2023
9
UK Pet Insurance Market Report 2023
2023-09-12T04:02:34+01:00
OX1155119
2195
166495
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Report
en_GB
“Pet insurance is returning to a state of normality, after the recent pet boom. The cost of living crises is affecting all households and we are seeing consumers adopting a…

UK Pet Insurance Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s Pet Insurance Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest pet insurance industry trends and consumer behaviours affecting your business. Get a 360° view of the UK pet insurance market, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Topics Analysed in this Report

  • UK pet insurance market drivers, including inflation and consumer confidence.
  • Competitive strategies, launch activity and advertising activity in the pet insurance industry.
  • Pet insurance plans over the next 12 months.
  • Considerations when choosing a pet insurance provider.
  • Reasons for not taking out pet insurance.
  • Consumer attitudes towards pet insurance.

UK Pet Insurance Market Outlook

Despite household finances being put under severe pressure over the last 18 months, consumers aren’t willing to jeopardise their pets’ health. This commitment to pets’ wellbeing has made pet insurance fairly well insulated from the cost of living crisis. However, over a third of policyholders are thinking about searching for a cheaper policy. Brands need to be alert to this increased price-sensitivity.

  • Pet insurance industry growth: Gross written premiums for pet insurance grew by 13% in 2022, to £1.58 billion

Pet Insurance Industry Trends and Opportunities

Demand for better value

For non-policyholders, the cost of the largest barrier to the adoption of pet insurance. One-fifth of pet owners state that they don’t think that pet insurance offers value for money. The pet insurance industry needs to challenge these perceptions, highlighting how pet owners, actually, can’t afford not to have cover, given the high cost of vet treatments.

  • Pet insurance industry analysis: 30% of pet owners without insurance say they don’t have cover because they can’t afford it.

Pets seen as equals

Wider changes in social trends and the changing role of pets offers greater opportunities for insurers. Pets are increasingly seen as essential – sometimes even equal – members of the family. With the average age of first-time parenthood rising, there is a growing trend of Millennials owning pets that occupy the role of children. With these changes in mind, pet owners are more eager to spend on their pets’ wellbeing, including on insurance policies to help keep them healthy.

  • Pet insurance industry opportunity: 49% of pet owners would be willing to go into debt to cover a pet’s medical bill.

To learn how to connect with your audience, purchase our full UK Pet Insurance Market Report 2023.  Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Leading Brands in the Pet Insurance Industry

Allianz, RSA, Red Sands, Many Pets, Pinnacle Insurance, Direct Line.

Additional Features Included with Your Purchase

  • Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
  • Consumer Confidence Tracker: Our Trackers paint the picture of the economic confidence of up to 40 different demographics, as well as their greatest concerns in the current economic climate.
  • Custom PowerPoints: Incorporate our consumer research data into your own work so you can win over your clients and stakeholders. Select insights from your report to create a custom presentation that is ready to download in minutes.
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  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Insights from a Finance Analyst

This report, written by Charlie Landsborough, a leading finance analyst, delivers in-depth commentary and analysis to highlight trends in the pet insurance industry and add expert context to the numbers.

UK Pet insurance market is returning to a state of normality, after the recent pet boom. The cost of living crisis is affecting all households and we are seeing consumers adopting a more skeptical, cautious and informed approach to spending. However, whilst consumers are looking to lower their monthly costs, pet insurance is remaining resilient. In fact, across pet markets we are seeing that consumers are still prioritising their pets even during a cost of living crisis.”

Charlie Landsborough
Research Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five year outlook for pet insurance
      • Figure 1: Category outlook for pet insurance, 2023-28
    • The market
    • Record growth recorded in 2022…
      • Figure 2: Value of pet insurance gross written premiums, 2017-2023
    • … and GWP is forecasted to reach £1.9 billion in 2028
      • Figure 3: Market forecast for pet insurance, 2018-28
    • Average premiums grew modestly in 2022
      • Figure 4: Average pet insurance premium (based on subscribers), by type of pet, 2017-2022
    • Companies and brands
    • Petplan remains the market leader
      • Figure 5: Estimated market share of pet insurance by GWP, 2022
    • The consumer
    • Increased penetration remains a key area of opportunity
      • Figure 6: Pet insurance ownership levels across different pets, 2023
    • More than half of policyholders are opting for lifetime cover
      • Figure 7: Types of pet insurance policy cover, 2023
    • A third of policyholders are considering looking for a cheaper policy
      • Figure 8: Pet insurance intentions over the next 12 months, 2023
    • Price is the key consideration when choosing between providers
      • Figure 9: Pet insurance purchase drivers, 2023
    • Affordability is a key barrier to entry…
      • Figure 10: Reasons for not having pet insurance, 2023
    • Most pet owners are worried about whether they’ll be able to afford future vet bills
      • Figure 11: Attitudes towards pet insurance, 2023
  3. Issues and Insights

    • The cost of living crisis bites
    • Pet insurers are moving into wellness and preventative care
  4. Market Size and Performance

    • Record growth recorded in 2022
      • Figure 12: Value of pet insurance gross written premiums, 2017-2023
    • Subscribers up 11% in 2022
      • Figure 13: Size of the pet insurance market, by exposure, subscribers and gross written premiums, 2016-2022
  5. Market Forecast

    • Pet insurance is estimated to grow steadily over the long term
      • Figure 14: Category outlook for pet insurance, 2023-28
    • Gross written premiums will grow steadily over the next five years
      • Figure 15: Market forecast for pet insurance, 2018-28
      • Figure 16: Market forecast for pet insurance, including lower and upper bounds, 2023-28
    • Forecast methodology
  6. Market Segmentation

    • Dog insurance subscribers saw a 14% increase
      • Figure 17: Number of pet insurance policy subscribers, by type of pet, 2017-2022
    • Dog insurance premiums grew by 18%
      • Figure 18: Pet insurance gross written premiums, by type of pet, 2017-22
    • Average premiums grew modestly in 2022
      • Figure 19: Average pet insurance premium (based on subscribers), by type of pet, 2017-2022
  7. Market Drivers

    • Inflation continues to cause pressure on household finances
    • Vet costs continue to rise
    • Pet ownership is plateauing…
    • … but the role of the pet is changing
  8. Regulatory and Legislative Changes

    • Pet insurance providers will need to consider Consumer Duty
    • The Renters’ (Reform) Bill could change the rental sector for pet owners
    • Vet business takeovers raise competition concerns for pet owners
  9. Market Share

    • Petplan continues to lead the market
      • Figure 20: Estimated market share of pet insurance by GWP, 2022
    • ManyPets sets its sights on further growth
  10. Launch Activity and Competitive Strategies

    • Pinnacle Pet Group continues to grow through acquisitions
    • Petcover Group grows its exotic pet insurance business
    • Waggel teams up with Vet-AI
    • Admiral moves into the pet insurance market
    • Pet wearables continue to grow in popularity
  11. Advertising and Marketing Activity

    • Advertising expenditure remains high relative to recent years
      • Figure 21: Total above-the-line, online display, and direct mail advertising expenditure on pet insurance products, 2018/19-2022/23
    • ManyPets and Petplan dominate adspend in the market
      • Figure 22: Top 10 above-the-line, online display and direct mail advertisers on pet insurance products, 2021/22-2022/23
    • Traditional channels remain key
      • Figure 23: Total above-the-line, online display, and direct mail advertising expenditure on pet insurance products, by media type, 2022/23
  12. Pet Insurance Ownership

    • Increased penetration remains a key area of opportunity
      • Figure 24: Pet insurance ownership, by type of pet, 2023
  13. Level of Cover Held

    • More than half of policyholders are opting for lifetime cover
      • Figure 25: Types of pet insurance policy cover, 2023
    • Mid-level cover remains resilient
  14. Pet Insurance Plans over the Next 12 Months

    • A third of policyholders are considering looking for a cheaper policy
      • Figure 26: Pet insurance intentions over the next 12 months, 2023
    • Better safe than sorry, despite the cost of living crisis
    • Cancelling pet insurance is out of the question
  15. Key Factors when Choosing Pet Insurance Provider

    • Price is the key consideration…
      • Figure 27: Pet insurance purchase drivers, 2023
    • … but good customer service is also a priority
    • Vet recommendations are particularly powerful among young pet owners
      • Figure 28: Consumers who consider recommendations from vets as one of the three most important factors when choosing a pet insurance provider, by generation, 2023
  16. Barriers to Ownership

    • Affordability is a key barrier to entry…
      • Figure 29: Reasons for not having pet insurance, 2023
    • …but some question whether it’s worth it
  17. Attitudes towards Pet Insurance

    • Most pet owners are worried about whether they’ll be able to afford future vet bills…
    • …but half would be willing to go into debt to cover their pet’s medical care
      • Figure 30: Attitudes towards pet insurance, 2023
    • Strong interest in co-insurance deals
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  19. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 31: Market forecast for pet insurance premiums, including lower and upper bounds, 2023-28
    • Market drivers and assumptions
    • Forecast methodology

About the report

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.

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Data

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*databooks not available with UK B2B Industry reports.

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