Global pet insurance market set to double in five years
As news hits that the annual growth rate of the global pet insurance market will reach 14.4 per cent over the next five years, from $3200 million in 2017 to $7170 million in 2023, technology specialist Aquarium Software says technology will be a key driver and could even help drive this growth further. This news comes hot on the heels of an announcement showing that the number of pet payouts is at record levels, with the UK industry paying out £2 million a day (ABI).
The figures suggest the security of insuring your pet is proving its worth for those with insurance, yet more must be done to persuade the non-insured that the figures do not lie.
The US market in particular presents great opportunities for insurers and technologists alike.
The US has a little over two per cent penetration of pet insurance, with just 2,000,000 pets insured and an estimated 98,000,000 uninsured pets needing cover.
This data combined with research upon research about the immensely strong emotional bond between pet and pet parent, suggests a rosy future for the pet insurance market, according to Aquarium.
“Multiple independent data sources are telling us there is a great opportunity in pet insurance, especially in the States,” said Aquarium Software Director, Mark Colonnese.
“Technology in the pet insurance world is bringing faster claims, improving the customer journey and cutting opportunities for fraud, all of which leads to more reason for diligent pet owners to insure their beloved pets to cover against something unexpected going wrong,” added Mark.
“We can provide the technology platforms and apps, but the wider challenge for the industry remains the refusal of some consumers to see pet insurance as an investment rather than a cost - despite ever rising vet fees and the obvious benefits of insuring.
News that the pet insurance market is growing is fantastic; as an industry we can still do more to educate consumers and help drive down premiums using technology innovation.
Then we may be able to look forward to an even more prosperous future for the pet insurance market than this latest data suggests,” concluded Mark.