After a disappointing year in 2013, the pet insurance market grew strongly in 2014 and is expected to do so again in 2015. Mintel forecasts that the total value of gross written premiums will reach £988 million by the end of the year and £1.5 billion by 2020.
Such strong growth is driven by policyholders who are already convinced of the benefits of the product and more likely to increase their coverage level (where possible) than they are to cancel. In addition, the market remains under-penetrated, with just 44% of pet owners currently owning an insurance policy.
However, pet insurers face a struggle to capitalise on this growth opportunity as rising pet insurance premiums leave many pet owners questioning the value of the product. This unresolved issue represents one of the central themes of Mintel’s report, which provides an overview of the market’s size and composition, its strengths and weaknesses, recent innovation and promotional activity. In addition, Mintel’s online consumer survey offers insight into the attitudes of pet owners towards pet insurance, pet insurers and interest levels amongst pet owners in alternative products to comprehensive pet insurance policies.
Abbreviations
| ABI | Association of British Insurers |
| CPI | Consumer Price Index |
| E&L | Equine and Livestock |
| FCA | Financial Conduct Authority |
| GWP | Gross Written Premium |
| NMR | Nielsen Media Research. For further information, please contact nmr.communication@nielsenmedia.co.uk |
| M&S | Marks and Spencer |
| ONS | Office for National Statistics |
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