When insurance firms launched social media initiatives, the results were rewarding.
Los Angeles, CA (PRWEB) October 02, 2012
The Pet Insurance industry grew quickly during the past five years, expanding even during the economic downturn. The major factor contributing to the growth in the industry is the change in consumer trends among pet owners. A growing positive attitude toward pet care boosted the industry during the past five years as pet owners increasingly treated their pets as family members. Pet owners thus began taking the health of their pets more seriously and sought to mitigate the risk of incurring significant veterinary expenses for treating ill or injured pets. Also, as per capita disposable income recovered from recessionary lows, more households were willing to spend on pet insurance plans. While revenue growth slowed slightly during the recession, industry revenue remained positive during the past five years. During the five years to 2012, industry revenue grew at an average annual rate of 6.0% to $650.6 million in 2012, according to IBISWorld industry analyst Andrew Krabeepetcharat.
In addition, Pet Insurance industry firms began to offer a wider variety of insurance options that offered more customized plans targeted towards pet owners with different demands and incomes. More pet insurance companies are offering plans that pay for preventative care such as vaccinations or elective procedures such as neutering that were formerly unavailable. The introduction of new services has increased profit for industry players.
Over the five years to 2017, industry revenue is forecast to grow at an average annual rate of 5.5% to $850.5 million, Krabeepetcharat says. Trends that have been spurring growth during the past five years will continue to contribute to industry growth during the next five years. The number of pets in the United States is expected to continue to grow, increasing the number of potential pet insurance policy holders. At the same time, per capita disposable income is forecast to grow as well, thus giving pet owners more of an incentive to take care of their pets as opposed to ignoring their pets' potential health problems. The industry has an extremely high concentration level, with the top four players expected to account for most of industry revenue in 2012. Concentration has risen slightly since 2007, with the largest player losing some market share. The industry's largest player, VPI, enjoyed strong market share until about a decade ago when some new players entered the market. For more information, visit IBISWorld’s Pet Insurance in the US industry report page.
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IBISWorld industry Report Key Topics
This industry underwrites insurance policies for pets and pays veterinary costs related to illness or injury.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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