Global pet insurance market revenue is expected to surpass US$10 billion by 2025, according to a new research report by Global Market Insights, Inc.
In a statement, Global Market said that the demand for pet insurance was rapidly gaining popularity owing to the availability of innovative pet insurance policies that cover various aspects of pet reimbursement.
Rising pet adoption in developed as well as developing economies is significantly supporting pet insurance market expansion, Global Market added. European countries such as the United Kingdom and Spain have the maximum penetration rate in terms of pet adoption, although Asian countries, at the nascent stage of development, will show huge potential for growth owing to increase in disposable income. Changing customer preference regarding pet adoption in developing economies will significantly boost pet penetration rate across the analysis period, Global Market added.
According to Global Market, the major factor limiting the growth of the pet insurance market is lack of standardized pet health codes for reimbursement, which makes claims processing difficult leading to rise in customer attrition. Moreover, lack of awareness about pet insurance in various developing economies further impedes the industry growth.
Accident policies insure pets in case of accidental injury in a motor vehicle incident, electrocution, burns, bone fractures, fight wounds, snake bite toxicity, and other accidents. Global Market forecasts accident policies to show a steady growth of 6.5 percent across the forecast timeframe.
Insurance providers offer dog health insurance plans for injuries, illnesses, and wellness care. The dogs segment was estimated to hold maximum revenue share of 80.8 percent in 2018 owing to increasing adoption of dogs across the globe. Countries such as the United States, Argentina, and France have the highest population of pet dogs, thus propelling the growth of this segment of the market, Global Market said.
It added that the industry in the United States is still in its growing phase and is expected to grow at a fast pace compared to other countries. It attributes the growth to increasing consumer awareness regarding various novel pet insurance policies coupled with the presence of several major industry players. Moreover, the increasing trend of pet adoption in the United States will further augment market growth. Additionally, rising concerns among the population pertaining to their pet's health and growing adoption of exotic pets in various states of America is another major growth fostering factor.
Learn more: https://www.gminsights.com/industry-analysis/pet-insurance-market.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].