Pet Insurance - UK - August 2016
“The pet insurance market is currently experiencing strong growth, as more owners choose to take out cover. While Mintel expects this to prevail over the next few years, providers must continue to seek efficiencies, in order to contain costs and remain competitive. They must also find a balance between offering multiple products and cover levels – to appeal to a broad consumer base – and simplifying their propositions, so they are as easy to understand as possible.”
– Sarah Hitchcock, Senior Analyst – Financial Services
This report discusses the following key topics:
- Target parents with family-friendly policies and attractive packaged solutions
- Quality is as important as price
Despite the challenges, pet insurers are not short of distribution partners. There are numerous companies selling policies in the UK, most of which are from the general insurance, veterinary and retail sectors. They compete for business in a fairly crowded marketplace, but also benefit from having a large target audience. Mintel’s online survey shows that 59% of UK adults have at least one pet in their household, most commonly a cat or a dog.
Mintel’s consumer research also reveals what proportion of pet owners have insurance and what type of policy they have taken out. It identifies the main concerns shared by pet owners, and assesses policyholder attitudes and buying behaviour. Lastly, it explores the level of interest in certain policy features and benefits, including preferred referral networks, and assesses future buying and switching intentions.
Products covered in this Report
Pet insurance is designed to cover medical expenses if the insured pet becomes ill or is injured in an accident. Policies will not normally cover routine visits to the vet or events that could have been anticipated, such as routine vaccinations and neutering. Most products cater for cats and dogs, although there are policies available for rabbits, horses/ponies and more exotic pets.
Policies fall into three main categories:
- High-level/lifetime policies – provide the most comprehensive cover, paying out a set amount for veterinary treatment (which may be a total amount per year or a set amount per condition), which renews each year in line with the renewal of the policy. They cover ongoing and recurring illnesses for the lifetime of the pet, providing the policy remains active (ie the premiums keep being paid). As a result, lifetime policies are often the most expensive option. Moreover, premiums will rise with the age of the pet, and as a result of any claims made.
- Mid-level/‘per condition no time limit’ policies – provide cover for conditions up to a set amount but there is no time limit placed on how long the policyholder can claim for. Once the amount has been reached the condition is then excluded from any future payouts.
- Basic-level/time-limited policies – provide cover up to a maximum amount per condition for a limited period of time (usually 12 months). After this time, the condition is excluded, even if the policy is renewed. Any further treatment needed after the 12-month period would need to be self-funded. These policies tend to be the cheapest, but offer the lowest level of cover of the three main types.
In addition, there are low-cost accident-only pet policies, which only provide cover for accidents and exclude cover for illnesses.
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
Why buy from us?
Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.
Buy now and you'll have instant access to the information you need to make the right decisions.
Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.