Pet Health Insurance Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global pet health insurance market is projected to grow exponentially by 2032, growing at a high CAGR from 2024 to 2032. Growth in the market can be attributed to factors such as the rising pet population and pet ownership, along with growing awareness of animal health. Government initiatives aimed at improving animal health and the increasing uptake of pet insurance policies are also contributing to this trend. In major markets like North America and Europe, many pet owners are purchasing pet insurance due to the significant rise in pet care spending in recent years. However, the rising pet care costs and high costs of veterinary equipment may pose a significant challenge to the pet health insurance market's expansion.

Pet Health Insurance Market Dynamics to 2032

Driver: Rise in companion animal population and pet ownership

Over the years, companion animals such as dogs and cats have been transformed and raised remarkably. Most homes in the West, especially in North America, now have companion animals. Also, in developing countries such as India and China, the population of companion animals has steadily increased in recent years. Growth in the pet population is expected to drive demand for pet care products and services, which in turn will support the growth of the Pet Health Insurance market. As per the National Pet Owners Survey (2023-2024) by the American Pet Products Association, approximately 86.9 million U.S. families (or 66%) own some form of a pet. The American Veterinary Medical Association gave such statistics as this steadily increasing pet-owning household, which is going higher and higher, from 31.3 million in 1996 to 59.8 million in 2024. This ever-increasing global trend in pet ownership, including emerging economies, has created a large group of pet owners who are concerned about their pet’s health and are willing to pay for any means necessary to keep their pets healthy. As these pets are increasingly being viewed as family, their basic grooming and maintenance is also being taken care of, including purchasing policies to insure against medical expenses, thereby boosting the market growth.

Restraint: Lack of awareness among pet owners

The lack of awareness and understanding by pet owners regarding the benefits and values of Pet Health Insurance is limiting the growth of the Pet Health Insurance market. Most pet owners are not aware that pet insurance brings financial security to cushion unexpected veterinary expenses, whether these include emergency treatments, surgery, or preventive care like vaccinations and wellness checks. This gap in knowledge thus inhibits the growth of the market by presenting possible customers with no perceived benefits in purchasing pet insurance. Insurers should thus prioritize educational measures to show pet owners the practical benefits of coverage. Measures such as highly competitive pricing in premiums, flexibility in policies of diverse needs, and utmost clarity in terms and coverage would help build trust and promote acceptance, raising awareness and understanding the potential of this market.

Opportunity: Untapped growth potential in emerging markets

With an increase in disposable incomes, increasing urbanization, and changing attitudes toward pets from being companions to family members, regions like Asia, Latin America, and some regions of Middle East and Africa’s are experiencing an increased number of pets. These changes in culture along with the rising awareness of veterinary care, contributes to the expansion of Pet Health Insurance market. In countries such as India and Brazil, pet owners are growing increasingly concerned with the veterinary costs associated with chronic conditions, surgeries, and preventive care. Here, insurers can address these concerns by developing region-specific policies that cover commonly encountered illnesses or injuries in local breeds.

Moreover, the expanding involvement of international veterinary and pet care players in emerging markets, lead in the development of better veterinary infrastructures, advanced diagnostic instruments, and specialized treatment programs, are helpful for increasing demand for Pet Health Insurances. Further collaborations with veterinary clinics, and local pet care businesses, accelerates the adoption of insurance products. Furthermore, government policies and initiatives in some emerging markets are slowly transforming the landscape of pet-related services. For instance, public awareness campaigns about responsible pet ownership and vaccination have improved the health status of pets and, by implication, the uptake of insurances. Therefore, as these economies grow with the increasing pet ownership, and growing awareness of veterinary care, make emerging markets the next frontier for the global Pet Health Insurance industry.

Challenge: Limited awareness & training and shortage of veterinarian in low-income countries

A major challenge to the growth of the Pet Health Insurance market is the scarcity of qualified veterinarians and pathologists in emerging markets. In the Asia Pacific and Latin American regions, a lack of veterinary professionals severely limits acceptability to quality veterinary care, which is a major factor in the adoption of Pet Health Insurance. In 2023, India has around 81,938 veterinary professionals, which is significantly less than the required strength of about 110,000–120,000 for maintaining an ideal ratio of one veterinarian for every 5,000 animals. This gap in the workforce limits the usage of veterinary infrastructure, which leads to delayed diagnoses and treatment of companion animals. Therefore, any shortage of veterinary practitioners not only affects animal healthcare but tends to reduce the confidence of pet owners in the usefulness of Pet Health Insurance, delaying its acceptance and growth in the market.

Pet Health Insurance Market Report Scope and Insights

Pet Health Insurance Market Recent Developments and Insights

• In June 2024, Trupanion, Inc. (US), a leading provider of medical insurance for pets, and Boehringer Ingelheim (Germany), a global leader in animal health innovation, have announced a strategic partnership to enhance pet healthcare. The collaboration will focus on early disease detection, education, and better management of pet health, combining Trupanion’s best-in-class insurance model with Boehringer’s veterinary expertise.
• In January 2024, Five Sigma (US), a leader in cloud-native claims management solutions, partnered with Odie Pet Insurance (US) to revolutionize pet insurance claims. This partnership utilized Five Sigma’s advanced SaaS platform and Odie’s mission-driven approach to simplify claims processes, enhance operational efficiency, and provide seamless experiences for pet owners.
• In April 2024, Chubb (US) announced the acquisition of Healthy Paws, a U.S.-based managing general agent specializing in pet insurance, from Aon plc. This deal strengthened Chubb's position in the growing pet insurance market and built on their decade-long partnership, with Healthy Paws continuing its mission under Chubb's leadership.
• In July 2024, Odie Pet Insurance (US) partnered with Insuritas (US) to integrate its offerings into the BUNDLE embedded insurance platform, providing financial institutions access to customizable pet insurance plans. This collaboration aimed to address the growing demand for affordable and comprehensive pet insurance, aligning with the rising costs of veterinary care.
• In July 2023, Pets Best Insurance Services, LLC (US), a leader in Pet Health Insurance and has expanded its partnership with JAB's Independence Pet Group (US). Under this collaboration, IPG's subsidiary, Independence American Insurance Company (IAIC), will provide underwriting services to meet the rising demand for pet insurance nationwide.

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