United Kingdom Pet Insurance Market 2019: Consumer Research Report – ResearchAndMarkets.com

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DUBLIN--(BUSINESS WIRE)-- The "UK Pet Insurance Market 2019: Consumer Research Report" report has been added to ResearchAndMarkets.com's offering.

Interesting findings contained in the report are:

Most Renewers engage in the same actions as Switchers at the start of their customer journey but with a different final outcome (staying rather than leaving). Failure to find the right cover is likely to play a key role in the decision to stay. A large majority of Renewers search for alternative policies and/or haggle with an incumbent provider to get a better deal before they ultimately decide to renew. Not only do Renewers and Switchers act in similar ways, but both are also spurred into action by the renewal prompt.
When starting on a customer journey, pet insurance policyholders focus their initial deal searching on price comparison websites (PCWs) and online resources in general. However, just over one-third finally, purchase a policy via a PCW. More policyholders purchase directly from an insurance provider.
Consumers who own pet insurance find the experience satisfying and largely pain free.
Most claimants are satisfied with their claims experience because over nine-in-ten claimants had a completely or partially successful outcome to their last claim, and less than one-in-ten found the claims process hard to navigate

25% of all consumers own pet insurance, while almost half of consumers own a pet, resulting in just under half of pet owners (46%) owning pet insurance. Insurance ownership is significantly higher if the consumer owns a dog or a pedigree cat because pedigree breeds traditionally have more health problems compared with their mixed breed counterparts.

Owners with mixed breed dogs also show a high level of insurance ownership because dogs, in general, are the most likely pets to have accidents or get injured in fights. Owners of dogs and cats are the main customer base for pet insurance, especially dog owners: 97% of pet owners with pet insurance own either a dog or a cat.

For almost nine-in-ten pet insurance policyholders their customer journey decision each year is to switch or renew, in other words, they are not first-time buyers (FTBs) of pet insurance in the market. Three-quarters of policyholders renew their policies each year, with just over one-in-ten switching provider and a similar percentage being FTBs, buying their first pet insurance policy.

Pet owners owning cats and dogs, especially pedigree dogs, are the most likely to switch provider, which is related to the fact that these pet owners are likely to be paying the highest premiums, so have the greatest incentive to switch to save money.

When selecting a policy to buy, pet insurance policyholders tend to focus more on the cover on offer rather than the price. They also prefer to buy their cover from well-known branded providers.

Key Topics Covered:

1. Executive Summary

Key Recommendations
A market worth over £1 billion
And expected to top $2 billion by 2023
A market controlled by three big players
A market with growth potential - less than half of pet owners have insurance
Most pet owners take out standalone insurance and pay for it monthly.
Risk aversion and confidence help drive insurance uptake
Insured pet owners show a preference for an online customer journey
For most insurance owners the ultimate choice is to renew or switch
But Renewers are Switchers who can't find a better deal, especially better cover
The journey starts online
But the journey may not end there
As a group, policyholders focus on cover rather than price and like a leading brand
Don't assume a focus on cover or brands means the price is unimportant
Negotiations likely to centre on broad policy features
Being a policyholder is a good experience
16% of policyholders claim, and when they do the process seems to go smoothly
One-quarter are thinking of switching in the next year

2. Introduction

3. Profile Of The Insured Pet Owner

Around half of people have a pet, but only half of pet owners are insured
Middle class dog owners the most likely to be insured
Three types of pet owner
Dog and cat owners the most likely to be insured
Pet insurance policyholders tend to own standalone policies and pay for them annually
Sometimes insurance is not enough

4. How Pet Owners Approach Insurance

Risk aversion encourages insurance ownership
Giving consumers the ability to self-select insurance with confidence boosts uptake
Better offline support and buying options may help

5. The Customer Journey Begins

Online buyers the most likely to switch or enter the market
Pedigree dog owners the most likely to switch
Renewers and Switchers: different outcome but the same approach
And both Switchers and Renewers are spurred into action by the renewal prompt
Price comparison websites start the search
PCWs will lead next year's policy search
PCWs serve up the required information in an easy to use format
Policyholders prefer the direct route to purchasing

6. Price, Cover Or Brand

Online buyers are more price focused
Policyholders who like well-known brands buy direct
Agile Renewers who own Dogs and Cats an easier sell for major brands
But don't assume Cover First or Brand First means price does not matter at all
Negotiations likely to centre on broad policy features
And they need their information delivered in a concise manner

7. Being A Policyholder

Insurance providers are meeting their customer's expectations
Policy management is moving online
Almost one-in-five policyholders have claimed in the past year
Claimants are happy with the process

8. Ending The Journey: Customer Loyalty And Switching

One-quarter of policyholders are thinking of switching in the next year
Age, gender and social grade influence switching behaviour
Mixed breed owners the most likely to be thinking of switching
Switching is price led

9. Market Size And Trends

The pet population declines
But still a large pool of dogs and cats
Growing cost of paying for veterinary services
A market worth around £1.3 billion
Three big players
The market breaks the $2 billion mark in 2023

For more information about this report visit https://www.researchandmarkets.com/r/efj6ii

View source version on businesswire.com: https://www.businesswire.com/news/home/20190910005520/en/

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Source: Research and Markets