Pet insurance market to surge 31% in CAGR by 2027

The dog segment is anticipated to witness significant growth.

The global pet insurance market is projected to experience significant growth, estimated at $19.9b between 2022 and 2027, with a CAGR of 31.41% during the forecast period, according to Technavio.

The market is segmented based on pet type (dogs, cats, and others) and insurance type (accidents and illness, accidents only, and others). 

The dog segment is anticipated to witness significant growth, driven by the increasing adoption of pet dogs and the high cost of treatments for various dog-related diseases.

Rising concerns over pet well-being are driving market growth, as pet owners become more conscious of their pets' health. 

Common illnesses among pets, along with incidents like thefts and accidents, are prompting pet owners to opt for insurance coverage to manage pet care expenses.

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A notable trend in the market is the growing inclination toward premiumization in pet care services. However, low adoption rates of pet insurance in developing countries pose a challenge to market growth.

The pet insurance market's expansion is fueled by factors such as increasing pet ownership, rising awareness about veterinary care's importance, and the humanization of pets. 

The COVID-19 pandemic has further accelerated this trend, leading to a surge in pet adoptions and strengthening the bond between humans and animals.

The analysts of the report said collaboration between insurers, veterinary healthcare facilities, and animal health companies is crucial for enhancing customer experience and streamlining claims processing.