Pet Insurance Market Size and Trends
The pet insurance market size is expected to grow from US$ 11.2 billion in 2023 to US$ 38.0 billion by 2031; it is anticipated to expand at a CAGR of 16.5% from 2023 to 2031. The market growth in the pet industry is being driven by various factors, including the expanding pet population, the adoption of pet insurance in untapped markets, the rising costs of veterinary care, strategic initiatives by key companies, and the growing trend of humanizing pets.
Pet Insurance Market Analysis
The animal industry faced significant challenges during the COVID-19 pandemic, impacting various stakeholders such as pet owners, veterinarians, veterinary hospitals, and animal health companies. However, the industry swiftly adapted by implementing supportive measures to ensure uninterrupted access to veterinary care and related services. These challenges also led to an increased awareness among pet parents about the need for financial protection, resulting in a surge in the adoption of pet insurance policies. A survey conducted by Petplan, a prominent player in the UK market, indicated a rise in pet ownership in 2020, with dogs being the preferred choice, followed by cats.
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Pet Insurance Market: Strategic Insights
Market Size Value in US$ 11.2 billion in 2023 Market Size Value by US$ 38.0 billion by 2031 Growth rate CAGR of 16.5% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Pet Insurance Market: Strategic Insights
| Market Size Value in | US$ 11.2 billion in 2023 |
| Market Size Value by | US$ 38.0 billion by 2031 |
| Growth rate | CAGR of 16.5% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Pet Insurance Industry Overview
- Pet insurance is a specialized form of insurance coverage that provides financial protection to pet owners against unexpected veterinary expenses. It operates on a similar principle to health insurance for humans, offering coverage for medical treatments, surgeries, medications, and other healthcare services for pets.
- Pet insurance policies typically involve a monthly or annual premium payment, and in return, the policyholder receives reimbursement for eligible veterinary expenses incurred during the policy period. The reimbursement amount is based on the coverage limits, deductibles, and co-pays specified in the policy.
- The primary purpose of pet insurance is to mitigate the financial burden associated with veterinary care, which can be substantial, especially in cases of accidents, injuries, or serious illnesses.
Pet Insurance Market Driver
Growing Pet Population to Pet Insurance to Drive the Pet Insurance Market
- Several key factors are driving the pet insurance market growth. First and foremost, the growing pet population is contributing to the expansion of the pet insurance market growth. As more individuals and families welcome pets into their homes, the demand for pet insurance as a means of protecting their furry companions and managing potential medical expenses is on the rise.
- For instance, as per Forbes, the pet ownership landscape in the United States has undergone significant growth over the past three decades. As of 2024, approximately 66% of U.S. households, equivalent to 86.9 million homes, own a pet. This represents a substantial increase from the 56% reported in 1988.
- Pet ownership statistics highlight the integral role that pets play in the lives of their owners, with 85% of dog owners and 76% of cat owners considering their pets as members of their families.
Pet Insurance Market Report Segmentation Analysis
- Based on animal type, the pet insurance market forecast is segmented into dogs, cats, and others. The dogs segment is expected to hold a substantial pet insurance market share in 2023. The increasing prevalence of pet adoption, the expanded range of services offered by insurance companies, and the rising disposable income in key markets are significant factors driving the market share in the pet insurance industry.
- Major players in this sector include Trupanion, Inc., Petplan, PetFirst Healthcare LLC, Nationwide Mutual Insurance Company, and Embrace Pet Insurance Agency, LLC. As per the findings of a study conducted by the American Pet Products Association (APPA) between 2023 and 2024, approximately 66% of households in the United States own at least one pet, resulting in a total of around 86.9 million households.
- Among the insured pet population, dogs account for approximately 80%, while cats represent the remaining 20%. The growth in the pet population throughout the region, coupled with the availability of diverse insurance policies catering to the varied needs of pets, is expected to bring new pet insurance market trends.
Pet Insurance Market Regional Analysis
The scope of the Pet Insurance market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant Pet Insurance market share. In 2022, the North American pet insurance market witnessed a significant increase, with approximately 5.36 million pets being insured, marking a growth of around 22% compared to the previous year. This data was reported by The North American Pet Health Insurance Association (NAPHIA), a trade association for the pet insurance industry in the United States and Canada. The rising number of pet owners opting for insurance coverage for their pets indicates a growing market demand.
Pet Insurance Market Report Scope
The "Pet Insurance Market Analysis" was carried out based on coverage type, animal type, sales channel, and geography. In terms of coverage type, the market is segmented into accident-only and accident & illness. Based on animal type, the market is segmented into dogs and cats. Based on sales channels, the market is segmented into agency, broker, and direct. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Pet Insurance Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the pet insurance market. A few recent key market developments are listed below:
- In January 2024, Five Sigma, a prominent provider of cloud-based claims management solutions, entered into a strategic alliance with Odie Pet Insurance, a company committed to enhancing the accessibility and affordability of pet insurance. This collaborative partnership seeks to transform the claims processes within the pet insurance sector and enhance overall industry operations.
(Source: Five Sigma, Company Website)
- In November 2023, Fetch, a leading company in the pet industry, established a strategic partnership with Best Friends Animal Society, a renowned national organization dedicated to eradicating the euthanasia of dogs and cats in American shelters by 2025. Under this partnership, Fetch will make significant contributions to support Best Friends' initiatives in finding loving homes for shelter pets and ultimately realizing their vision of creating a no-kill nation.
(Source: Fetch, Company Website)
- In September 2023, Independence Pet Group (IPG), a prominent pet insurance platform known for its comprehensive services, successfully acquired Felix, the exclusive pet insurance brand dedicated solely to cats in the United States. This strategic acquisition aligns with IPG's recognition of the growing demand for cat pet health insurance, which has emerged as the fastest-growing segment in the market. By integrating Felix into its portfolio, IPG aims to better serve cat owners and address the historically underrepresented cat insurance market. The completion of this acquisition further strengthens IPG's position as one of North America's largest pet insurance and services organizations, supporting the well-being and safety of over 800,000 pets in the U.S. and Canada.
(Source: Independence Pet Group (IPG), Company Website)
Pet Insurance Market Report Coverage & Deliverables
The market report on "Pet Insurance Market Size and Forecast (2021–2031)", provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Coverage Type, Animal Type, Sales Channel, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The key players holding majority shares in the global pet insurance market are Trupanion, Inc., Direct Line, MetLife Services and Solutions, LLC., Figo Pet Insurance, LLC, and Petplan (Allianz).
The global pet insurance market is expected to reach US$ 38.0 billion by 2031.
The pet insurance market size is expected to grow from US$ 11.2 billion in 2023 to US$ 38.0 billion by 2031; it is anticipated to expand at a CAGR of 16.5% from 2023 to 2031.
The growing trend of humanizing pets is anticipated to play a significant role in the global pet insurance market in the coming years.
Various factors, including the expanding pet population, the adoption of pet insurance in untapped markets, and the rising costs of veterinary care, are driving the market growth in the pet industry.
- Trupanion, Inc.
- Direct Line
- Nationwide Mutual Insurance Company
- MetLife Services and Solutions, LLC.
- Deutsche Familienversicherung AG (DFV)
- Petplan (Allianz)
- Animal Friends Insurance Services Limited
- Embrace Pet Insurance Agency, LLC
- PoilicyBazaar
- Figo Pet Insurance, LLC
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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