Pet Insurance Market is Estimated to Witness High Growth Owing to Increasing Pet Ownership
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| Pet Insurance Market |
Pet insurance provides financial protection for pets against unexpected illnesses and accidents. It helps cover veterinary care costs for pet surgeries and treatments by reimbursing pet parents or paying providers directly. The number of pet owners has grown considerably over the years resulting in increasing demand for pet insurance. Factors like humanization of pets and growing awareness about pet wellness among owners have encouraged the uptake of insurance for pets, which is otherwise an expensive option for unexpected veterinary bills.
The global
Pet Insurance Market is estimated to be valued at US$ 9.59 Mn in 2023 and is
expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as
highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increasing pet ownership presents a major market opportunity for pet
insurance providers. As owners perceive pets as family members and are willing
to spend more on their well-being, insurance has become an affordable
protective option against expensive vet treatments. Developing regions with
growing pet humanization but low insurance penetration such as Asia and Latin
America offer immense growth potential. Pet insurance players can capitalize on
this opportunity by launching customized policies to match the budget and needs
of different owner segments. Targeting the growing number of pet parents
through awareness campaigns highlighting the benefits of financial security can
drive higher adoption of insurance in developing markets going forward.
Porter's Analysis
Threat of new entrants: The pet insurance market has moderate threat of new
entrants due to the capital intensity required to set up pet insurance
platforms, acquire licenses and regulatory procedures.
Bargaining power of buyers: Buyers have moderate bargaining power in this
market as pet insurance is not a mandatory purchase and there are substitutes
available. Buyers can choose between different insurance providers based on
premiums, coverage and benefits offered.
Bargaining power of suppliers: Insurance companies have low bargaining power
over suppliers of raw materials, equipment and other inputs used in the
insurance business as there are many suppliers and inputs are standardized.
Threat of new substitutes: The threat of substitutes is low as there are
limited alternative options for pet insurance. Self-insurance or not insuring
pets are the main substitutes.
Competitive rivalry: The competitive rivalry is high due to the presence of
many insurance providers offering similar coverage and benefits. Insurance
providers compete based on premiums, coverage, customer service and reputation.
SWOT Analysis
Strengths: Established insurance providers have strong brand recognition,
distribution networks and customer loyalty. The pet industry has grown
significantly increasing market potential.
Weaknesses: Smaller insurers have less bargaining power over veterinary
services and costs. Complex documentation and claim process can delay pay outs.
Lack of standardization makes it difficult for buyers to compare policies.
Opportunities: Growing pet humanization trend and rising pet adoption during
pandemic increased scope. Developing markets in Asia Pacific are untapped. New
technologies can simplify product offerings, documentation and claims.
Threats: Economic downturn can reduce discretionary spending on pet care and
insurance. New regulations may increase compliance costs. Natural disasters and
diseases can impact underwriting profits.
Key Takeaways
Global
Pet Insurance Market Size is expected to witness high growth during the
forecast period supported by rising pet ownership and humanization. The global
Pet Insurance Market is estimated to be valued at US$ 9.59 Mn in 2023 and is
expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030.
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