Desire for financial security, more veterinary centers to lift pet insurance
The global pet insurance sector is anticipated to see a 14.3% CAGR through 2030.
The worldwide pet insurance sector is anticipated to see a value of $16.81 billion by 2030, according to Allied Market Research, which projects the market to see a 14.3% compound annual growth rate (CAGR) during the period.
During the pandemic, one in five households adopted a pet, the American Society for the Prevention of Cruelty to Animals reported. This has helped lift the market, as has the growing number of veterinary clinics that have opened globally, according to Allied Market Research.
Additionally, government initiatives promoting pet insurance policies and the adoption of technologies in the pet insurance space are expected to uncover new opportunities in the coming years, Allied Market Research reported.
Unexpected vet bill
Further, people seeking financial security against growing uncertainty is lifting the global market.
Demonstrating the uncertainty around pet care costs, nearly half of pet owners said they had underestimated the cost of care, according to the Synchrony Lifetime of Care study. The study found a $250-$500 veterinary bill was the amount to trigger anxiety for 21% of pet owners, while 19% reported a $100-$200 bill caused money concerns.
Overall, 1 in 3 pet owners will face an unexpected pet expense that will cause them finical worry, Synchrony reported.
However, a low level of awareness could hamper the market. Synchrony research found that 94% of pet owners didn’t have any type of insurance coverage for an animal when it was brought home.
Europe holds largest market share, Asia-Pacific to see highest CAGR
During 2020, Europe had the largest market share followed by North America, according to Allied Market Research, which noted the two regions combined to account for two-thirds of the global market. However, through 2030, the Asia-Pacific region is expected to see the fastest growth, with a forecasted 18.4% CAGR.
Although dogs made up the lion share of policies during 2020, accounting for more than four-fifths of the global market, insurance policies covering cats are anticipated to see higher growth during the forecast period, according to the research company.
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