Safe and hound: Growth in the number of pets will help brighten the industry's future

IBISWorld’s Pet Insurance Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Pet Insurance industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.


Industry Threats & Opportunities

  • Mounting consumer acceptance of industry offerings is forecast to benefit well-branded insurers
  • The industry is rapidly growing alongside consumer acceptance of its products
  • Mounting veterinary costs and consumer awareness of industry products benefit the industry
  • Industry Analysis & Industry Trends

    Rapidly increasing consumer awareness and acceptance of industry offerings has benefited the Pet Insurance industry. In the next five years, the number of pets is anticipated to rise and homeownership rates are forecast to rebound. As a result, industry revenue will increase. However, an enhanced focus on technological platforms and gains from economies of scale will cause wages as a share of revenue to decline slowly.

    Industry Report - Industry Key Buyers Chapter

    The Pet Insurance industry operates with a high level of market share concentration. The top four companies are estimated to account for 92.6% of total industry revenue in 2017, representing a substantial increase from 78.1% in 2012. With only an estimated 17 companies operating in the industry in 2017, it is not surprising that the industry is highly concentrated. The industry's largest player, Nationwide Pet Insurance, has maintained its dominant share of the market over the five-year period, despite having lost a portion of the market over the five years to 2017.

    The industry's uptick in concentration is primarily the result of the rapid growth among some smaller pet insurers over the five-year period. For

    Additional Insights for the Pet Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pet Insurance Industry are

  • Possession of accurate information
  • Disciplined underwriting processes
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as External competition and Number of pets (cats and dogs) in the Pet Insurance industry impact industry performance..

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    Industry Products

    What is the Pet Insurance Industry?

    This industry underwrites insurance policies for pets and pays veterinary costs related to illness or injury.

    Industry Products
    Accident and illness dog policies
    Accident only dog policies
    Dog insurance policies with embedded wellness
    Accident and illness policies for cats and other pets
    Accident only policies for cats and other pets
    Cat and other pet insurance policies with embedded wellness
    Industry Activities
    Underwriting accident and illness pet insurance policies
    Underwriting accident only pet insurance policies
    Underwriting pet insurance policies with embedded wellness

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • External competition
  • Number of pets (cats and dogs)
  • Homeownership rate
  • Median age of population

  • Current Performance
  • Product acceptance
  • Distinction from the property and casualty market
  • Policy type and market trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Cost structure changes
  • Market share dominance
  • Table: Pet Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pet Insurance Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Accident and illness dog policies
  • Accident and illness policies for cats and other pets
  • Accident only dog policies
  • Dog insurance policies with embedded wellness
  • Accident only policies for cats and other pets
  • Cat and other pet insurance policies with embedded wellness
  • Chart: Pet Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 55 to 64
  • Consumers aged 45 to 54
  • Consumers aged 65 to 74
  • Consumers aged 35 to 44
  • Consumers aged 25 to 34
  • Consumers aged 75 and older
  • Consumers aged 25 and younger
  • Chart: Major Market Segmentation for the Pet Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Claims expenses
  • Wages
  • Marketing and other
  • Chart: Cost Structure Benchmarking – Sector vs Pet Insurance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pet Insurance Industry

  • Industry Globalization
    Major Companies
    Nationwide Pet InsuranceTrupanionPetplanASPCA Pet Health Insurance
  • Table: Nationwide Pet Insurance - financial performance
  • Table: Trupanion - financial performance
  • Table: Petplan - financial performance
  • Table: ASPCA Pet Health Insurance - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pet Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Pet Insurance Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of pets (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • A formal request to an insurance company asking for a payment based on the terms of the policy.
  • Loss Ratio
  • The percentage of premiums earned that were paid out as claims; it equals loss-incurred and loss-adjusted expenses (LLAE) divided by earned premiums.
  • Underwriting
  • The process where insurers assess the risks to insure and decide how much to charge for those risks.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pet Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pet Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pet Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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