing supportive measures to ensure continued access to veterinary care and related services. The pandemic-induced challenges also prompted pet parents to become more aware of the importance of mitigating financial risks by acquiring pet insurance policies. A survey conducted by Petplan, a leading player in the UK market, revealed a rise in pet ownership during 2020, with dogs being the most favored pets followed by cats.

Approximately 47% of respondents reported acquiring pets for the first time, and overall, around 26% of pet owners in the UK welcomed a new pet amid the COVID-19 pandemic. Three key reasons for getting a pet were identified to be work-from-home conditions, desire for companionship, and more time spent at home due to lockdown & movement restrictions. One-fifth of the respondents stated that they were more likely to buy an insurance policy for their pets. Overall, the pandemic increased the demand for risk protection among pet parents. Companies, such as Animal Friends Insurance, began offering coverage for remote consultation by partnering with Joii Pet Care. This, combined with growing pet humanization and expenditure, will propel market growth.

Pet Insurance Market Report Scope

Key Pet Insurance Companies:

The following are the leading companies in the pet insurance market. These companies collectively hold the largest market share and dictate industry trends.

• Trupanion, Inc.
• Deutsche Familienversicherung AG (DFV)
• Petplan (Allianz)
• Animal Friends Insurance Services Limited
• Figo Pet Insurance, LLC
• Direct Line
• Nationwide Mutual Insurance Company
• Embrace Pet Insurance Agency, LLC
• Anicom Insurance
• ipet Insurance Co., Ltd.
• MetLife Services and Solutions, LLC
• Pumpkin Insurance Services Inc.