Mintel’s pet insurance market analysis shows that the pet insurance industry remains resilient, despite insurers increasing premiums for pet owners in the UK.
UK Pet Insurance Industry
Rising veterinary costs, along with broader inflationary trends, have forced insurers to increase premiums. Despite this, and the wider effects of the cost of living crisis, only 8% of pet insurance policyholders are considering reducing their coverage in the next 12 months, and just 2% are thinking of cancelling it completely.
According to Mintel’s pet insurance research, proving the value of policies will become increasingly important over the coming years. A third of UK pet owners without insurance cite cost as a reason why they don’t have cover, while another quarter say it is because they don’t think pet insurance is good value for money. Insurers need to be clear about how premiums are calculated when communicating price rises, and spell out the costs of uninsured treatment.
Pet Insurance Industry Statistics for the UK
- UK pet insurance market share: The UK pet insurance market leader holds an estimated 42% share of the UK pet insurance market.
- UK pet insurance consumer statistics: A third of uninsured pet owners are considering buying a policy in the next 12 months, while almost a quarter of existing customers are looking to upgrade their policy.
UK Pet Insurance Market Report – What’s Inside?
This report looks at the following areas:
- Market size and five-year forecast for pet insurance gross written premiums
- Analysis of major market players, launch activity and advertising strategies
- Key market drivers, and regulatory and legislative changes in the market
- Ownership and level of cover held, and barriers to ownership among the uninsured
- Pet insurance plans over the next 12 months
- Key factors when choosing a pet insurance policy
- Attitudes towards pet insurance, including the need for insurers to justify premium rises
Report Scope
There’s a wide range of pet insurance policies in the market and for this report, the product definitions prepared are as follows:
- Lifetime cover is a comprehensive ‘lifetime’ insurance policy that pays out for ongoing illnesses for the whole life of the pet. It typically covers only new medical illnesses and injuries so any chronic diseases won’t be covered. The pet is covered up to a set amount each year for as long as the insurance policy remains in force. It’s the most comprehensive cover in the most and as a result, the most expensive.
- Max benefit insurance cover provides a fixed amount of money for each illness or injury to help pay for the pet’s treatment until the money runs out. It pays up to a set maximum per condition but doesn’t impose any time limit on how long the treatment lasts. There’s no time limit on reaching the amount. Similar to lifetime cover, this policy typically covers only new medical illnesses and injuries.
- Time-limited insurance cover comes up with a cover that pays up a set maximum per condition but only for a limited period (usually up to 12 months). When the set period is ended, or the fixed sum of money for a particular injury has been reached, the pet won’t be covered for that particular illness or injury. It’s the cheapest pet insurance product in the market with the lowest level of cover offered.
- Accident and injury only insurance cover provides cover for the accident or injury but excludes illness cover. Some accident covers will have a 12-month time limit.
- Pet health plan covers routine vaccinations and preventive pet health care, including monthly flea and worming treatments. This type of pet insurance policy spreads the costs of routine pet care treatments and services for a set monthly or annual fee. It doesn’t constitute insurance for illnesses/accidents.
Meet The Expert Behind the Analysis
This report is written by Mintel’s financial services analyst, Saltanat Kuermannal. Saltanat joined Mintel in October 2023. Prior to joining Mintel, Saltanat has worked as a consultant in the real estate sector. She has a PhD in Development Studies with trained backgrounds in Anthropology and International Politics.
Rising costs have prompted insurers to increase premiums and pet owners to review budgets, but owners’ resolute care for pets means the market remains resilient.
Saltanat Kuermannal
Financial Services Analyst
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Executive Summary
- Opportunities for the pet insurance market
- Address affordability concerns by confronting pet owners with the cost of vet treatments
- Offer extra benefits and tech solutions to prompt policy upgrades and add-on sales
- Focus on product terms to tempt would-be switchers
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- Gross written premiums are expected to grow steadily over the next five years
- Petplan leads the way in pet insurance
- Graph 1: estimated market share of pet insurance by GWP, 2023
- CMA review of veterinary sector
- What consumers want and why
- Despite soaring premiums, pet insurance ownership has remained stable
- Lifetime cover is still the most sought-after policy
- Graph 2: types of pet insurance policy cover held, 2024
- Affordability remains a key barrier to entry, with some questioning its value for money
- Cost sensitivity is widespread but almost no policyholders expect to cancel cover
- Insurers need to justify premium increases
- Graph 3: behaviours towards pet insurance, 2024
- Innovation and marketing
- Post-pandemic advertising expenditure remains robust
- Graph 4: total above-the-line, online display, and direct mail ad spend on pet insurance products, 2019/20-23/24
- Petplan’s ‘Puppy Insurance and Care’ ad focuses on peace of mind and reassurance on claims
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Market Dynamics
- Market size and performance
- Sustained growth in premiums in 2023
- Graph 5: value of pet insurance gross written premiums, 2017-23
- The dog segment continues to lead the way
- Market forecast
- Moderate, sustained growth is expected over the next five years
- GWP set for further growth in 2024
- Market segmentation
- Dog insurance policies dominate the market…
- Graph 6: number of pet insurance policy subscribers, by type of pet, 2017-23
- … and have achieved consistent growth in premiums
- Graph 7: pet insurance gross written premiums, by type of pet, 2017-23
- Average premiums were broadly stable in 2023
- Graph 8: average pet insurance premium (based on subscribers), by type of pet, 2017-23
- Market share
- Petplan is a strong market leader in pet insurance…
- Graph 9: estimated market share of pet insurance by GWP, 2023
- … and outperformed total market growth in 2023
- Acquisitions and exits are set to shake up the rest of the market
- Macro-economic and social factors
- A rebound in pet ownership in 2024
- Falling inflation has reduced pressure on household finances…
- Graph 10: CPI inflation rate, 2021-24
- … but veterinary costs have risen substantially
- Graph 11: CPI Index, veterinary and other services for pets, 2015-24
- Regulatory and legislative changes
- Consumer Duty places a heightened emphasis on customer outcomes
- CMA review outlines concerns over weak competition in the veterinary sector
- Microchipping for cats becomes compulsory
- Renters (Reform) Bill and amendments to the Tenant Fees Act 2019
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What Consumers Want and Why
- Pet insurance ownership
- Pet insurance ownership has remained stable
- Graph 12: pet insurance ownership – NET, by type of pet, 2024
- Still significant scope to increase penetration of pet insurance
- Graph 13: pet insurance ownership, by household income, 2024
- Level of cover held
- Lifetime cover is the most sought-after policy …
- Graph 14: types of pet insurance policy cover held, 2024
- … but price is still an important consideration
- Barriers to pet insurance
- Affordability is a key barrier to entry
- Graph 15: reasons for not having pet insurance, 2024
- Insurers need to convince doubters of the value of cover
- Improve communications and understanding to bring risks to life and enhance trust
- Pet insurance plans over the next 12 months
- Cost sensitivity is widespread but almost no policyholders expect to cancel cover…
- Graph 16: pet insurance intentions over the next 12 months, 2024
- … and few expect to reduce their level of cover
- Interest in policy upgrades has increased
- Strong interest in cover from uninsured pet owners
- Graph 17: proportion of adults who own a pet but do not have pet insurance planning to take out a pet insurance policy in the next 12 months, 2024
- Factors affecting choice of pet insurance policy
- Consumers are attracted to a range of policy features and perks
- Graph 18: incentives to choose a pet insurance policy, 2024
- Drop jargon to appeal to switchers and first time policyholders
- Welcome gifts can be a cost-effective sales aid
- Potential switchers are more engaged with policy specifics
- Graph 19: selected incentives to choose a pet insurance policy, by pet insurance ownership, 2024
- Attitudes towards pet insurance
- Insurers need to justify premium increases
- Graph 20: attitudes towards pet insurance, 2024
- Consumer Duty provides the opportunity to enhance service offerings
- Leverage customer reviews
- Promote sustainability efforts
- Graph 21: response to the statement “I think a provider’s commitment to sustainability should be taken into account when choosing a pet insurance policy”, by generation, 2024
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Innovation And Marketing Trends
- Launch activity and competitive strategies
- Tractive launches UK pet insurance
- CRIF introduced a new real-time pet insurance service called Pet Check
- LV= extends its insurance offering to UNISON members
- Napo ‘first pet insurer’ in UK to offer medical cover for XL Bullies
- Advertising and marketing activity
- Post-pandemic advertising expenditure remains robust
- Graph 22: total above-the-line, online display, and direct mail ad spend on pet insurance products, 2019/20-2023/24
- Market leaders dominate pet insurance adspend
- Petplan’s ‘Puppy Insurance and Care’ ad focuses on peace of mind and reassurance on claims
- More Than ramps up expenditure to become the second highest spender on pet insurance advertising
- TV remains the primary advertising channel…
- Graph 23: total above-the-line, online display, and direct mail advertising expenditure on pet insurance products, by media type, 2023/24
- … with some digital channel integration
- Agria’s five-week free pet insurance for puppies and kittens
- Go.Compare TV advert “Like father, like pet”
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Appendix
- Supplementary data
- Total (all pet) policies:
- Dog and cat policies only:
- Market forecast data and methodology
- Market forecast and prediction intervals
- Forecast methodology
- Report scope and definitions
- Market definition
- Market definition (cont.)
- Abbreviations and terms
- Methodology
- Consumer research methodology
- TURF analysis – methodology data
- Nielsen Ad Intel coverage
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