Pet Accident-only Insurance Market - Global Industry Research Analysis

Pet Accident-only Insurance Market Insights

According to Market Research Store, the global pet accident-only insurance market size was valued at around USD 4.78 billion in 2023 and is estimated to reach USD 11.23 billion by 2032, to register a CAGR of approximately 8.9% in terms of revenue during the forecast period 2024-2032.

The pet accident-only insurance report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032

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Global Pet Accident-only Insurance Market: Overview

Pet accident-only insurance is a type of pet insurance policy that covers veterinary expenses resulting from unexpected accidents, such as fractures, injuries, or poisoning, but does not include coverage for illnesses, pre-existing conditions, or routine check-ups. This insurance is ideal for pet owners looking for an affordable option to safeguard against emergency medical costs without committing to a comprehensive plan. As veterinary care becomes more expensive, many pet owners opt for accident-only policies to ensure financial support in case of sudden mishaps. The affordability and straightforward coverage of these policies make them a popular choice for those who want basic protection without high monthly premiums.

Key Highlights

• The pet accident-only insurance market is anticipated to grow at a CAGR of 8.9% during the forecast period.
• The global pet accident-only insurance market was estimated to be worth approximately USD 4.78 billion in 2023 and is projected to reach a value of USD 11.23 billion by 2032.
• The growth of the pet accident-only insurance market is being driven by increasing pet adoption rates and rising awareness about pet healthcare expenses.
• Based on the pet type, the dogs segment is growing at a high rate and is projected to dominate the market.
• On the basis of coverage type, the accident & illness segment is projected to swipe the largest market share.
• In terms of end-user, the individual pet owners segment is expected to dominate the market.
• Based on the distribution channel, the online segment is expected to dominate the market.
• By region, Europe is expected to dominate the global market during the forecast period.

Pet Accident-only Insurance Market: Dynamics

Key Growth Drivers

• Rising Pet Ownership: Increasing adoption of pets, especially in urban areas, drives demand for affordable insurance options.
• Cost-Effective Coverage: Accident-only plans are more affordable than comprehensive plans, appealing to budget-conscious pet owners.
• Growing Awareness: Increased awareness of pet health risks and the financial burden of accidents encourages insurance uptake.
• Veterinary Cost Inflation: Rising veterinary treatment costs make accident-only insurance a practical choice for unexpected expenses.
• Simplified Offerings: Accident-only policies are straightforward, making them easier to understand and purchase compared to complex plans.

Restraints

• Limited Coverage: Accident-only plans exclude illnesses, which may deter pet owners seeking more comprehensive protection.
• Low Perceived Value: Some pet owners may not see the immediate need for insurance, especially if their pets are young or healthy.
• Cultural Barriers: In some regions, pets are not viewed as family members, reducing the willingness to invest in insurance.
• Claim Denials: Negative experiences with claim rejections can discourage potential customers from purchasing policies.

Opportunities

• Emerging Markets: Untapped markets in developing countries present significant growth potential as pet ownership rises.
• Customizable Plans: Offering add-ons or flexible coverage options can attract a wider customer base.
• Digital Transformation: Leveraging technology for easy policy purchase, claims processing, and customer engagement can enhance market penetration.
• Partnerships with Veterinarians: Collaborating with vet clinics to promote insurance plans can increase adoption rates.
• Focus on Exotic Pets: Expanding coverage to include exotic pets can cater to a niche but growing segment.

Challenges

• Regulatory Hurdles: Varying regulations across regions can complicate market entry and operations.
• High Competition: The presence of comprehensive pet insurance providers may overshadow accident-only plans.
• Customer Education: Misconceptions about insurance benefits and coverage limitations can hinder market growth.
• Fraud Risks: Fraudulent claims can increase operational costs and impact profitability.
• Economic Downturns: During financial crises, discretionary spending on pet insurance may decline.

Pet Accident-only Insurance Market: Segmentation Insights

The global pet accident-only insurance market is divided by pet type, coverage type, end-user, distribution channel, and region.

Pet Accident-only Insurance Market: Report Scope

Segmentation Insights by Pet Type

Based on pet type, the global pet accident-only insurance market is divided into dogs, cats, and others.

Dogs represent the most dominant segment in the pet accident-only insurance market. Their higher likelihood of injuries due to outdoor activities, energetic behavior, and participation in training or sports increases the demand for accident-only insurance. Additionally, veterinary costs for dog-related accidents, such as fractures, ligament tears, and vehicle-related injuries, are often high, making insurance an essential investment for dog owners. The widespread ownership of dogs across various regions further contributes to this segment's dominance in the market.

Cats follow as the second most significant segment in the market. While cats are generally less prone to accidents compared to dogs, they are still susceptible to injuries, especially if they are outdoor or free-roaming. Common risks include falls from heights, car accidents, and fights with other animals. Many cat owners opt for accident-only insurance to mitigate sudden veterinary expenses, particularly in urban settings where the chances of injuries from traffic and high-rise buildings are greater.

Segmentation Insights by Coverage Type

On the basis of coverage type, the global pet accident-only insurance market is bifurcated into accident only and accident & illness.

Accident & Illness coverage is the dominant segment in the pet insurance market, as it provides more comprehensive protection for pet owners. This type of coverage not only includes accident-related injuries such as fractures, wounds, and poisoning but also covers illnesses, chronic conditions, and hereditary diseases. Pet owners increasingly prefer this option due to the rising cost of veterinary care and the unpredictability of pet health issues. Since illnesses such as infections, cancer, and digestive disorders can lead to significant medical expenses, many pet owners find Accident & Illness policies to be a more secure and cost-effective choice in the long run.

Accident Only coverage, while still a significant segment, holds a smaller market share compared to Accident & Illness. This coverage is more affordable and primarily appeals to pet owners looking for basic financial protection against sudden injuries, such as car accidents, bites, or broken bones. It is often chosen by owners of younger or generally healthy pets who do not anticipate frequent medical expenses beyond accidental injuries. However, its limited scope makes it less popular compared to comprehensive policies, as it does not cover medical conditions that arise due to disease or aging.

Segmentation Insights by End-User

Based on end-user, the global pet accident-only insurance market is divided into individual and commercial.

Individual pet owners represent the dominant segment in the pet accident-only insurance market. With the rising trend of pet humanization, many individuals consider pets as family members and seek financial protection against unexpected medical expenses. Pet owners, especially those with active or outdoor pets, recognize the risks associated with accidents, such as fractures, bites, or vehicle-related injuries. As veterinary costs continue to rise, accident-only insurance provides a cost-effective option for those looking to mitigate financial risks without committing to comprehensive policies. The increasing number of pet adoptions, particularly in urban areas, further drives the growth of this segment.

Commercial entities, including pet shelters, pet boarding services, and breeders, hold a smaller share in the market. While these businesses often handle multiple animals, they typically rely on liability insurance rather than individual accident-only policies. However, some high-end pet care facilities and professional breeders opt for accident-only insurance to protect against unexpected injuries that may occur under their care. Despite its niche market, the commercial segment is growing as pet service businesses expand and prioritize risk management strategies.

Segmentation Insights by Distribution Channel

On the basis of distribution channel, the global pet accident-only insurance market is bifurcated into online and offline.

Online distribution is the dominant segment in the pet accident-only insurance market. The rise of digital platforms, increased internet penetration, and the convenience of online policy comparisons have driven pet owners to prefer purchasing insurance through websites and mobile apps. Many insurance providers offer quick quotes, easy policy customization, and hassle-free digital claims processing, making online channels the preferred choice for modern consumers. Additionally, online reviews and customer feedback help pet owners make informed decisions, further strengthening this segment’s dominance. The availability of exclusive online discounts and partnerships with pet-related e-commerce platforms also contribute to its rapid growth.

Offline distribution, which includes insurance agents, veterinary clinics, and pet specialty stores, holds a smaller market share but remains relevant. Some pet owners, particularly those less familiar with digital platforms, prefer face-to-face interactions when purchasing insurance. Veterinary clinics play a key role in recommending accident-only insurance to pet owners, as they can directly explain the benefits based on a pet’s medical history. However, the offline segment faces challenges from the growing digitalization of insurance services, leading to a gradual shift toward online channels.

Pet Accident-only Insurance Market: Regional Insights

• Europe is expected to dominates the global market

Europe stands as the leading region in the pet accident-only insurance market, driven by a significant increase in pet adoption across countries such as the UK, Italy, France, Russia, and Germany. Insurance companies in Europe are proactively introducing diverse policy coverages to encourage pet ownership, offering plans that encompass illnesses, injuries, and various diseases. This comprehensive approach has solidified Europe's dominance in the market.

North America holds a substantial share of the pet accident-only insurance market, with the United States at the forefront due to its high pet ownership rates and advanced veterinary care services. The presence of major insurance providers and a well-established veterinary infrastructure further bolster the market in this region. The increasing awareness among pet owners about the benefits of insurance coverage for unexpected veterinary expenses contributes significantly to market growth.

The Asia-Pacific region is experiencing rapid growth in the pet accident-only insurance market, attributed to rising pet ownership and increasing disposable incomes in emerging economies. Countries like India are witnessing a surge in pet adoption, with an estimated pet population of 32 million, growing at 12% annually. Initiatives such as partnerships between insurance companies and local providers to offer unique pet health coverage are propelling the market forward.

Latin America is emerging as a potential market for pet accident-only insurance, driven by increasing pet ownership rates and a growing awareness of pet healthcare. Urbanization and changing lifestyles have led to a higher demand for pet insurance products, especially in countries like Brazil, which boasts a significant pet population. The development of veterinary healthcare infrastructure and rising per capita income are expected to further stimulate market growth in this region.

The Middle East and Africa region is gradually recognizing the importance of pet accident-only insurance, with countries like South Africa and Saudi Arabia witnessing a rise in pet ownership. Improved awareness regarding animal health and the introduction of regulatory frameworks to support veterinary services are contributing to the market's expansion. As more pet owners seek financial protection against unexpected veterinary costs, the demand for pet insurance products in this region is anticipated to grow.

Recent Developments:

• In 2023, Trupanion acquired the pet insurance business of SmartPak, a leading provider of equine and pet wellness products. This acquisition includes SmartPak’s accident-only insurance plans.
• In 2023, Nationwide acquired PetHealth Inc., a leading provider of pet insurance and microchip identification services. This acquisition includes PetHealth’s accident-only insurance plans and strengthens Nationwide’s position in the pet insurance market.

Pet Accident-only Insurance Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the pet accident-only insurance market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global pet accident-only insurance market include:

• Petplan UK (Allianz)
• Nationwide
• Trupanion
• Petplan NorthAmerica(Allianz)
• Hartville Group
• Pethealth
• Petfirst
• Embrace
• Royal & Sun Alliance (RSA)
• Direct Line Group
• Agria
• Petsecure
• PetSure
• Anicom Holding
• ipet Insurance
• Japan Animal Club

The global pet accident-only insurance market is segmented as follows:

By Pet Type

• Dogs
• Cats
• Others

By Coverage Type

• Accident Only
• Accident & Illness

By Distribution Channel

• Online
• Offline

By End-User

• Individual
• Commercial

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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