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UK Pet Insurance: Market Dynamics and Opportunities 2018

UK Pet Insurance: Market Dynamics and Opportunities 2018


This report analyzes the UK pet insurance market, looking at market size as well as changes in premiums, claims, medical costs, pet ownership, and opportunities. It discusses competitors in the market, how the market is likely to change due to rising costs and emerging technology, and provides future forecasts of market size up to 2022.

The UK pet insurance market experienced another year of growth in 2017, with total market gross written premiums (GWP) of £1,190m - an increase of 13.8% compared to 2016. The number of policies also grew considerably by 10.9% to reach 3.76 million. Yet there is still considerable potential for further growth as the majority of pets in the UK remain uninsured. Medical inflation remains one of the main driving forces behind the increase in GWP, with insurers passing on the cost to policyholders. The sustainability of premium increases endures as this market’s greatest challenge and threat.


  • The dog insurance market represents the largest percentage of the total pet insurance market. With the UK population of cats and dogs estimated to be similar in size, product uptake appears to be lowest in the cat market, while premiums are higher in the dog market.
  • The increasing cost of pet healthcare is likely to drive growth within the market. Uninsured owners will feel the squeeze, resulting in an increase in uptake as owners begin to realize the benefits of insurance.
  • Insurers could look to other markets such as health insurance in order to develop solutions to combat the rising cost of claims. Technological developments such as wearable devices offer a major opportunity.
Reasons to buy
  • Keep up to date with the new trends and innovations in the market.
  • Benchmark yourself against competitors.
  • Learn about growth in all aspects of the market, what is driving it, and whether it looks set to continue.

1.1. Market summary
1.2. Key findings
1.3. Critical success factors
2.1. The UK pet insurance market continued to grow in 2017
2.1.1. UK pet insurance GWP reaches its highest point
2.1.2. Another year of growth for the number of policies written
2.2. The gross cost of claims continues on its upward trend
2.2.1. Further advancements in treatments are fueling an increase in the cost of claims
2.2.2. Veterinary salaries have had little impact on the cost of claims
2.2.3. The average claim varies considerably depending on the type of pet
2.3. Summary of the current market
2.4. The UK pet population has increased in 2018
2.4.1. The number of households with at least one pet has also risen
2.4.2. Obesity within the UK pet population is a hidden problem
3.1. There has been little change in terms of the dominant players
3.1.1. Allianz and RSA remain the main players in the market
3.1.2. Bought By Many brings a new approach to the market
3.1.3. Animal Friends also aims to streamline the claims process
3.2. The market leaders have the greatest marketing expenditure
4.1. The market is set to continue growing
4.1.1. Total market GWP is forecast to reach £1.7bn in 2022
4.1.2. Policy numbers will continue rising
4.2. The claims landscape will become increasingly challenging
4.2.1. Dog insurance claims are forecast to increase through to 2022
4.2.2. Cat insurance
4.2.3. The number of claims is expected to fall for other pet-related claims
4.3. Other markets could hold the answer to reducing claims
4.3.1. Health insurance products could be replicated by pet insurers to reduce claims
4.4. Different avenues could be utilized to increase product uptake
4.4.1. Pet insurance in the US is becoming an increasingly popular employee benefit
4.4.2. Social media could allow insurers to target the uninsured and educate owners
5.1. Abbreviations and acronyms
5.2. HHI
5.3. Forecasting methodology
5.4. Bibliography
List of Tables
Table 1: UK pet insurance market GWP, 2013-17
Table 2: Indicators of competition within the pet insurance market
Table 3: Historical claims data, 2013-17
Table 4: Average claims cost by pet, 2013-17
Table 5: Breakdown of the pet insurance market by product, 2017
Table 6: More Than’s pet insurance products
Table 7: The size of the pet insurance market (£m), 2018f-22f
Table 8: Number of policies by pet type, 2018f-22f
Table 9: The cost and number of claims within the total pet insurance market, 2018f-22f
Table 10: The cost and number of claims within the dog insurance market, 2018f-22f
Table 11: The cost and number of claims within the cat insurance market, 2018f-22f
Table 12: The cost and number of claims within the other pet insurance market, 2018f-22f
List of Figures
Figure 1: UK pet insurance GWP continues to grow
Figure 2: The total number of policies written grew again in 2017
Figure 3: There were over twice as many dog insurance policies written as cat policies in 2017
Figure 4: Dog insurance accounted for over three quarters of total market GWP in 2017
Figure 5: The gross cost of claims increased by £252m over the review period
Figure 6: In 2017 the number of claims increased at the fastest rate of the last five years
Figure 7: Cats have the lowest average claims cost
Figure 8: Dog insurance accounts for over 60% of all four statistics
Figure 9: There is considerable potential for growth throughout the pet market
Figure 10: Owners are open to using technology to monitor their pets
Figure 11: Animal Friends spends over twice as much as its nearest rival on marketing
Figure 12: The market will exceed £1.5bn in the next two years
Figure 13: The number of policies is forecast to increase by over 500,000 in the next five years
Figure 14: The total cost of claims is forecast to continue rising
Figure 15: The dog insurance claims landscape is set to become increasingly challenging
Figure 16: Cat insurers will be faced with an increasingly costly market
Figure 17: The average cost of “other” pet claims will rise despite a decreasing number of claims
Figure 18: Forecasting methodology

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