Asia Pacific Pet Insurance Market size exceeded USD 1.1 billion in 2020 and is expected to witness over 8.1% CAGR from 2021 to 2027.
Pet insurance is an insurance policy bought by a pet owner which helps to lessen the overall costs of expensive veterinary bills. The insurance plans can be tailored to pet’s age, potential breed-specific health conditions, existing health issues, and among other needs.
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Certain factors that are driving the Asia Pacific market growth include increasing number of pet adoption and rising awareness regarding pet insurance in the region. Moreover, in the past few years, it has observed a significant rise in the adoption of animals including dogs and cats as companion animals. For instance, as per the Chinese pet industry 2018 white paper, more than 91.49 million dogs and cats were being raised as pets in urban areas of China, accounting for 9% of urban population in 2017.
Furthermore, increasing spending capacity of people, rising knowledge about pet care, supportive initiatives by the government, and rising per capita animal health expenditure in developing countries such as India and China will support regional industry expansion. However, lack of awareness about various zoonotic diseases in developing countries, that can cause great harm, restricting the market growth to some extent.
The accident & illness segment accounted for more than USD 1 billion in 2020. The policy provides reimbursement for treatments of poison ingestion, allergies, urinary tract infections, surgeries, hospitalizations, and broken bones, among others. Thus, the comprehensive nature of such policies is the major growth rendering factor that attracts large number of pet owners. Furthermore, increasing prevalence of chronic conditions such as diabetes and cancer will further drive the segment growth.
The dogs segment size is poised to reach USD 1.5 billion by 2027 attributed to high healthcare cost associated with dogs as compared to other pets. For instance, the cost for a single surgical visit is estimated to be USD 426 for a dog. Also, insurance companies offer policy coverage to wider range of dog breeds including cross breed, sheep dogs, exotic dogs that are pets.
The private provider segment revenue was around USD 953.4 million in 2020 due to increasing number of private insurance providers operating in the region. Also, the private providers offer various novel pet schemes to retain consumers that will boost the segment growth. Furthermore, multi-pet insurance policies that include multiple pets in a single plan attract large number of customers.
China pet insurance market is set to observe around 12.8% growth rate through 2027 owing to growing pet adoption coupled with increasing awareness about animal health. Furthermore, rising number of pet insurance clients and rising per capita animal health expenditure will support the country growth. For instance, it was found that in 2015, there were only 5,000 pet insurance clients in China, but in 2019 the number rose to 1,60,000 pet insurance clients in the country.
Major players operating in the Asia Pacific pet insurance industry are Anicom Holding, The Oriental Insurance Company, Oneplan. Royal & Sun Alliance, Petplan and Hollard, among others.
Companies undertake various strategies such as mergers, collaborations, acquisitions, and geographic expansions to strengthen their market share. For instance, in August 2020, Bajaj Allianz General Insurance launched a pet dog insurance policy in India. The policy covers pet dogs over their lifetime from age 3 months to 10 years. This strategy is expected to enhance their service offering and expand its customer base in Indian market.