Massive pawtential for pet insurance in 2018
The Pet Insurance industry has the opportunity to tap into a market where 42 percent of pet parents have never had cover. That’s the view of Aquarium Software, as its latest YouGov findings reveal scope to grow the sector in 2018, if the industry can woo what amounts to a lost two fifths of the market. The figures show a fifth of pet owners who previously had pet insurance have let it lapse and not re-insured, reinforcing the view that the industry needs a charm offensive to turn these numbers around.
Latest data challenges the historical myth of cost acting as a barrier to greater uptake of policies, as the average pet insurance claim soars above the £750 mark for the first time, at around 3 times the price of the average premium. “There is huge potential to grow the pet insurance market in 2018, but we have to start pointing out the positives and explaining the benefits properly,” said Aquarium Software Director, Mark Colonnese. “Two fifths of claimants reported their provider as good, with only seven percent saying service was poor, so there really is a positive story to tell,” said Mark. “This could lead those who may have strayed, back into the pet insurance fold,” Colonnese added.
As specialist software suppliers to the niche general insurance sector worldwide, Aquarium is engaged in discovering what gets tails up when it comes to pet insurance and what leads to folding ears in frustration. While financial persuasion matters (36 percent say non-payment of a valid claim would be the worst thing an insurer could do), it is clear customer journey does too, as 12 percent say accurate and timely information would impress them most. “Money may make the business world go round, but beyond that, people will pay a fair price in return for a fair service,” said Colonnese. “Technology is bringing prices down in real terms, helping to maintain and improve levels of service and with volumes up 17 percent in the last two years, the future looks set to be reasonably fair. The next step must be to convince the undecided that pet insurance is worth it. People do not make purchasing decisions on figures alone, and it’s time to spread the good news to the unconvinced, in new and creative ways,” Colonnese concluded.