Pet Insurance Market Size to Reach USD 31.6 Billion by 2030

According to Vision Research Report, the global Pet Insurance market size was USD 8.2 Billion in 2021 and is expected to reach USD 31.6 Billion by 2030 and register a revenue CAGR of 16.6% during the forecast period, 2022-2030.

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Growth Factors

The key factors driving the market growth include the rising number of pets across the globe, high veterinary care costs, and the need to reduce financial risk. As per the Pet Food Manufacturers Association, about 59% of households had pets in the U.K. in 2021. Dogs were the most popular at about 33%, followed by cats at 27%. Other pets include rabbits, indoor birds, guinea pigs, tortoises and turtles, horses, and others.

Rapidly growing consumer awareness, underpenetrated market, and product acceptance have benefited the market. According to Petplan, in the U.S., the average cost of an unexpected visit to the veterinarian was around USD 800-1,500 in 2018. This burden could be eased with an insurance plan in place. Moreover, untapped opportunities in developed and developing economies are anticipated to provide lucrative growth to this market in the coming years.

Growing pet population, adoption of pet insurance in underpenetrated markets, increasing veterinary care costs, initiatives by key companies, and humanization of pets are some of the key drivers of this market. In 2020, Trupanion reported that over 800,000 pets were insured under the company’s policies across key markets in the U.S., Canada, and Australia.

Report Coverage

By Coverage Type Analysis

The accident and illness segment dominated the market and accounted for the largest revenue share of 84.0% in 2021. It is also estimated to witness the fastest CAGR in the coming years. The key factors contributing to this growth include high veterinary treatment and diagnostic costs, a rise in the companion animal population, and an increase in awareness about pet insurance.

The others segment, on the other hand, comprising of liability insurance policies among others, is projected to see a higher uptake in Europe. This is due to countries such as Germany making it mandatory for pet owners to have dog liability insurance.

By Animal Type Analysis

The dogs segment dominated the market and accounted for the largest revenue share of more than 50% in 2021. The segment comprising horses, small mammals, etc. is expected to grow at the fastest CAGR of more than 17% over the forecast period.

As per FEDIAF, around 88.0 million households across the European Union owned at least one pet in 2020. The number of pets was estimated to be 110 million cats, 89 million dogs, 51 million birds, 29 million small mammals, and 9 million reptiles.

By Sales Channel Analysis

The direct sales segment dominated the market and held the largest revenue share of over 34.0% in 2021. This is attributable to the high usage of direct sales strategies by key pet insurance providers.

Deutsche Familienversicherung AG, for instance, reported that direct sales contributed to 87.3% of the company’s new business during HY2020. The company also reported a 21.4% increase in online sales compared to HY 2019.

The others segment comprising animal care centers, vet clinics, and more are anticipated to register the fastest growth of over 17.0% during the forecast period. This is due to an increasing number of companies onboarding veterinary care providers and pet stores as a means to reach consumers or pet parents.

By Regional Analysis

Europe dominated the pet insurance market and held the largest revenue share of over 43.0%. This is owing to the growing adoption of pet insurance, rising pet ownership, and the presence of key companies. According to the Department of Clinical Veterinary Science and the Pet Food Institute, 23.0% of pets in the U.K. and 30.0% of pets in Sweden were covered by pet insurance policies by 2017 and this penetration was anticipated to increase over time.

In North America, the market for pet insurance held the second-largest revenue share as of 2021. However, only 1-2% of the pets in the U.S. are insured thus presenting lucrative growth opportunities. Asia Pacific region is estimated to grow the fastest at a rate of over 18%.

Key Players

• Trupanion, Inc.
• Deutsche Familienversicherung AG (DFV)
• Petplan (Allianz)
• Animal Friends Insurance Services Limited
• Figo Pet Insurance, LLC
• Direct Line
• Nationwide Mutual Insurance Company
• Embrace Pet Insurance Agency, LLC
• Anicom Insurance
• ipet Insurance Co., Ltd.

Market Segmentation

• By Coverage Type
  • Accident & Illness
  • Accident only
  • Others
• By Animal Type
  • Dogs
  • Cats
  • Others
• By Sales Channel
  • Agency
  • Broker
  • Direct
  • Bancassurance
  • Others
• Regional
  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Netherlands
    • Sweden
    • Norway
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • Saudi Arabia
    • Israel

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