The market had experienced a growth rate of 14 percent per year between 2016 through 2021.
The global pet insurance market is expected to reach a rate of growth that will bring its value to $38.8 billion by the close of 2030, according to a recent Future Market Insights (FMI) study.
The market will demonstrate a consistent rise at a compound annual growth rate of 11 percent.
According to the report, the compound annual growth rate (CAGR) of 11 percent from 2022 through 2030. The report also indicated that the substantial growth in cat and dog ownership, along with the increase in pet insurance awareness and associated medical benefits of owning an animal will spur the market’s rapid growth.
The FMI study was a comprehensive market overview. It includes a look into key growth drivers, opportunities, restraints, and leading trends. FMI employed its own research strategy to provide the best possible accuracy in analyzing the market.
Among the data provided in the report included the projected $7.8 billion value of the market in 2022. Across the length of the forecast period of the report, the market is expected to show a steady growth pace. North America remains the dominant region in the world for this market. That said, Latin America is also moving ahead as a key market due to the high level of cat and dog ownership in the region.
Dog and cat ownership is important because it represents the highest value share in pet insurance.
The preferred animal coverage type for owners was shown to be the “accident & illness” coverage option. It is likely, said the report, that insurers will place a greater focus on offering products within this market as they continue to take off.
Companion animals became an important decision for many individuals and families over the past few years, particularly as people aimed to overcome boredom and loneliness throughout the lockdowns associated with the pandemic. Insurers typically offer a range of different plan tiers and options, depending on the animals they are covering.
That said, the high cost of pet insurance premiums and a lack of consumer awareness – in addition to government regulation limits for market growth – have been keeping coverage down. That said, with recent marketing strategies in the industry, including online marketing, and in pet stores, veterinary clinics, rescues and shelter organizations, an improved understanding of coverage has been spreading.