This report categorizes the market to forecast the revenues and analyze the trends in each of the following segments:
animal types (cat, dog, others)
insurance types (accidental & illness, accident only endorsement)
end-users (agency, broker, bancassurance, direct writing)
The increasing expenditure on the pet has been a major driver for the pet insurance market in North American countries. Along with this, there has been a visible incline in the pet population, which gave ample scope for the market. The pet insurance industry in the year 2015 was valued at USD 1.11 Billion.
The market is expected to expand owing to the opportunities such as the presence of major players who are aiming to bridge the gap of the prevailing insufficient coverage. Apart from this, the fact that the pet adoption rate is increasing with every passing year and also an evident hike in the health-related issues among which leads to expensive health care are to push the market to a CAGR of over 8% in the forecasted period.
The majority of the pet owners show a strong preference towards the accident & illness policies which covers treatment costs of common mishaps like broken bones, poison ingestion, surgeries, urinary tract infections, burns, and X-rays, among others. This segment of the region covered almost the entire revenue, contributing to over 97% in 2015. Accident-only policy coverage is now gaining much popularity due to an upsurge in electrocution, motor vehicle accidents, snake bite, and bone fractures. Such policies have become massively popular for their budget-friendly nature and high reimbursements. The accident-only segment is expected to grow over a CAGR of 22% in the forecasted period.
The average pet insurance cost is higher for dogs compared to cats for accident and illness policies. Yet, with the high number of dog pet adoption, the dog insurance segment accounted for more than 3/4th of the market share in 2020. However, with the increasing health issues resulting in deadly disorders like cancer, diabetes, FIV, Heartworm, etc. in cats the cat parents are inclined towards insurance which is to allow the segment to grow with a CGAR of over 10%.
The North America pet Health Insurance Association is the primary government organization that works collectively with veterinary professionals, animal welfare organizations, and insurance providers to drive the adoption of pet health insurance. The market is dominated by the agency segment which accounted for a market share of 41% in the year 2020. Leading insurance permits various novel pet schemes to retain consumers. Various insurance policies such as schemes that cover pets of different ages, multi-pet insurance policies that include multiple pets during a single plan attract a sizable number of consumers.
The US has the most significant pet population which has aided it to become an extensive market shareholder not only in the regional market but also in the global market. Currently, the US market has more than 12 key market players. Private players tend to supply insurance policies with maximum coverage plans and minimum premium offers.
The pet insurance in the region comprises at least 20 companies, several of whom underwrite multiple white labels or other co-branded products and all together forming an additional 20 other pet insurance product brands. Private players tend to supply insurance policies with maximum coverage plans and minimum premium offers. Leading insurance agencies permit various novel pet schemes to retain consumers, which will further foster market growth in the region.