Pet insurance market slated for 8.1% CAGR by 2032

Several insurance companies now offer multi-pet insurance policies.

The global pet insurance market was valued at $6.05b in 2018 and is expected to reach $18.11b by 2032, reflecting a compound annual growth rate (CAGR) of 8.1% during this period, a Fortune Business Insights report projected.

The Asia Pacific region is anticipated to experience substantial growth from 2018 to 2026, driven by increased concern for pet health, changing attitudes towards pets as family members, rising disposable incomes, and the entry of major players into this emerging market.

Pet insurance helps cover veterinary costs, similar to health insurance for humans, either partially or fully. The market is projected to grow significantly due to increasing pet adoption worldwide, rising awareness in developing economies about pet insurance, and escalating veterinary service costs. 

“Growing competition among the players to grab a strong foothold in the market have led to the introduction of various novel policy schemes for pets. For instance, several companies offer multi-pet insurance policies, where under a single policy multiple pets can be enrolled,” the report said. 

“Additionally, several other players are offering concessions and offers in their pet insurance schemes to retain customer and thereby augmenting market growth. Also, various industry players are offering policy coverage for pets irrespective of their ages. Hence, such initiatives will significantly support a positive market growth trajectory during the forecast period,” it said.

Dogs were the dominant segment in 2018, holding the largest revenue share. This is due to their high adoption rates globally and the high costs associated with veterinary care, such as $621 for surgical visits and $231 for routine visits.

“As per Japan Pet Food Association, Japan had more than 10 million dogs as pets in 2014 and the rate is estimated to increase across the forecast period. Moreover, increasing incidence of animal disorder is another significant factor supporting adoption of pet insurance,” the report said.