Pet Insurance: market research reports

Pet health insurance is a niche insurance product designed to help cover the veterinary expenses of dogs and cats, with some policies also covering other types of small companion animals. Because pets are legally considered to be the property of their owners, pet insurance is not, technically speaking, a health product like human insurance, but rather falls under the Property and Casualty insurance classification.

In other words, although it is of course designed to provide medical coverage for companion animals, pet insurance actually functions as indemnity insurance (similar to car or homeowners insurance) to restore financial loss stemming from pet healthcare events, providing reimbursement to the pet owner once a claim is filed.

Insurance for horses, which are much more likely than smaller companion animals to be regarded as important investments, is based on a completely different set of actuary information and is not part of the pet health insurance market as defined by leading industry participants in North America.

The range of coverage offered by pet insurance policies can vary widely by provider and type of plan, with most companies offering at least three levels of coverage, often distinguished by such names as “Basic” and “Premium.” Most providers cover most types of illness, injuries and accidents, hospitalization and surgery, and prescription medications, although deductible levels, premiums, and reimbursement caps often vary, and coverage may also be limited according to pet age, breed and medical condition.