Table of Contents
Issues in the Market
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- Key issues in the market
- Note on consumer research
- Abbreviations
Future Opportunities
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- Claims transparency may provide an opportunity to build trust
- Increasing policy take-up among pet-owning families
- Scope to expand pet insurance ownership among cat owners
- Expanding the appeal of multi-pet insurance policies
Market in Brief
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- Pet insurance market continues to grow
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- Figure 1: Estimated value of the pet insurance market, by GWP, 2000-08
- Nearly three in ten pet owners have insurance
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- Figure 2: Proportion of pet owners who have insurance to cover the cost of treatment, November 2009
- Specialist providers account for 45% of policies
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- Figure 3: Channels used to buy pet insurance, November 2007 and November 2009
- Other consumer findings
- Allianz remains the largest pet insurance underwriter
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- Figure 4: Pet insurance underwriter market share, based on GWP from 2008
- Advertising expenditure increases sharply in 2008/09
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- Figure 5: Topline advertising expenditure in the pet insurance market, 2006-07-2008-09
Internal Market Environment
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- Key points
- Dogs and cats are the most widely-owned pets
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- Figure 6: Top pets in the UK, 2009
- Dog population has grown faster over the last five years
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- Figure 7: Ownership of dogs and cats, 2005-09
- Veterinary and health costs account for a third of spending on pets
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- Figure 8: Proportional annual household spending on pets, 2007
- Veterinary and health costs increase significantly
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- Figure 9: Annual household spending on pets, 2001/02-2007
- Rising veterinary costs
- Fears that low-cost policies could damage the sector
Broader Market Environment
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- Key points
- Consumers adopt a more conservative approach to finances
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- Figure 10: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14
- Implications for the pet insurance market
- Population trends will have implications for pet ownership
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- Figure 11: UK population trends, 2004-14
- No growth in the main pet-owning lifestage groups
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- Figure 12: Adult population trends, by lifestage, 2003-14
- Trend for smaller households will affect pet ownership
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- Figure 13: UK households, by size, 2005-14
Competitive Context
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- Key points
- Alternatives to pet insurance
- Self-insurance
- Animal charities
Strengths and Weaknesses in the Market
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- Figure 14: Strengths and weaknesses of the pet insurance market, January 2010
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Who’s Innovating?
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- Key points
- Moving beyond the basics
- Developments within niche pet insurance sectors
- Pet insurance for tenants
- Online channels help to improve claims handling
Trade Perspective
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- Participating companies
- Recession leads to increased price sensitivity but sales remain strong
- Pet insurance market will continue to grow
- Evolution in distribution
- Claims inflation represents a major challenge for the future
- Future developments and innovations
Market Size and Forecast
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- Key points
- Pet insurance market continues to show year-on-year growth
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- Figure 15: Estimated value of the pet insurance market, by GWP, 2000-09
- Pet insurance ownership has increased annually
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- Figure 16: Have pet insurance, 2004-09
- Forecast
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- Figure 17: Forecast of the value of the pet insurance market, by GWP, 2004-14
Market Share
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- Key points
- Allianz is top dog in UK pet insurance market
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- Figure 18: Pet insurance underwriter market share, based on GWP from 2008
- RBS and RSA see market share increase
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- Figure 19: Overview of proportional market share for top pet insurance underwriters, 2006-08
Companies and Products
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- New entrants – a summary
- About Thornside
- Major players – company profiles
- Agria Pet Insurance
- Allianz Insurance plc
- AXA Insurance
- Equine and Livestock Insurance
- Royal Bank of Scotland Insurance
- Royal & Sun Alliance
Brand Elements
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- Key points
- Brand map
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- Figure 20: Attitudes towards and usage of pet insurance brands, December 2009
- Brand qualities of pet insurance brands
- Competence crucial, but genuine care a serious issue
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- Figure 21: Personalities of various pet insurance brands, December 2009
- Experience of pet insurance brands
- Petplan holds market leadership, but Tesco sees growth
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- Figure 22: Consumer usage of various pet insurance brands, December 2009
- Brand consideration for pet insurance brands
- Petplan and Tesco most considered
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- Figure 23: Consideration of various pet insurance brands, December 2009
- Brand satisfaction for pet insurance brands
- Tesco best all-rounder
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- Figure 24: Satisfaction with various pet insurance brands, December 2009
- Brand commitment to pet insurance brands
- Tesco heading for dominance
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- Figure 25: Commitment to various pet insurance brands, December 2009
- Brand intentions for pet insurance brands
- Tesco has top loyalty
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- Figure 26: Future usage intentions for various pet insurance brands, December 2009
- Brand recommendation for pet insurance brands
- Tesco most recommended, MORE TH>N much less than
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- Figure 27: Recommendation of various pet insurance brands, December 2009
- Tesco
- What the consumer thinks
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- Figure 28: Attitudes towards the Tesco brand, December 2009
- Halifax
- What the consumer thinks
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- Figure 29: Attitudes towards the Halifax brand, December 2009
- Direct Line
- What the consumer thinks
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- Figure 30: Attitudes towards the Direct Line brand, December 2009
- Sainsbury’s
- What the consumer thinks
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- Figure 31: Attitudes towards the Sainsbury’s brand, December 2009
- Petplan
- What the consumer thinks
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- Figure 32: Attitudes towards the Petplan brand, December 2009
Brand Communication and Promotion
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- Key points
- Adspend on pet insurance increases by 67% over the last three years
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- Figure 33: Topline advertising expenditure in the pet insurance market, 2006-07-2008-09
- Sainsbury’s was the top pet insurance advertiser in 2008/09
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- Figure 34: Spend by company (top 20) in the pet insurance market from September 2006-August 2009
- TV and Direct Mail advertising dominates pet insurance advertising
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- Figure 35: Spend by media type in the pet insurance market from September 2006-August 2009
Channels to Market
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- Key points
- Specialist providers account for 45% of all pet insurance policies
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- Figure 36: Channels used to buy pet insurance, November 2009
- Aggregators are preferred channel for general insurance products
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- Figure 37: Methods used to arrange main general insurance products (buildings, contents, car and annial travel cover), September 2009
- Aggregators move into pet insurance market
The Consumer – Pet Ownership
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- Key points
- Two fifths of adults live in a household with at least one pet
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- Figure 38: Pets in household, November 2009
- Children are a catalyst for pet ownership
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- Figure 39: Pet ownership, by gender, age, lifestage group, marital status and children in household, November 2009
- Pet insurance services for the over 65s
- Pet ownership varies by socio-economic group
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- Figure 40: Pet ownership, by socio-economic group, housheold income, working status and household tenure, November 2009
- Regional differences in pet ownership
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- Figure 41: Pet ownership by newspaper readership, internet access, internet frequency, education, region and supermarket used, November 2009
- More than a third of pet owners have more than one cat or dog
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- Figure 42: Pets ownership, by the number of dogs and cats in household, November 2009
The Consumer – Pet Insurance Ownership and Channels Used
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- Key points
- Almost 30% of pet owners have pet insurance
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- Figure 43: Pet insurance ownership, November 2009
- More than two fifths of dog owners have pet insurance cover
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- Figure 44: Pet insurance ownership, by most popular pets in household, November 2009
- Pet insurance ownership increases sharply among those with more than one pet
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- Figure 45: Pet insurance ownership, by the number of dogs and cats in household, November 2009
- Third agers are more likely to have pet insurance
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- Figure 46: Pet insurance ownership, by gender, age, lifestage, marital status and children in household, November 2009
- Ownership is lower among less affluent pet owners
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- Figure 47: Pet insurance ownership, by socio-economic group, household income, working status and household tenure, November 2009
- Broadsheet readers buying into pet insurance
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- Figure 48: Pet insurance ownership, by newspaper readership, internet access, intenet frequency, education, region and sumpemarket used, November 2009
- Scope to expand pet insurance among young families
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- Figure 49: Pet owners without pet insurance, by gender, age, lifestage, marital status and children in household, November 2009
- The rental market may offer opportunities
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- Figure 50: Pet owners without pet insurance, by socio-economic group, household income, working status and household tenure, November 2009
- Low-cost policies should be marketed through offline channels
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- Figure 51: Pet owners without pet insurance, by newspaper readership, internet access, intenet frequency, education, region and supermarket used, November 2009
The Consumer – Attitudes Towards Pet Insurance and Targeting Opportunities
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- Key points
- Almost one in three pet insurance policyholders have made a claim
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- Figure 52: Attitudes towards and statements about pet insurance, November 2009
- Aggregator usage is likely to increase further
- Opportunities to develop multi-pet policies
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- Figure 53: Attitudes towards and statements about pet insurance, by number of dogs and cats in households, November 2009
- Improving awareness of policy benefits among non-policyholders
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- Figure 54: Factors most likely to persuade or have persuaded pet owners to take out pet insurance by pet insurance to cover the cost of treatment, November 2009
- Different pets bring a different perspective
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- Figure 55: Factors most likely to persuade or have persuaded pet owners to take out pet insurance, by most popular pets in household, November 2009
- Key demographic factors in persuading people to take out pet insurance
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- Figure 56: Key demographics relating to the factors most likely to persuade or have persuaded pet owners to take out pet insurance, November 2009
- Lifetime cover is only really appreciated by the most engaged pet owners
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- Figure 57: Factors most likely to persuade or have persuaded pet owners to take out pet insurance, by repertoire of factors most persuaded to take pet insurance, November 2009
- An appetite for multi-pet discounts
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- Figure 58: Factors most likely to persuade or have persuaded pet owners to take out pet insurance, by number of dogs and cats in household, November 2009
- Target group analysis
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- Figure 59: Pet insurance target groups, November 2009
- Pet insurance advocates
- Cost-conscious pet owners
- Disengaged pet owners
Appendix – The Consumer – Pet Ownership
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- Figure 60: Pet owners, by gender, age, lifestage, marital status and children in household, November 2009
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- Figure 61: Pet owners, by socio-economic group, housheold income, working status and household tenure, November 2009
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- Figure 62: Pet owners, by newspaper readership, internet access, internet frequency, education, region and supermarket used, November 2009
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Appendix – The Consumer – Attitudes Towards Pet Insurance and Targeting Opportunities
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- Figure 63: Pet insurance ownership, by target groups, November 2009
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- Figure 64: Factors most likely to persuade or have persuaded pet owners to take out pet insurance, by target groups, November 2009
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- Figure 65: Pets in household by target groups, November 2009
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- Figure 66: Pet insurance target groups, by demographics, November 2009
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