Over the last five years, the sector has expanded despite the economic downturn.
IBISWorld has now released its latest U.S. Industry Market Research Report, which provides details as to the progress of the pet insurance sector over the last five years.
What it has indicated is that there has been notable growth among insurers and consumers.
Over the last five years, according to the report, the pet insurance industry grew very rapidly, continuing its expansion regardless of the direction of the economy as a whole. It is a clear reflection of the increasing feeling among animal owners that their furry friends are members of the family. In response, insurers started to broaden the options that were available and increased customization of plans.
This allowed pet insurance to be accessible to owners with different incomes and demands.
These pet insurance trends have been driving the growth throughout the past five years and the report forecasted that it will continue into the next five years, as well. The positive attitude toward medical care for animals has shown no indication that it will be stopping at any time soon. Therefore, in order to help to decrease the risk of having to face massive vet bills for a situation in which an animal becomes sick or injured, coverage is now being regularly purchased.
Other factors were also identified as important to the growth of pet insurance.
The report also pointed out that per capita disposable incomes had experienced a recovery from their lowest points in the recession. Furthermore, a larger number of households were willing to include the coverage as a part of their monthly budgets. Though there was a slowing in revenue growth, it didn’t seem to have an impact on this industry.
The pet insurance options that started to become available allowed people to be able to afford coverage even when their disposable income was still on the tight side. It balanced well with their desire to keep financial risk to a minimum because they didn’t have a great deal of extra money to spare in case an emergency should occur.
An increasing number of insurers also started to make preventive pet care as part of the coverage, such as for neutering or vaccinations. This coverage was previously unavailable in the pet insurance industry, but has made the products far more appealing to consumers.