Pet Insurance Consumer Awareness and Understanding Promising Future for Pet
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According to Pet Insurance Statistics, Pet insurance is a type of insurance coverage designed to help pet owners manage the costs associated with veterinary care for their pets. It provides financial protection in case of unexpected accidents, illnesses, or injuries to pets.
Just like health insurance for humans, pet insurance policies come with various coverage options, deductibles, and premium rates.
Table of Contents
- The global pet insurance market size is expected to be worth around USD 19.15 Bn by 2032 from USD 9.3 Bn in 2022, growing at a CAGR of 11.90% during the forecast period from 2022 to 2032.
- In the United States, approximately 2.7 million pets were insured in 2020, representing around 3% of the total pet population.
- The average annual premium for pet insurance in the United States is around $566 for dogs and $354 for cats.
- According to a survey, 80% of pet owners who filed a claim with their insurance provider were satisfied with the reimbursement process.
- Around 33% of pet owners in the United Kingdom have insurance, while in Sweden, the penetration rate is as high as 50%.
Key Statistics in the Pet Insurance Industry
- At the end of 2021, the United States had 3.9 million insured pets, marking a significant 28% increase compared to 2020.
- The pet insurance industry in the United States experienced impressive growth over the past four years, more than doubling in size and generating sales of over $2.83 billion by the end of 2021.
- In 1982, the first dog to ever be insured in the United States was the famous TV character Lassie.
- The COVID-19 pandemic played a role in the growth of the pet industry, with a 26% increase in the sector from 2019 to 2020.
- The pet insurance marketplace in the United States consists of 25 companies.
- In the United States, over half of households, which translates to 70% or 90.5 million homes, own a pet.
- Pet insurance premiums in Canada reached a total of $313.4 million in 2021.
- On average, insurance premiums amount to $585.40 per year for dogs and $349.94 for cats.
- California has the highest number of insured pets in the United States, accounting for 19.2% of the total.
- California, New York, Florida, New Jersey, and Texas together represent over 45% of the insurance policies in the United States.
- In the United States, dogs account for 82% of insured pets, while cats make up the remaining 18%.
- The top five most common pet insurance claims in 2021 were related to skin issues, gastrointestinal issues, ear infections, seizures, and urinary tract infections.
- Every six seconds, a pet owner receives a vet bill exceeding $1,000.
Pet Insurance Penetration and Awareness
- In the United States, approximately 3% of the total pet population was insured in 2020.
- Around 33% of pet owners in the United Kingdom have pet insurance.
- In Sweden, the penetration rate for insurance is as high as 50%.
- According to a survey conducted in the United States, around 68% of pet owners were aware of insurance in 2020.
- In the United Kingdom, a survey revealed that approximately 78% of pet owners were aware of insurance and its benefits.
- A study conducted in Australia found that 32% of pet owners had a good understanding of pet insurance, while 45% had some understanding but were not fully informed.
Pet Ownership Demographics
- Millennials make up 32% of all pet owners. This means that a significant portion of the pet ownership population belongs to the millennial generation.
- Boomers account for 27% of pet owners. Despite being a slightly smaller percentage than millennials, boomers still represent a significant portion of the pet-owning demographic.
- Gen X comprises 24% of all pet owners. This generation, sandwiched between millennials and boomers, also holds a substantial share of the pet ownership population. (Source: Money)
- Dogs account for 38.4% of pet ownership, making them the most popular choice among pet owners.
- Cats are the second most commonly owned pets, with a percentage of 25.4%.
- Birds represent a smaller portion of the pet population, with only 2.8% of households owning them as pets.
Pet Ownership, Veterinary Spending, and Pet Insurance Trends
- 70% of households in the U.S., which is approximately 151.1 million households, reported owning a pet.
- Estimated spending on vet care and products (excluding food and treats) in 2021 is $32.3 billion, up from $31.4 billion in 2020.
- Consumer spending on pet medical care has consistently risen every year since 2001.
- The total number of pets insured in 2022 reached 5.3 million, up from 3.1 million in 2020.
- Dogs make up 80.1% of insured pets, while cats make up 19.9%.
- As the lifespans of companion animals increase, veterinary care costs are likely to rise for consumers.
- In the U.S., 92.8% of insured pets are covered by Accident and illness plans or Embedded Wellness plans, 7% have Endorsements (such as wellness or cancer treatments), and the remaining 0.2% have Accident plans.
Pet Insurance Statistics by Country
The United States
- In the United States, approximately 2% of the estimated 87.9 million dogs in the nation are insured, totaling around 3.1 million insured pets.
- The overall premium volume for insurance in the US is $1.56 billion.
- The pet insurance industry in the US has grown at an average annual rate of 22.1% over the last five years.
- In Canada, there are 352,631 insured pets as of 2020, with dogs accounting for 75.2% of the total (265,179).
- The number of insured canines in Canada has increased by 13% annually, which is the highest growth rate recorded since 2018.
- The total number of insured pets in North America, including both the US and Canada, is 3.45 million.
The United Kingdom
- In the United Kingdom, it is estimated that over 45% of households have a pet, with a total of 8.1 million dogs and 8 million cats.
- There are 4.8 million insured pets in the UK, representing a penetration rate of about 25%.
- Among the insured pets, there are 1.3 million cats, 2.8 million dogs, and 700,000 other species covered by insurance.
- Pet insurance claims in the UK have increased by 75% over the past ten years, resulting in record-breaking payouts. British pet insurance firms pay out approximately 2.2 million GBP in claims daily.
- In Sweden, there are over a million pet dogs, and about 90% of them are insured.
- The average annual cost of dog insurance in Sweden is $536, and insurance has been available in the country since 1924.
- Sweden has a strong culture of animal care, and animals are considered part of the family.
- Australia has one of the highest pet ownership rates globally, with 62% of households having a pet, totaling 29 million animals.
- Pet insurance spending in Australia has increased by 56% over the previous three years.
- However, only 7.1% of the 5.4 million owned dogs in Australia, which is approximately 383,400 dogs, are covered by pet insurance.
He has been helping in business of varied scales, with key strategic decisions. He is a specialist in healthcare, medical devices, and life-science, and has accurately predicted the trends in the market. Anurag is a fervent traveller, and is passionate in exploring untouched places and locations. In his free time, he loves to introspect and plan ahead.
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