2022
9
UK Pet Insurance Market Report 2022
2022-08-13T04:08:52+01:00
OX1103157
2195
154526
[{"name":"Insurance","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services\/insurance"}]
Report
en_GB
“Despite the positive growth in value terms in 2021, the market faces a tricky 2022 as the rising cost of living impacts consumer spending. One in five policyholders are looking…

UK Pet Insurance Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Pet Insurance Market Report identifies consumers’ attitudes relating to pet insurance, the impact of the cost of living and future innovations in the pet insurance market. This report covers the pet insurance market size, market forecast, market segmentation and industry trends for the UK Pet Insurance market.

 

UK Pet Insurance Market – Current Market Landscape 

The cost of living crisis and rising inflation will impact the pet insurance market. Price sensitivity, switching, and policy downgrades will increase. While lifetime-cover policyholders typically pay the highest premiums, Mintel’s pet insurance market research suggests that policyholders with mid-level cover are most at risk of cancelling or downgrading policies in the next year. However, spending on pets is expected to be fairly resilient against inflation, benefitting the pet insurance market.

 

UK Pet Insurance Market – Market Share and Industry Statistics

Mintel’s pet insurance research indicates that key players in the pet insurance market are facing a growing threat from newer players. Technology-focused solutions are transforming how pet insurance policies are delivered and how claims are processed. The UK pet insurance market is also focusing on providing digital platforms that offer products and services beyond the core insurance offering.

  • 57% of UK consumers own at least one pet.
  • 20% of pet insurance buyers plan on switching to a cheaper policy within 12 months.
  • UK pet insurance market size: Insurance premiums reached £1.39 billion in 2021, a 12% increase on 2020.
  • UK pet insurance market share: Allianz is one of the leading brands in the pet insurance market, with an estimated market share of 39%.

 

UK Pet Insurance Market – Future Trends 

Technology developments are expected to boost the pet insurance industry growth as digital tools and resources can be used alongside pet insurance to improve overall pet health. This suggests the trend for more holistic pet care products, which has a strong potential benefit for the pet insurance market if brands use tech to develop a more flexible and personalised cover that will help to increase engagement.

To discover more about the UK Pet Insurance Market Report 2022, read our UK Pet Food Market Report 2022or take a look at our extensive Pets Market Research.

 

 

Understand Quickly

  • Examines the pet insurance market size and forecasts the pet insurance industry growth.
  • UK pet insurance market drivers, including inflation and consumer confidence.
  • Competitive strategies, launch activities and advertising activities in the pet insurance industry.
  • Consumer intentions in the pet insurance market and plans over the next 12 months.
  • Attitudes towards the pet insurance market.
  • Explores pet insurance market share and pet insurance market size.

 

Covered in this Report

Products: Lifetime cover, max benefit cover, time-limited cover, accident and injury cover, pet health plan.

Pet Insurance Market – Brands: Waggel, Many Pets, MORE TH<N, Pet Plan, Direct Line.

 

Expert Analysis from a Specialist in the Pet Insurance Market

This report, written by Alex Kharchenko, a leading analyst in the pet insurance industry, delivers in-depth commentary and analysis to highlight current trends in the pet insurance market and add expert context to the numbers.

Despite the positive growth in value terms in 2021, the UK pet insurance market faces a tricky 2022 as the rising cost of living impacts consumer spending. One in five policyholders are looking to reduce their pet insurance premiums in the next 12 months, with mid-level cover most at risk of being downgraded. In this climate, insurers will need to demonstrate value and help stretched policyholders to navigate these financial pressures with options to lower costs or provide additional value-added incentives.”

Alex Kharchenko
Financial Services Analyst

 

Table of Contents

  1. Overview

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

    • The five-year outlook for the pet insurance market
      • Figure 1: Category outlook, 2022-27
    • The market
    • GWPs surged by 12% in 2021
      • Figure 2: Value of pet insurance gross written premiums, 2017-22*
    • Premiums are forecast to reach £1.9 billion in 2027
      • Figure 3: Market forecast for pet insurance, 2017-27
    • Growth in pet ownership has plateaued
      • Figure 4: Pet ownership, 2020, 2021 and 2022
    • Companies and brands
    • Petplan maintains its market-leading position
    • ManyPets significantly increases its market share
      • Figure 5: Estimate market share of pet insurance by GWP, 2021
    • The consumer
    • 42% of pet owners say they have pet insurance
      • Figure 6: Pet products/services ownership in the last 12 months, 2022
    • More than half of pet insurance policyholders have lifetime cover
      • Figure 7: Types of pet insurance policy cover, 2022
    • A fifth of policyholders are looking to switch to a cheaper deal
      • Figure 8: Pet insurance intentions in the next 12 months, 2022
    • A tricky balance between cost and quality
      • Figure 9: Pet insurance purchase drivers, 2022
    • Scope for insurers to extend into additional services
      • Figure 10: Health and wellbeing intentions, 2022
  3. Issues and Insights

    • The cost of living crisis creates uncertainty in the UK pet insurance market
    • Pet health and wellbeing influence increasing in the market
  4. Market Size and Performance

    • Pet insurance GWP increased by 12% in 2021
      • Figure 11: Value of pet insurance gross written premiums, 2017-22*
    • Subscriber numbers up by 4% in 2021
      • Figure 12: Size of the pet insurance market, by exposure, subscribers and gross written premiums, 2016-2021
  5. Market Forecast

    • Pet insurance market will struggle for real-terms growth in the short term
      • Figure 13: Category outlook, 2022-27
    • Premiums are forecast to reach £1.9 billion by 2027
      • Figure 14: Market forecast for pet insurance, 2017-27
      • Figure 15: Total pet insurance gross written premiums, by value, 2022-27
    • Learnings from the last income squeeze
      • Figure 16: Value of the pet insurance market, by GWP, 2007-17
    • Forecast methodology
  6. Market Segmentation

    • Dog insurance subscribers increase by 9%
      • Figure 17: Number of pet insurance policy subscribers, by type of pet, 2017-21
    • Dog insurance policies take the lead
      • Figure 18: Pet insurance gross written premiums, by type of pet, 2017-21
    • Average premiums for cat insurance increased by 12.1% in 2021
      • Figure 19: Average pet insurance premium* (based on subscribers), by type of pet, 2016-21
  7. Market Drivers

    • Inflation is the key concern for consumers, pet insurance providers and the economy
    • The conflict in Ukraine has hit household finances in the UK
    • Consumer confidence is at its lowest since 2012
      • Figure 20: UK Financial Confidence Index, 2016-22
    • Pet owners are vulnerable to income squeeze
    • Growth in pet ownership has plateaued
      • Figure 21: Pet ownership, 2020, 2021 and 2022
    • Children in household drive ownership of dogs
    • Household expenditure on pets slightly decreased in 2020/21
      • Figure 22: Average UK weekly household expenditure on pets, by component, 2016/17-2020/21
    • A fifth of pet owners are concerned about the expense of owning a pet
      • Figure 23: Major concerns when owning a pet, 2022
    • Pet insurance claims topped one million in 2021
      • Figure 24: Number of claims notified and average claim value, 2016-21
    • Claims incurred increased by 9%…
      • Figure 25: Gross claims incurred and claims ratio, 2016-21
    • …while pet insurance complaints decreased
      • Figure 26: Number of pet insurance complaint enquiries, new cases and percentage of cases upheld, 2016/17-2021/22
  8. Regulatory and Legislative Changes

    • FCA introduces a new Consumer Duty
    • Government to reform pet microchip rules
  9. Market Share

    • Petplan maintains its market-leading position
    • Red Sands became the second-largest pet insurance provider
    • Pinnacle Insurance saw a 30% increase in GWP in 2021
    • Direct Line saw a modest decline in GWP in 2021
    • ManyPets significantly increases its market share
      • Figure 27: Estimate market share of pet insurance by GWP, 2021
  10. Launch Activity and Competitive Strategies

    • Bought by Many acquires VetBox and rebrands to ManyPets
    • Co-op partners with Quotezone…
    • …and launches discounted insurance for those adopting pets
    • Revolut enters the pet insurance market
    • FintechOS launches a pet insurance accelerator for personalised cover
    • Asda Money offers 24/7 digital access to vets
    • Petplan provides free pet insurance for Ukrainian refugees
    • Napo launches pet insurance cover to UK market
    • Animal Friends launches lifetime policy with highest vet fee cover
    • JAB acquires majority stake in Cardif Pinnacle
    • Agria promotes sustainability
  11. Advertising and Marketing Activity

    • ATL advertising expenditure skyrocketed by 226%
      • Figure 28: Total above-the-line, online display, and direct mail advertising expenditure on pet insurance products, 2016/17-2021/22
    • ManyPets remains the leader in adspend
    • Petplan and GoCompare record big increases in adspend
      • Figure 29: Top 10 above-the-line, online display and direct mail advertisers on pet insurance products, 2020/21-2021/22
    • TV dominates but brands increase adspend on digital channels
      • Figure 30: Total above-the-line, online display and direct mail advertising expenditure on pet insurance products, by media type, 2021/22
    • Nielsen Ad Intel coverage
  12. Brand Research

    • Brand map
      • Figure 31: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 32: Key metrics for selected brands, 2022
    • Brand attitudes: Direct Line is more likely to be associated with trust
      • Figure 33: Attitudes, by brand, 2022
    • Brand personality: specialist pet insurers are more likely to be seen as fun…
      • Figure 34: Brand personality – macro image, 2022
    • …and as progressive
      • Figure 35: Brand personality – micro image, 2022
    • Brand analysis
    • Petplan is the most recommended brand among consumers
    • ManyPets is seen as worth paying more for but lacks brand identity
    • MORE TH&gt;N is associated with reliability and accessibility
    • Direct Line is the most trusted pet insurance provider
    • Waggel experiences a lack of brand awareness
  13. Pet Insurance Ownership

    • 42% of pet owners have pet insurance
      • Figure 36: Pet products/services ownership in the last 12 months, 2022
    • Decline in some areas of pet-related spending
    • 20% claim to have a pet health plan
  14. Level of Cover Held

    • More than half of pet insurance policyholders have lifetime cover
      • Figure 37: Types of pet insurance policy cover, 2022
    • Mid-level cover policyholders are at more risk of downgrading policy
      • Figure 38: Pet insurance plans for the next 12 months, by type of cover held, 2022
  15. Type of Pet Insurance Provider

    • Brand awareness helps general insurers stem the growing threat from pet specialist brands
      • Figure 39: Current pet insurance provider, 2022
  16. Pet Insurance Plans over the Next 12 Months

    • A fifth of policyholders are looking to switch to a cheaper deal
      • Figure 40: Pet insurance intentions in the next 12 months, 2022
    • Finding cheaper cover is preferred over policy cancellation
  17. Considerations when Choosing Pet Insurance

    • A tricky balance between cost and quality
      • Figure 41: Pet insurance purchase drivers, 2022
    • 30% are looking for cover for pre-existing conditions and claims evidence
  18. Attitudes and Behaviours towards Pet Insurance

    • More than half of pet owners are interested in using pet tech
      • Figure 42: Attitudes towards pet insurance, 2022
    • Financial incentives continue to appeal
  19. Interest in Pet Insurer Advice and Recommendations

    • Scope for insurers to extend into additional services
    • Insurers are well-placed to offer nutrition information and access to new pet foods
      • Figure 43: Health and wellbeing intentions, 2022
    • Exercise tips for those already worried about pet exercise
  20. Appendix – Data Sources, Abbreviations and Supporting Information

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

    • Total market forecast
    • Value of total pet insurance premiums
      • Figure 44: Market forecast for pet insurance premiums, including lower and upper bounds, 2022-27
    • 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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*databooks not available with UK B2B Industry reports.

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