Pet Insurance Spending Shatters 1.3 Billion, Pet Business World UK’s Pet Trade News & Events
‘UK Pet Insurance Market 2021: Consumer Research Report’ has been added to ResearchAndMarkets.com offering
In 2021, 50% of pet owners have insurance, which is higher than the percentage in 2019. The increase in the number of pet and insurance owners has likely been spurred by the covid pandemic -19.
But the pandemic has been a double-edged sword for pet insurance because, on the one hand, it has increased the percentage of households with pets but, on the other hand, it has reduced spending by consumption in veterinary services, making insurance less relevant.
It also reduced the incomes of some consumers, making it more difficult to purchase insurance and shutting down or restricting the opening of key retail channels for pet insurance.
In 2020, the publisher estimates, gross written premiums reached over £ 1.3 billion and the market is expected to grow 38% between 2020 and 2025.
Each year, more than seven in 10 pet policyholders are existing policyholders, and their choice comes down to either renewing with an existing provider (more than half renewed each year) or switching from one provider to another. (about one in five changes every year.).
In 2021, a quarter of policyholders were first-time buyers.
The pandemic, which has closed many pet insurance outlets, has helped reduce the tendency of policyholders to switch providers between 2019 and 2021, as policyholders are less likely to visit outlets where they could be exposed to new business documents.
This factor could also explain the decline in first-time buyers between 2019 and 2021, uninsured pet owners (especially first-time pet owners), less exposed to in-store marketing literature and therefore less likely to take out insurance for the first time. .