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Which Insurance Market Is Expected To Rise Significantly By 2023?

Agency Height

February 10, 2023 · 3 min read

Highlights:

Global pet insurance market on rise
Key factors driving the market
US pet insurance market outlook
Recent industry developments

According to a new analysis from Grand View Research, Inc., the worldwide pet insurance market is expected to reach USD 32.7 billion by 2030. From 2022 to 2030, the industry is predicted to grow at a lucrative CAGR of 16.7%.

The increase in pet ownership, pet investment, and rising pet humanization during the pandemic are some key factors expanding the insurance market.

North America remains the hotspot for pet insurance, with companies catering to a high number of owners and an increasingly aware public.

With the rise in the number of pet owners in the US, their expenses are also soaring. The American Pet Products Association (APPA) reports that over 70%, i.e., 151 million households report owning at least one animal companion who requires care from time to time or every day and they are spending an estimated $32 billion on vet treatments alone.

According to Petplan, the average cost of an unexpected visit to a veterinarian in the United States in 2018 was roughly $800 -1,500. With an insurance plan in place, this burden might be alleviated.

According to the 2021 State of the Industry Report from the North American Pet Health Insurance Association (NAPHIA), about 4.41 million pets were insured in North America by the end of 2021, and the pet health insurance marketplace grew by 27.7% over the previous year.

Trupanion and Chewy announced a partnership in December 2021 to provide an exclusive suite of pet wellness and health insurance policies to more than 20 million Chewy clients. Customers would benefit from wellness plans, preventive care, and comprehensive insurance policies for illness, accidents, and chronic ailments due to this strategic relationship. This collaboration broadened the range of healthcare services and goods available.

With a growing pet population and consumers willing to invest more in their pet’s health, insurance agents may be able to tap into this burgeoning industry. Recently, Warburg Pincus also made a major investment in the pet insurance marketplace by acquiring Petplan. This acquisition gave them access to capital and resources that will be used for their further operations.

If you have any insights into niche insurance markets that have high growth prospects in 2023 and beyond, please comment below!

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