UK Pet Insurance 2008

Published by: Datamonitor

Published: Aug. 20, 2008 - 9 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

The pet market grew substantially in 2007 due to higher premium rates and volume

Pet insurance has become a product for the relatively well off, although price is a concern

The market remains heavily consolidated, with only a limited number of underwriters

The market is forecast to reach £697.8 million in 2012 as product penetration increases

Market Context

Introduction

The pet market grew substantially in 2007 due to higher premium rates and volume

The pet population has stalled due to shifts in social-economic conditions

The pet insurance market is principally concerned with dogs and cats

High claims inflation has constrained profits, although insurers are trying to compensate

Customer focus

Introduction

Pet insurance has become a product for the relatively well off, although price is a concern

Direct insurers dominate pet insurance distribution with many consumers choosing to purchase their policies by phone or online

More expensive direct mail and press advertising drove up pet insurance marketing costs

Competitive Dynamics

Introduction

The market continues to experience a high turnover, although entrants outnumber leavers

The market remains heavily consolidated, with only a limited number of underwriters

Future Decoded

Introduction

Pet ownership trends are forecast to remain steady over the next five years

Scenario one: market is forecast to reach £697.8 million in 2012 as product penetration increases

Scenario two: high premium rate inflation and lower product penetration lead to lower growth

APPENDIX

Supplementary data

Definitions

Methodology

Competitor data

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

TABLE OF FIGURES

Figure 1: UK pet insurance penetration rate, 2003-07

Figure 2: Both cat and dog premium income drove the growth in the market size

Figure 3: UK pet insurance penetration rate, 2003-07

Figure 4: Dog numbers have recovered slightly in 2007, although not enough to offset a decline in cats

Figure 5: The number of people who are economically active has grown in the last 10 years

Figure 6: The prevalence of smaller households has made it more difficult to keep a large animal

Figure 7: London has the lowest pet ownership in the UK

Figure 8: UK pet population by species, 2008

Figure 9: Pet owners are most likely to own dogs and cats

Figure 10: Price remains the most important decision behind a consumer's purchase choice

Figure 11: Pet ownership is lowest amongst consumers aged over 60

Figure 12: Penetration rates were highest among consumers aged between 30 and 44

Figure 13: Penetration rates are high among affluent consumers

Figure 14: Most consumers purchase their pet insurance through a direct insurer

Figure 15: The telephone remains the most popular distribution platform for pet insurance

Figure 16: The market leaders significantly outspend the market

Figure 17: Direct mail’s prominence in pet insurance reflects the importance of cross selling to the market

Figure 18: Underwriting for the pet insurance market remained highly concentrated in 2007

Figure 19: Higher penetration rates will fuel market growth

Figure 20: Growth will become marginal if product penetration declines due to high prices

TABLE OF TABLES

Table 1: UK Pet Insurance GWP, 2003-07 (£m)

Table 2: UK Pet insurance penetration rate, 2003-07

Table 3: UK dog and cat population, 1997-2007e (m)

Table 4: UK economic activity levels, 1998-2007

Table 5: UK households by size, 1971-2007

Table 6: UK dog and cat population by region, 2008

Table 7: The percentage of animal-owning households in the UK, 2007

Table 8: UK veterinarian industry numbers and pay inflation, 2003-07

Table 9: Top pets by ownership in the UK by age, 2007

Table 10: Penetration of pet insurance split by age group, 2007

Table 11: Penetration of pet insurance split by income bracket, 2007

Table 12: Distribution of UK pet insurance by channel, 2007

Table 13: UK pet insurance by distribution platform, 2006-07

Table 14: Top 10 pet insurance advertisers by medium, 2007

Table 15: Top 10 UK pet insurance advertisers, 2003-07

Table 16: Pet insurance advertising spend by medium, 2003-07

Table 17: Top UK pet insurers by market share, 2005-07

Table 18: Top UK pet insurers by premium income, 2005-07

Table 19: Key variables affecting pet insurance GWP, scenario one, 2008e-12f

Table 20: Scenario one: UK pet insurance GWP, 2003-12f

Table 21: Key variables affecting pet insurance GWP, scenario two, 2008e-12f

Table 22: Scenario two: UK pet insurance GWP, 2003-12f

Table 23: Top 10 pet insurance advertisers by medium, 2006

Table 24: Top 10 pet insurance advertisers by medium, 2005

Table 25: UK pet insurance competitors by premium income, 2005-07

Table 26: UK pet insurance competitors by market share, 2005-07

Abstract

• The latest data and market research, including information on market size, shifts in pet ownership trends, and product penetration levels
• An understanding of the competitive environment, and of the impact that new entrants and market consolidation is having on the pet insurance market
• Insight into changes in product distribution, tracking trends by platform and
• Two scenarios forecasting the market's GWP growth until 2012, based on primary research and in-house expertise

• Understand UK pet ownership trends and how canine and feline populations are changing
• Benchmark your company against your competitors based on current and past performances in the market.
• Develop your future business plans from an informed viewpoint with Datamonitor's GWP forecast

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