The UK pet insurance market is expected to grow at a CAGR of around 6.7% during the forecast period of 2023-2028 and was valued at around US$ 2.2 billion in 2023.
The rising costs of veterinary treatment are one of the key drivers of the UK pet insurance market. As the cost of veterinary care continues to rise, pet owners are increasingly choosing pet insurance to help cover the cost of unexpected medical expenses which is also pocket-friendly.
According to a recent survey by RationalStat, the average cost of veterinary treatment in the UK has increased by 20% in the past five years. This increase is being driven by a number of factors, including the rising cost of medications, the increasing complexity of veterinary procedures, and the rising demand for specialized care for pets and specialized breeds. The rising cost of veterinary treatment is a major financial burden for many pet owners in the UK. A recent study found that the average pet owner in the UK spends US$ 1120 per year on veterinary care.
High spending on Pet Care and Insurance, as a result of the rise in Per Capita Income
Pet insurance can help to offset the cost of veterinary treatment. Pet insurance policies typically cover a range of medical expenses, including accidents, illnesses, and routine care. The cost of pet insurance varies depending on the type of policy, the level of coverage, and the age and breed of the pet.
The rising costs of veterinary treatment are expected to continue to drive the sales of UK pet insurance in the coming years. As the cost of veterinary care continues to rise, pet owners will increasingly look to pet insurance to help cover the cost of unexpected medical expenses.
Overview of the UK Pet Insurance Market: Hassle-Free Claims to increase the adoption of Pet Insurance
The pet insurance market in the UK has experienced tremendous expansion. This can be ascribed to a number of things, including the emergent trend of pet adoption and the development of the economy in the country. Furthermore, an increase in awareness regarding veterinary health and improving veterinary healthcare infrastructure are other drivers of the UK pet insurance market in the region.
According to the Department of Clinical Veterinary Science and the Pet Food Institute, 23.0% of pets in the U.K. and 30.0% of pets in Sweden were covered by pet insurance policies by 2017 and this penetration was anticipated to increase over time. Key market players such as Petplanare headquartered in the UK while DFV is headquartered in Germany. These companies continuously implement various strategic initiatives to increase their market share, thus contributing to regional growth.
Market Structure and Competitive Landscape
The UK pet insurance market is fragmented in nature with the presence of various players operating in the market.
Some of the prominent players operating in the pet insurance market include Agria Pet Insurance, Petplan Limited, Royal & Sun Alliance Insurance Company of Canada, Inc., Petsecure, Direct Line Insurance Group Plc, Healthy Pets Insurance, RSPCA, ManyPets, Tedaisy Insurance, Clements Worldwide, NSM Insurance Group, AGILA, Hartville Group, Protectapet, and Pethealth Inc among others.
These players are majorly regional players and maintain a healthy competitive environment. Following are some of the expansions of the pet insurance market:
- In November 2022, Pet insurance provider Trupanion entered into an agreement to acquire Royal Blue s.r.o., the parent company of PetExpert. This acquisition will be the second in Europe for Trupanion, following the acquisition of Smart Paws.
Key Market Segmentation
RationalStat has segmented the UK pet insurance market based on policy type, coverage, end user, and sales channel.
- By Policy Type
- Accident Only
- Accident & Illness
- By Coverage
- Diagnostic exam fees
- Prescription medications (Rx)
- Prescription foods and supplements
- Congenital conditions (e.g., heart disease, cataracts)
- Hereditary conditions (e.g., diabetes, thyroid disease)
- Dental illnesses (e.g., extractions, gingivitis)
- Boarding fees in emergency situations
- Loss-and-found pet search expenses
- Working-pet coverage (police dogs, therapy pets)
- Recovery and complementary care
- Behavioral modification
- Physical therapy
- By End User
- Exotic Pet
- By Sales Channel
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
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Frequently Asked Questions (FAQs)
The UK pet insurance market is anticipated to grow at a CAGR of approximately 5.5% during the forecast period 2023-2028.
The UK pet insurance market is estimated at US$ 2.2 billion in 2023.
Increasing adoption of pet insurance due to rising veterinary treatment costs is anticipated to drive the UK pet insurance market growth.
Leading Companies operating in the UK pet insurance market include Agria Pet Insurance, Petplan Limited, Royal & Sun Alliance Insurance Company of Canada, Inc., Petsecure, Direct Line Insurance Group Plc, Healthy Pets Insurance, RSPCA, ManyPets, Tedaisy Insurance, Clements Worldwide, NSM Insurance Group, AGILA, Hartville Group, Protectapet, and Pethealth Inc among others.