Pet insurance is a policy pet owners purchase to lower the overall cost of veterinary bills. With the increasing adoption of pets in households, consumers’ spending on effective insurance is likely to surge rapidly. These policies are quite similar to life insurance and cover a range of medications, surgeries, and other medical procedures, safeguarding pets’ health. The awareness regarding the insurance’s advantages may attract the attention of consumers. Often, the lack of treatment availability in a particular area provokes consumers to seek treatment from big medical institutions, affecting their financial stability. By adopting this policy, users can safeguard their furry friends by opting for the best medical treatments without worrying about financial constraints.
Fortune Business Insights™ estimates the pet insurance market size to reach USD 11.25 billion by 2026 at a CAGR of 8.0% during the 2019-2026 period.
Post COVID-19 Outlook: The Industry is Slowly Progressing Amid COVID-19 Relaxations and Availability of Medical Services
The industry faced a huge challenge during the COVID-19 pandemic due to the lack of resources and medical facilities. Relaxation of lockdown procedures has opened remunerative opportunities for the industry due to the availability of appropriate medical policies. The availability of medical facilities and the rapid adoption of digitization are expected to elevate the industry’s growth. Furthermore, rapid development of veterinary services is likely to enhance pet insurance adoption.
Factors Driving the Industry’s Growth
· Insurance providers offer flexible coverage plans for accidents, hospitalization, illnesses, and injuries
· Rapid digitization may enhance convenience during insurance paperwork and record keeping
· Increasing penetration of the policy in developed and developing countries
· Increasing prevalence of zoonotic disorders among companion animals
· Introduction of novel insurance schemes by insurance companies
· Emergence of several insurance companies globally
· Increasing disposable rates may attract demand
· Growing concerns among pet owners
· Concessions in insurance schemes
Major Challenges for the Industry
· Unfavorable policy coverage
· Lack of awareness
· Uneven policies
Competitive Strategies Undertaken by Policy Providers
Companies focus on expansion plans to enhance their worldwide growth opportunities. For example, in June, Trupanion stated plans to expand its overseas operations by hiring Agria Pet Insurance’s Wheeler. This development may allow Wheeler to expand its operations in Japan, the U.K., and Western Europe. Furthermore, companies are focusing on partnerships to offer owners high-quality and customizable coverage. For example, in March 2021, Waffle and Crum & Forster Pet Insurance Group partnered with ASPCA Pet Health Insurance to provide high-quality and customizable pet coverage in the U.S. This strategy may allow companies to elevate their brand image by satisfying consumer demand.
In addition, companies devise strategic partnerships to enhance their sales. For example, in January 2021, Nationwide Mutual Insurance Company partnered with Walmart to assist families owning pets to save money and time while filing pet prescription medications at Walmart pharmacies. This strategy may allow the companies to enhance pet insurance adoption and boost their market position.
Presenting Some Key Players:
· Trupanion (Washington, U.S.)
· Nationwide Mutual Insurance Company (Ohio, U.S.)
· ASPCA (New York, U.S.)
· Anicom Holdings (Shinjuku, Japan)
· 24PetWatch (Ontario, Canada)
· Pets Best Insurance Services, LLC. (Idaho, U.S.)
Increasing Digitalization and Spending May Favor the Industry
With rapid digitization of paperwork, cards, and other documents, insurance companies can provide optimum efficiency and convenience to users by enabling online insurance purchases. Rapid pet adoption favors the adoption of pet insurance while simultaneously encouraging companies to update their coverage schemes. The upgrading of policies may allow insurance companies to boost sales and enhance their reach. Users rapidly opt for efficient policies to avoid paying exorbitantly for treatment procedures. This factor favors the growth in sales. Also, rising spending capacity facilitates the industry’s growth. Strong investments in animal healthcare and medical facilities may allow for strong growth of the market.
Besides, the emergence of several types of animal disorders may allow companies to tailor insurance policies that cater to consumers and help them save costs. These factors highlight the strategies undertaken by the policy providers and the growth aspects of this industry due to increasing awareness and the emergence of several animal lovers globally. Therefore, this industry is estimated to witness remunerative growth opportunities.
About the author:
Anirudh Rao is a graduate of Mass Communication and Journalism. He loves writing and watching films. He is passionate about business studies and descending his expertise in paper research. Besides writing, he loves photography, cinematography, storytelling, music-making, and filmmaking.