The global pet insurance market, valued at $6.05 billion in 2018, is expected to reach $18.11 billion by 2032, according to a report by Fortune Business Insights. This growth represents a compound annual growth rate (CAGR) of 8.1% over the forecast period.
Asia Pacific Region Poised for Significant Growth
The Asia Pacific region is predicted to see substantial market growth between 2018 and 2026. Factors driving this growth include a heightened concern for pet health, shifting attitudes towards pets as family members, increasing disposable incomes, and the entrance of major players into this emerging market.
Pet Insurance: Covering Veterinary Costs
Pet insurance operates similarly to human health insurance, helping to cover veterinary expenses either partially or fully. The market is expected to expand significantly, fueled by a global increase in pet adoption, rising awareness of pet insurance in developing economies, and the growing costs of veterinary services.
Innovation and Competition Among Market Players
The report highlights that growing competition among insurance providers has led to the introduction of innovative policy schemes. One notable development is the availability of multi-pet insurance policies, allowing multiple pets to be covered under a single policy.
Additionally, many companies are offering discounts and special offers on pet insurance plans to retain customers, which in turn supports market growth. Several industry players now provide policy coverage for pets regardless of age, a move that is expected to further boost the market during the forecast period.
Dogs Lead the Market
In 2018, dogs dominated the pet insurance market, holding the largest revenue share. This dominance is attributed to high global adoption rates and the significant costs associated with veterinary care. For example, surgical visits for dogs can cost around $621, while routine visits average $231.
The Japan Pet Food Association reported that Japan had over 10 million pet dogs in 2014, and this number is expected to increase throughout the forecast period. The rising incidence of animal disorders is also a key factor driving the adoption of pet insurance.
Conclusion
The pet insurance market is on a strong growth trajectory, with innovations in policy offerings and increasing pet ownership contributing to its expansion. As the market evolves, both established and emerging players are expected to introduce more competitive and inclusive insurance products to cater to the growing demand.
