Report Overview

Escalating veterinary medical expenses, growing consumer awareness, and increasing usage of pricy medical treatments and pharmaceuticals are major factors driving the United States Pet Insurance Market at the significant growth rate.

United States Pet Insurance Market - Industry Trends & Forecast Report 2028           

A majority of private firms provide pet insurance only for dogs and cats. As a result, pet owners considering insuring other animal species resort to public insurance companies. These organizations are trusted by a large portion of the people, and they have a high claim settlement ratio expanding the availability of pet illness and accident insurance. Pet owners have started to choose accident and illness coverage insurance for their pets as it covers a wide range of diseases and catastrophes. Allergies, broken bones, poison ingestion, swallowed items, allergies, hospitalizations, surgeries, X-rays, and laboratory tests are all covered under these insurance. As pet adoption is so high in the United States, it is expected that the pet insurance market would expand at a CAGR of 10.6% between 2022 and 2028. The availability of numerous policies by pet insurance firms fuels the demand for the product. Additionally, the ongoing introduction of novel pet insurance plans and the spreading of knowledge about these policies via digital platforms are expected to boost the growth of the market for pet insurance during the forecast period.

United States Pet Insurance Market - Overview

The expansion of the market will be greatly accelerated by the increase in personal insurance carriers. Private providers frequently offer insurance plans with the highest levels of coverage and the lowest possible premiums. Leading insurance enables a variety of cutting-edge pet retention programs. A substantial number of consumers are drawn to a variety of insurance policies, such as plans that cover pets of different ages and multi-pet insurance policies that cover numerous dogs under one plan. Such laws let private companies capture the highest market share in the United States pet insurance market. Due to the efforts by current providers to educate customers about escalating veterinary expenses and the numerous advantages of pet medical insurance programs, the market for pet insurance is growing. Furthermore, an increase in the number of companion animals would lead to a rise in the need for veterinary healthcare facilities. Rising demand for pet insurance to reduce out-of-pocket costs for serious illnesses such as cancer and unintentional injuries has been positively expected in driving the growth of the global US pet insurance market. Numerous barriers and challenges will prevent the market's growth. During the period analysis, United States pet insurance market's development might be slowed by risks to pet insurance providers, entry obstacles, and fierce competition. However, the advancements in technology and the untapped possibilities in new areas provide strong growth prospects.

Growth Drivers

Rapidly increasing number of pet owners and surging veterinary service costs

The increased frequency of feline and canine-related illnesses as well as the rising adoption of pets is significant market drivers. Additionally, it is expected that an increased demand for pet insurance will spur the market expansion in the near future by lowering out-of-pocket costs for serious medical issues including accidental deaths and cancer. The need for veterinary facilities is also increasing, which is believed to be a contributing reason in the growth in pet insurance demand. Veterinary services are usually capital expensive in addition to requiring skilled veterinarians, educated staff, and properly designed diagnostic equipment. There could be a higher demand for pet insurance coverage, as pet owners' treatment expenditures could raise.

United States Pet Insurance Market - Increasing demand

Aging population and the rising trend of pet adoption in the United States are driving the expansion of the country’s pet insurance market. Adopting a pet is also thought to help manage with sadness, loneliness, and low blood pressure, among other things. Additionally, the industry landscape is expected to be much improved by the growing awareness around pet insurance programs as a result of a substantial effort by insurance providers.

Restraints

Low level of awareness and lack of knowledge about pet illnesses

The growth of the pet insurance industry may be hampered by low level of awareness about pet insurance plans and services. Another aspect affecting market growth is the general lack of knowledge about numerous infectious and zoonotic diseases. Furthermore, as there are fewer private physicians operating in veterinary clinics, pet insurance is rarely prioritized. Cats and dogs are the most common companion animals that can act as a direct or indirect source of zoonotic illness. Although such illnesses can be prevented by taking precautions, a lack of knowledge about such diseases may seriously affect both infected animals and their owners. As a result, the aforementioned concerns plus a general lack of knowledge about pet insurance coverage are some of the main obstacles to the market's expansion.

Impact of COVID-19 on United States Pet Insurance Market

Pet owners, veterinarians, veterinary clinics, and animal health businesses all faced difficulties as a result of the COVID-19 pandemic. However, the sector quickly started to implement protective measures to guarantee access to veterinary care and other services in response to the pandemic. The difficulties posed by the pandemic also made pet owners aware of the benefits of obtaining pet insurance coverage to lower financial risk.

United States Pet Insurance Market - By Type of Coverage

The market is organized into three sales channels: agency, broker, and other. Based on type of coverage, insurance only for accidents and some illnesses is known as accident only coverage. In the coming years, insurance only for accidents and some illnesses is expected to record its growth at the fastest CAGR. High veterinarian treatment and diagnostic expenses, an increase in the number of companion animals, and more knowledge of pet insurance are the main drivers of this expansion. Pet insurance providers most frequently provide accident and illness coverage. These offer coverage for a range of issues, including drugs, diagnostic procedures, and acute and chronic illnesses. The segment is expected to grow at the fastest rate in the coming years since accident and illness policies offer comprehensive coverage to pet owners.

United States Pet Insurance Market - By Animal Type

In United States Pet Insurance Market by animal type, the dogs segment dominated the market and had the highest market share.  The cats segment could grow significantly in the coming years. Horses, small mammals, and other related segments are expected to experience the quickest CAGR during the forecast period. Growing pet adoption, the development of insurance companies' service offerings, and rising disposable income in important areas are the main drivers of this share.

Trupanion, Inc., Petplan, Nationwide Mutual Insurance Company, PetFirst Healthcare LLC, and Embrace Pet Insurance Agency, LLC are a few of the key companies in this market. Future market expansion is expected to be fueled by the rising pet population in the area as well as the availability of different insurance policies to accommodate varied pet demands.

Competitive Landscape

In the coming years, it is expected that the country's business environment will be influenced by the presence of significant industry players. In a nutshell, market share will be increased, as leading industry companies increasingly implement different methods, such as acquisitions, mergers, collaborations, and geographic expansions. Major players in the United States Pet Insurance Market include Agria Pet Insurance, Anicom Holdings Inc., Dotsure Ltd., Fairfax Financial Holdings Ltd., Hollard Insurance Co. Ltd., JAB Holding Co Sarl, Oneplan Underwriting Managers Ltd., Petplan Iberica S.L, and Proto Seguro Companhia de Seguros Gerais.

Recent Developments

More than 20 million Chewy consumers will be able to choose from an exclusive lineup of pet wellness and health insurance products thanks to a partnership between Trupanion and Chewy in December 2021. With the help of this strategic alliance, clients will be able to choose between wellness programs, preventive care, and all-inclusive insurance policies for illnesses, accidents, and chronic disorders. This collaboration improved the range of healthcare services and goods. Petplan was purchased by Warburg Pincus in October 2019. Through the acquisition, Warburg Pincus' funds and resources were made available to Petplan. With the help of this transaction, Warburg Pincus was able to significantly increase its investment in the pet insurance industry and hence PetPlan's operations.

Scope of the Report

By Policy Coverage

• Accident Only
• Accident and Illness
• Others

 By Animal type

• Dogs
• Cats
• Others

By Sales Channel

• Agency
• Broker
• Others