Pet insurance is a type of insurance that comes under the classification of property and casualty insurance. It basically covers partly or in total unforeseen veterinary costs, such as accidental injuries, and cost of medicines, diagnostic tests, treatment, and surgical procedures. Some insurance plans may cover costs of vaccinations, neutering, and heartworm testing as well, but usually exclude any type of pre-existing disease or injury.
Some insurance policies will also pay when the pet dies and if it is stolen or lost. The insurance provider reimburses the owner when a claim is submitted to the insurance company after the pet has received the necessary medical care. Pet insurance policies can cover dogs, cats, and some other pets as well. There are basically two types of Pet insurance policies – non-lifetime and lifetime.
As the name suggests, lifetime insurance policies provide coverage for a pet for ongoing conditions throughout its lifetime. On the other hand, non-lifetime insurance policies provide coverage for conditions suffered by the pet during the course of the policy year. Pet insurance policies and their coverage can differ according to the region.
The global Pet insurance market is expected to reach USD 8840 million by the end of 2025, growing at a CAGR of 13.5% between 2019 and 2025. The growth of the Pet insurance market will be fuelled by an increase in the number of companion animals or pets across the world, along with growing awareness about Pet insurance and the benefits offered by it.
With the growth in pet ownership, more and more pet owners are opting for Pet insurance. This will propel the growth of the global Pet insurance market in the coming years. However, the high cost of insurance policies and lack of awareness about Pet insurance may limit the growth of the market. Further, government regulations can also act as a hindrance in the growth of the market.
The global Pet insurance market is presently dominated by Europe, as the penetration of Pet insurance in the region is very high. Increased awareness about Pet insurance, costly veterinary services, and improved facilities are also responsible for the high adoption of Pet insurance in Europe.
However, in the coming years, the Asia-Pacific Pet insurance market is expected to grow rapidly due to huge developments in veterinary infrastructure, government initiatives, increasing income of people, and increasing awareness about pet care. In the Asia-Pacific region, the market will be led by China, Japan, and India.
The penetration of Pet insurance is very low in several markets. So, these untapped markets are likely to provide lucrative opportunities for Pet insurance providers in the coming years. At present, the major players operating in the Pet insurance market are Petplan Limited, Trupanion, Inc, Direct Line Insurance Group plc, Petsecure, Nationwide Mutual Insurance Company, Hartville Group Inc., Royal & Sun Alliance Insurance Company of Canada, Inc., Pethealth Inc., PetFirst Healthcare LLC, and Embrace Pet insurance Agency, LLC.