Table of Contents
Executive Summary
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- The market
- Pet insurance market stalls in 2018…
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- Figure 1: Value of pet insurance gross written premiums, 2014-19
- … but is forecast to reach £1.6 billion by 2024
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- Figure 2: Forecast of pet insurance gross written premiums, 2014-24
- Ownership of multi-pet policies increases in 2018
- Pet ownership is becoming increasingly expensive
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- Figure 3: Average UK weekly household expenditure on pets, by component, 2014-18
- Claims ratio rises in 2018
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- Figure 4: Gross claims incurred and claims ratio, 2013-18
- Companies and brands
- Allianz continues to dominate the market
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- Figure 5: Estimated Market Share of pet insurance by GWP, 2018
- New technology is improving the claims process
- Petplan and MORETH>N drive advertising expenditure to its highest level for five years
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- Figure 6: Total above-the-line, online display and direct mail advertising expenditure on pet insurance, 2014/15-2018/19
- The consumer
- 60% of people own a pet
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- Figure 7: Ownership of pets, May 2019
- 77% own high-level or mid-level cover
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- Figure 8: Type of policy held, May 2019
- Accident and injury cover most appeals to pet insurance holders
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- Figure 9: Interest in basic accident and injury cover, by pet insurance ownership, May 2019
- Price comparison sites are the preferred source of information
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- Figure 10: Most influential sources used when choosing most recent pet insurance policy, May 2019
- Discounts and rewards can play a major role
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- Figure 11: Interest in pet insurance features and incentives, May 2019
- Pet health plans of most interest to the insured
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- Figure 12: Interest in pet health plan features, May 2019
- What we think
Issues and Insights
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- New technology will encourage younger pet owners to take out cover
- The facts
- The implications
- Bespoke policies and benefits for multi-pet owners can help boost sales
- The facts
- The implications
The Market – What You Need to Know
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- Pet insurance market stalls in 2018…
- …but is forecast to reach £1.6 billion by 2024
- Ownership of multi-pet policies increases in 2018
- Pet ownership is becoming increasingly expensive
- Claims ratio rises in 2018
Market Size and Forecast
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- Little growth in pet insurance premiums in 2018
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- Figure 13: Value of pet insurance gross written premiums, 2014-19
- More pets are insured despite a fall in the number of subscribers
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- Figure 14: Size of the pet insurance market, by exposure, subscribers and gross written premiums, 2014-18
- Pet insurance premiums forecast to reach £1.6 billion by 2024
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- Figure 15: Forecast of pet insurance gross written premiums, 2014-24
- Figure 16: Forecast of pet insurance gross written premiums, at current and constant prices, 2014-24
- Forecast methodology
Market Segmentation
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- Number of subscribers falls across the market
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- Figure 17: Number of pet insurance policy subscribers, by type of pet, 2014-18
- More pet owners are holding multi-pet policies
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- Figure 18: Exposure* and exposure to subscriber ratio**, 2014-18
- Dog policy premiums fall…
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- Figure 19: Pet insurance gross written premiums, by type of pet, 2014-18
- …as well as the average premium paid
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- Figure 20: Average pet insurance premium (based on exposure), by type of pet, 2014-18
Market Drivers
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- Household expenditure on pets continues to rise
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- Figure 21: Average UK weekly household expenditure on pets, by component, 2014-18
- Average claim value increases while the number of claims fall
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- Figure 22: Number of claims notified and average claim value, 2013-18
- Claims ratio rises in 2018
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- Figure 23: Gross written premiums, claims incurred and claims ratio, 2013-18
- Pet insurance complaints reach an all-time high
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- Figure 24: Number of pet insurance complaint enquiries, new cases and the percentage of cases upheld, 2015/15-2017/18
- FCA proposes greater transparency on claims data and complaints process
Companies and Brands – What You Need to Know
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- Allianz continues to dominate the market
- New technology is improving the claims process
- Petplan and MORETH>N drive advertising expenditure to its highest level for five years
Market Share
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- Allianz remains the major player in the market…
- …while RSA, Animal Friends and Direct Line together account for over 30% of the pet market
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- Figure 25: Estimated market share of pet insurance by GWP, 2018
Competitive Strategies and Innovation
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- Significant developments in online claim solutions…
- From major players
- And new challengers
- …as well as online veterinary consultations
- New telehealth services enter the market
- While pet health app Joii is hoping to shake up the pet health market
- Developments in pet activity trackers
- Through fitness trackers
- And new collaborations
- New technology can help treat pre-existing conditions
Advertising and Marketing Activity
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- Advertising expenditure at its highest level for five years…
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- Figure 26: Total above-the-line, online display and direct mail advertising expenditure on pet insurance, 2014/15-2018/19
- …driven by Petplan and MORETH>N
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- Figure 27: Top 10 pet insurance advertisers using above-the-line, online display and direct mail channels, 2016/17-2018/19
- TV expenditure accounts for the vast majority of advertising expenditure
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- Figure 28: Total above-the-line, online display and direct mail advertising expenditure on pet insurance, by media type, 2018/19
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 60% of people own a pet
- 77% own high-level or mid-level cover
- Accident and injury cover most appeals to pet insurance holders
- PCWS are top source of information
- Discounts and rewards can play a major role
- Pet health plans of most interest to the insured
Pet Ownership
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- Dog ownership is rising
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- Figure 29: Ownership of pets, May 2019
- Multi-cat owners are more common
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- Figure 30: Number of dogs or cats owned, May 2019
Pet Insurance Penetration
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- Over 40% say they have pet insurance
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- Figure 31: Penetration of pet insurance, by type of pet, May 2019
- Over 55% of multi-cat owners do not own insurance
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- Figure 32: Penetration of pet insurance among multi-pet owners, May 2019
Level of Cover Held
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- Ownership of high-level and mid-level cover is equally split
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- Figure 33: Type of policy held, May 2019
- Multi-pet owners need flexible options
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- Figure 34: Type of policy held, by repertoire of number of different types of pets insurance is owned for, May 2019
Interest in Accident and Injury Cover
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- Accident and Injury cover most appeals to pet insurance holders
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- Figure 35: Interest in basic accident and injury cover, by pet insurance ownership, May 2019
- Millennials and owners of younger pets are most interested
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- Figure 36: Interest in basic accident and injury cover, by pet life stage, May 2019
Influential Sources when Choosing a Pet Insurance
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- PCWs are the most influential source
- Vets play a limited role in influencing choice of insurer
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- Figure 37: Most influential sources used when choosing most recent pet insurance policy, May 2019
- Social media channels more likely to influence those with high-level cover
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- Figure 38: Most influential sources used when choosing most recent pet insurance policy, by level of cover held, May 2019
Interest in Pet Insurance Features and Incentives
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- Discounts on pet medication hold wide appeal
- Millennials are most likely to find pet fitness trackers appealing…
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- Figure 39: Interest in Pet Insurance Features and Incentives, May 2019
- …and those interested in accident and injury cover
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- Figure 40: Interest in Pet Insurance Features and Incentives, by interest in basic accident and injury cover, May 2019
- Rewards and discounts are most appealing to older pet owners with cover
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- Figure 41: Pet Insurance – CHAID – Tree output, May 2019
- Discounts on pet medication and 24/7 online pet consultations appeal to multi-pet owners
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- Figure 42: Interest in pet insurance features and incentives, by single pet and multi-pet owners, May 2019
Interest in Pet Health Plan Features
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- Pet health plans are of most interest to those with pet insurance
- Significant interest in emergency pet health services
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- Figure 43: Interest in pet health plan features, May 2019
- Opportunity for providers to build pet specific plans
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- Figure 44: Interest in pet health plan features, by pet life stage, May 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Product definitions
- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
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- Figure 45: Pet Insurance – CHAID – Table output, May 2019
Appendix – Market Size and Forecast
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- Figure 46: Forecast of the value of pet insurance gross written premiums, 2019-14
- Forecast methodology
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