South America Pet Insurance Market Outlook, 2027
Pet insurance is an insurance policy bought by a pet owner which helps to lessen the overall costs of expensive veterinary bills, with coverage similar to health insurance policies for humans. Pet insurance will cover, either entirely or in part, the often expensive veterinary procedures. Increase in the number of veterinary centres, rising medical expenses in veterinary medicine, significant surge in the demand for pet policies, and growth in need for financial safety in cases of uncertainties are expected to drive the growth of the South America pet insurance market. On the other hand, extortionate cost of pet insurance policies is expected to hinder the growth to some extent. However, increase in government initiatives regarding pet insurance policies are expected to create ample opportunities for the industry.
The report titled, “ South America Pet Insurance Market Outlook, 2027”, by Bonafide Research categorizes the market to forecast the revenues and analyze the trends in each of the following segments: based animal type (Cat, Dog & others), by insurance type (Accidental and Illness & Accident only endorsement) by end-user (Agency, Broker, Bancassurance, Direct writing) based on countries & major companies. The pet insurance market in South America shows positive signs of growth; however, it is still weak in terms of global market share. The market in the year 2016 was at merely USD 0.21 Billion, valuing a single-digit share in the global market. About 20% of the population still resides in rural areas and this leads to an information barrier as the rural population is neither aware nor able to afford pet insurance. With pet health care costs continuing to increase, it’s critical for owners to have a reliable financial plan in place to pay for unexpected medical procedures. However, the region is expected to grow over a market of 12% in the coming period. Increasing concerns of pet owners regarding their health, rising instances of accidents, and heightened exposure of pets to the risk of diseases are the factors driving the pet insurance industry in South America. This allowed the accident & illness insurance type segment to grow to a market share of 95% in 2020. The main reason restraining the growth is the lack of awareness regarding policies and adoption of street dogs as pets which don’t provide people with a sense of ownership as in the case of legal adoption or purchase of the pets. Snake bites and other such accidents are a common occurrence in the region. This has driven pet owners to opt for the relatively cheaper and necessary option of the insurance policy. While the accident-only segment is barely making any contribution in the market, it is expected to grow at a CAGR of over 27% in the forecasted period. In addition, surge in popularity of pet humanization concept is increasing the demand for pet grooming and care products. Owners, especially millennial, are willing to spend more on their animals to ensure a healthy and secure life.
By animal type, the region has a high preference for dogs, while cats are to have a potential market growth. Urbanization in the region has encouraged people to shift their preferences to cats; however, the trend hasn’t been that effective as South America’s cities have struggled to absorb new arrivals from the countryside. However, the other segment which includes fish, birds among many more are expected to grow over a CAGR of 40% in the forecasted period. As urbanization continues and disposable income rises, more consumers are turning towards pet companionship. As South American people shifted from pet ownership to pet parenthood, opportunities in every pet care segment have increased for any company that wants to capitalize on it. The agency end-user segment accounted for almost half of the market share in 2020. The rise of e-commerce and other technologies have pushed the market on the path of growth. As the ownership of pets is increasing, the segments associated with pet care are also rising, with people are becoming aware of pet health and well-being.
Argentina has the highest pet ownership rates in South America, a whopping 80% of the residents polled reported as pet owners. Brazil comes in at a close second with 75%. Eight out of ten households in Paraguay have at least one pet, while in Peru nearly seven out of ten households have a domesticated animal. Private players tend to supply insurance policies with maximum coverage plans and minimum premium offers. Leading insurance agencies permits various novel pet schemes to retain consumers, which will further foster the market growth in the region.
The COVID-19 pandemic positively impacted the pet insurance market as it significantly propelled the pet adoption rates and pet ownership statistics, considerably increasing the demand for veterinary services. The COVID-19 pandemic created several challenges for the pet insurance industry including animal health companies, veterinary hospitals, veterinarians as well as pet owners. Various government and local regulatory bodies imposed strict lockdown and restricted the movement of the people and goods owing to the surge in the number of COVID-19 cases across the globe.
The imposed lockdown majorly affected the operations and supply chain of the companies operating in the pet care industry and hampered the supply of pet care products. However, a significant upshift was observed in the pet adoption as people were isolated due to the lockdowns, with their social lives largely disrupted. Hence, this led to an increasing demand for pet insurance schemes and services to provide optimum care services for pets at a nominal cost.
Major Companies Present in the market
Nationwide Mutual insurance company, PetFirst pet insurance, Pet Plan limited, Trupanion, RSA Groups, Tokio Marine & Nichido Fire Insurance Co.Ltd.
Considered in the report
• Geography: South America
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027
Aspects covered in the report
• Market Size by Value for the period (2016-2026F)
• Market Share by Animal Type (Cat, Dog & others)
• Market Share by Insurance Type (Accidental and Illness & Accident only endorsement)
• Market Share by End User (Agency, Broker, Bancassurance, Direct writing)
• Market Share by Region
• Market Share by Country
• Market Share by Company
The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.
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