The global pet insurance sector, valued at $6.05 billion in 2018, is set to expand to $18.11 billion by 2032, according to a recent report by Fortune Business Insights. This growth represents a compound annual growth rate (CAGR) of 8.1% over the forecast period.
The Asia Pacific region is projected to witness notable expansion from 2018 to 2026. This growth is attributed to heightened awareness of pet health, evolving perceptions of pets as integral family members, increased disposable incomes, and the entry of major players into the region’s burgeoning market.
Pet insurance, akin to human health insurance, assists in covering veterinary expenses either partially or entirely. The anticipated market growth is fueled by a rise in global pet adoption, increasing awareness of pet insurance in developing nations, and escalating costs of veterinary services.
According to the report, heightened competition among insurers has spurred the development of innovative pet insurance products. For instance, several companies now offer multi-pet policies, allowing coverage for multiple pets under a single plan.
“In addition, various providers are introducing promotions and discounts to retain customers and stimulate market growth. Some insurers are also offering coverage regardless of the pet’s age, which is expected to contribute positively to market expansion during the forecast period,” the report noted.
In 2018, dogs were the leading segment in the pet insurance market, commanding the largest share of revenue. This dominance is due to their widespread adoption and high veterinary care costs, with surgical visits averaging $621 and routine visits costing $231.
The Japan Pet Food Association reported that Japan had over 10 million dogs in 2014, with numbers expected to rise in the coming years. The increasing prevalence of animal disorders is also a significant factor driving the adoption of pet insurance.
