It’s official: pet insurance is booming
With UK pet insurance premiums forecast to grow from £976 million in 2015 to £1.6 billion by 2021, Aquarium Software says the projections are in line with what the pet insurance technologist is seeing, too. The number of ‘pet’ projects Aquarium has in the pipeline are testament to an industry that’s looking as fit as a butcher’s dog. A Financial Times report concluded 80 brands now sell pet insurance, a 15 per cent rise on a decade ago and Aquarium’s own research shows 69 per cent of people say pets are as important to the family as the humans. This, coupled with expensive new treatments, is driving demand and fuelling new business.
“The latest research reinforces what we are seeing in the marketplace,” said Mark Colonnese, Sales and Marketing Director at Aquarium Software. “Demand is up and we are seeing a spike in orders for our insurance technology platform from insurers aiming to improve their pet proposition, or intending to bring one to market.”
Colonnese sees the pet insurance surge through the prism of the market’s untapped potential. New premiums up; new policy providers up and according to the Association of British Insurers, pet insurers paid out £706 million in 2016, up seven per cent on the 2015. More than two fifths (42 per cent) of all pet owners have never had insurance and 72 per cent do not currently have it, leaving plenty of scope for new business opportunity.
“39 per cent of policyholders who made a claim said service was good; whilst only seven per cent reported poor service,” added Colonnese. “Insurers just need to shout about the benefits. With the right business model and systems, pet insurance is a profitable line of business. What’s more, it is a very “sticky” product, for building enduring relationships with customers with all the attendant opportunities for cross and upsell that presents.”
Demand for sophisticated pet insurance software is seeing Aquarium enjoying a boom of its own, with operations expanded globally, servicing the UK, US, and Canadian markets, as well as other emerging territories.
“We feel our commitment to the pet insurance sector has been vindicated,” added Colonnese. “As pet parents ourselves, it is a pleasure to engage in a market keeping pet health and treatment affordable. We are actively working on number of major new deployments and have several more in the pipeline.”