It’s a dog’s life first, when it comes to insurance
New research from Zurich showing people are opting to insure their pets before themselves does not come as a surprise to Aquarium Software. The pet insurance technologist argues the figures simply demonstrate the way pet insurers have improved their performance, and that those offering human insurance need to do likewise. The research shows over nine million pets are insured, compared to just five and a half million with critical illness cover and three million with income protection. The survey found that people were deterred from buying personal insurances by a combination of price and not understanding the benefits – two things that until recently, the pet insurance market also struggled with.
“These latest findings don’t come as any surprise and are supported by our own research,” said Mark Colonnese, Director at Aquarium Software. “Pet insurers have embraced the latest technology, improved their approach to marketing and are now seeing the results, with premiums forecast to reach £1.6 billion by 2021. Unless those offering human cover adapt in similar ways, their sales figures are unlikely to improve.”
YouGov research commissioned by Aquarium revealed that 37 per cent said a renewal discount would be the best thing a pet insurer could do for them, while 36 per cent said the worst would be not to be paid on a valid claim. A paltry 11 per cent had private health insurance, compared to 38 per cent with pet insurance.
“Our own research suggests money is always a factor, but this is just one side of the coin,” added Mark. “The growth in pet insurance in recent years has been achieved by a combination of technology helping reduce premiums, insurers better communicating the benefits of the product, and vendors increasingly embracing changing consumer buying behaviours,” Colonnese added.
The fact there is no NHS for pets, coupled with escalating vets’ bills has led to pet insurance being perceived as a more valuable, cost effective product. Consumers remain in the dark, however, on how life insurance works; technology has a vital role to play in both changing consumer perceptions and influencing more practical considerations like premium price and perceived value,” Mark concluded.