Pet insurance market size to grow at a CAGR of 31.41% between 2022 and 2027, North America will account for 61% of the market growth, Technavio

NEW YORK, March 18, 2024 /PRNewswire/ -- The global pet insurance market size is estimated to grow by USD 19,852.9 million between 2022 and 2027. The market is estimated to grow at a CAGR of 31.41% during the forecast period. North America's dominance in the global pet insurance market is projected to continue, with an estimated 61% contribution to market growth. Technavio's detailed analysis underscores regional trends and drivers, highlighting the US, Canada, and Mexico as key contributors due to high pet adoption rates and robust pet insurance services. Factors such as affordability and access to experienced service providers bolster market expansion. Despite the pandemic's initial impact, North America's pet insurance market is poised for stabilization and growth, fueled by urbanization, rising incomes, and increased veterinary clinic operations. This presents lucrative opportunities for B2B players in the pet insurance sector.

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Segment Overview
Technavio has segmented the market based on type (dogs, cats, and others), and insurance type (accidents and illness, accidents only, and others).

• The growth of the market in the dog segment will be significant during the forecast period. Dogs are the most preferred pet animals. Thus, with the increasing adoption of pet dogs, there is a corresponding rise in the demand for insurance for dogs. Also, the high cost of treatments and the increasing prevalence of various diseases among dogs are driving the growth of the segment.

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The growth of the market is driven by rising concerns over the well-being of pets. 

Pet owners are becoming more conscious of the well-being of their pets. The prevalence of common illnesses such as canine parvovirus, distemper, and heartworms has increased the demand as well as the cost of pet care services. Hence, pet owners are opting for insurance coverage to bear all the annual or monthly expenses of their pets. Also, the rising instances of dog thefts and accidents related to pets have increased the demand for pet insurance. All these factors are driving the growth of the market.

• Growing inclination toward premiumization in pet care services is the key trend in the market.
• The low adoption of pet insurance in developing countries is a major challenge in the market.

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Analyst Review

The pet insurance market is experiencing significant growth worldwide, driven by a surge in pet ownership, coupled with rising awareness about the importance of veterinary care and the humanization of pets. With the increasing adoption of dogs, cats, and other companion animals, there's a growing realization among pet owners about the necessity of safeguarding their furry friends' health and well-being.

In recent years, several factors have contributed to the expansion of the pet insurance industry. The COVID-19 pandemic, marked by lockdowns and movement restrictions, has fueled a desire for companionship, leading to a notable uptick in pet adoptions. Moreover, the shift towards work-from-home conditions has enabled individuals to spend more time with their pets, further strengthening the bond between humans and animals.

As pet ownership continues to rise, so do veterinary care costs. From routine check-ups to unforeseen medical emergencies, the expenses associated with maintaining a pet's health can be significant. This has propelled the demand for pet insurance, as owners seek financial protection against veterinary treatment and diagnostic costs. Furthermore, the prevalence of feline and dog-related diseases underscores the importance of having comprehensive coverage to address unforeseen health issues.

Key players in the pet insurance market include Petplan, Animal Friends Insurance, Trupanion, Joii Pet Care, and others. These companies offer a range of policies tailored to meet the diverse needs of pet owners, including liability insurance and coverage for veterinary treatments. Additionally, initiatives such as the North American Pet Health Insurance Association (NAPHIA) aim to promote the adoption of pet insurance and raise awareness about its benefits.

In Europe, the pet insurance market is witnessing steady growth, driven by an increasing companion animal population and a growing awareness about the importance of pet insurance. Companies like Luko, Nationwide Mutual Insurance Company, and Deutsche Familienversicherung AG are actively expanding their presence in this region, offering innovative insurance solutions to pet owners.

As the demand for pet insurance continues to soar, collaboration between insurers, veterinary healthcare facilities, and animal health companies becomes imperative. By leveraging technological advancements and data analytics, stakeholders can enhance customer experience and streamline claims processing. Moreover, partnerships with organizations such as the Department of Clinical Veterinary Science and the Pet Food Institute can facilitate research and development efforts aimed at improving pet health outcomes.

In conclusion, the pet insurance market is poised for substantial growth, driven by factors such as increasing pet ownership, rising veterinary care costs, and the humanization of pets. With a focus on innovation and collaboration, industry players are well-positioned to capitalize on this trend and provide comprehensive insurance solutions to meet the evolving needs of pet owners.

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Market Overview

In middle of the rising trend of humanization of pets and increased pet ownership due to work-from-home conditions, Europe's pet insurance market is witnessing significant growth. Veterinary care costs, alongside the proliferation of veterinary hospitals, underline the necessity for pet insurance coverage. Key companies like Petplan dominate this sector, catering to the needs of underpenetrated markets. Animal health companies play a vital role in shaping insurance offerings tailored to the evolving needs of pet owners. As pet populations continue to grow, the demand for comprehensive coverage is on the rise, driving the expansion of the pet insurance market across Europe.

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Table of contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Insurance Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix

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SOURCE Technavio