North America Pet Insurance Market size crossed USD 1.9 billion in 2020 and is anticipated to expand at a CAGR of 9.7% from 2021 to 2027.
One of the major factors leading to momentous expansion of the North America pet insurance industry is the growing awareness of pet owners pertaining to various advantages of availing insurance coverage for their pets. Companies and other associations are constantly involved in thorough marketing and education of pet owners. The pet insurance companies adopt digital marketing through social media platforms and their websites to increase the consumer awareness. As the market penetration in North America is about 2%, these companies are investing huge portion of the revenue generated towards marketing and sales activities. Moreover, various companies are making efforts to increase the transparency about the pet insurance coverage and gaining trust of the pet owners.
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High cost associated with pet care is one of the chief growth impending factors. As per the American Pet Products Association (APPA), in 2019, pet care expenditure in America reached to USD 75.4 billion. Also, treatment of few diseases such as pet cancer and other chronic diseases may cost more than USD 10,000. Thus, increasing expenditure on pet healthcare services will stimulate the demand for pet insurance.
North America Market, By Policy Coverage
The accident & illness segment value exceeded USD 1.8 billion in 2020 attributed to comprehensive nature of these insurance policies. Additionally, as majority of the illnesses and accidents are both covered in these insurance policies, the customers tend to prefer accident & illness policy coverage for their pets. Furthermore, treatment costs for poison ingestion, broken bones, allergies, swallowed objects, burns, urinary tract infections, laboratory tests, X-rays, surgeries, and hospitalizations are covered under this policy.
North America Market, By Animal
The revenue for dog segment in the North America pet insurance market will exceed USD 3.1 billion by 2027. Insurance providers offer dog health insurance plans for injuries, illnesses, and wellness care, among others. Dog segment is estimated to hold maximum revenue share in 2020 owing to increasing adoption of dogs across the region. Also, few of the insurance companies offer policies for chronic and new recurring conditions at no additional cost.
North America Market, By Provider
The private provider segment held over USD 1.8 billion revenue in 2020. Adoption of various strategies such as competitive pricing of the monthly premiums and digital marketing are the major factors leading to market growth. Also, development of innovative insurance schemes coupled with various efforts to increase the customer awareness and satisfaction will further boost the market revenue. Furthermore, private players offer maximum coverage plans coupled with minimum premium that will further add to the market demand.
North America Market, By Country
U.S. market size for pet insurance surpassed USD 1.8 billion in 2020 and is expected to show significant growth of more than 9.9% during the forecast timeframe. Growing proportion of geriatric population in the country will have a positive impact on the regional market expansion. Increasing trend of pet adoption in the U.S. will spur the market share. For instance, as per the National Pet Ownership Survey conducted in 2017-2018 by the American Pet Products Association (APPA), nearly 78 million dogs were owned by the Americans. Also, it was reported that 44% of households have a dog. Furthermore, presence of major market players across the country will further propel the market growth.
Competitive Industry Landscape
Prominent companies operating in the market include Nationwide, Crum & Forster, Embrace Pet Insurance Agency and Pet for Health among others.
Companies undertake various strategies such as mergers, collaborations, acquisitions, and geographic expansions to strengthen their market share. For instance, in October 2019, Embrace announced a partnership with PawSupport for a 24/7 Pet Help Line for assistance through online chat, email, and a video chat. This move has provided new services to policyholders, ultimately helping the company with expanding its operations.