Industry Analysis & Industry Trends
The Pet Insurance industry grew quickly during the past five years, expanding even during the economic downturn, as pet owners increasingly treated their pets as family members. Industry firms began to offer a wider variety of insurance options that offered more customized plans targeted towards pet owners with different demands and incomes. Trends that have been spurring growth during the past five years, such as rising pet ownership and disposable incomes, will continue to contribute to industry growth during the next five years.... purchase to read more
Industry Report - Industry Investment Chapter
The Pet Insurance industry exhibits a low level of capital intensity. For every dollar spent on capital, about $8.58 is spent on wages. Capital expenditures are generally used for running office operations including property and equipment used to conduct everyday business. As wages account for about 10.3% of industry revenue due to the sales related nature of pet insurance, thus requiring a relatively low amount of capital investment.
The ratio of labor to capital varies among different firms of different sizes. As the volume of businesses increases, the level of capital intensity declines due to scale, as the need for capital investments regarding claims processing, policy administration and other accounting related activities do not increase with an increase in sales... purchase to read more