A new update to the report from IBISWorld has shown that more animal owners are buying policies.
IBISWorld has updated the data in its report on the pet insurance industry and has pointed out that as a result of a combination of the increase in the costs associated with veterinary services, and the rising awareness among consumers with regards to coverage options, sales of these policies have been measurably growing.
Insurers offering these types of policies have been experiencing rising consumer awareness and acceptance.
The report showed that over the last five years, pet insurance companies have benefitted from this growth in interest among consumers, which has led them to make a purchase to cover their cats and dogs. The most recent data available from the Pet Food Institute and from the Department of Clinical Veterinary Science, in Sweden, 30 percent of dogs and cats have insurance policies. In the United Kingdom, about 23 percent of animals have coverage. However, in the U.S., only about 1 percent of domestic pets have this type of health policy.
That said, the pet insurance coverage in the United States continues to rise and the opportunity for insurers is promising.
Throughout the next five years, revenue within this part of the insurance industry is expected to increased by 10.9 percent per year, to the point that it will arrive at $721.0 million. In fact, in this year, alone, it has been predicted that the revenue for this coverage will rise by 12.6 percent.
Stephen Hoopes, an industry analyst from IBISWorld, “Pet insurers largely face the same regulatory trends as their broader property and casualty counterparts, given that pets are considered property in the view of government regulators. However, pet insurance risks and trends tend to be more similar to the health insurance market.”
For instance, the expense associated with receiving treatments in both of those markets has continued to rise at a pace that is greater than that of inflation. This is particularly true among veterinary care services, due to the increase in usage of this care as well as the massive advancements that have occurred in animal medicine. Pet insurance has, therefore, increased in appeal simply due to the fact that it helps to keep medical care for animals at an affordable level.