United Kingdom (UK) Pet Insurance - Market Dynamics and Opportunities 2020

United Kingdom (UK) Pet Insurance - Market Dynamics and Opportunities 2020

Summary

This report analyzes the UK pet insurance market, looking at market size as well as changes in premiums, claims, medical costs, and pet ownership. It discusses competitors in the market, explores how the market is likely to change due to rising costs and emerging technology, identifies opportunities in the pet insurance space, and provides future forecasts of market size up to 2023.

Both the number of policyholders and gross written premiums (GWP) decreased in 2019, while the number and cost of claims increased. With the cost of claims increasing and GWP falling, pet insurers are facing stains on their profits.

Scope

  • Accounting for 74% of the market, dog insurance drove the decline in GWP for 2019 with a 7.2% decrease in policyholders. This came despite a £12 reduction in average premiums.
  • The average cost of dog and cat claims was £830 and £643 respectively in 2019.
  • Underwritten by Allianz, Petplan remains the market leader with 24.9% of total GWP. Petplan has maintained its position through high advertising spending.
  • Going forward, growth in the market will be slow, with both number of claims and premiums increasing. The market is expected to reach GWP of £1,310m in 2024, up from £1,171m in 2019 at a compound annual growth rate (CAGR) of 2.3%.
Reasons to Buy
  • Keep up to date with the new trends and innovations in the pet insurance market.
  • Benchmark yourself against competitors.
  • Learn about growth in all aspects of the market, what is driving it, and whether it is set to continue.


  • Executive Summary
    • The pet insurance market contracted for the first time
    • Key findings
    • Critical success factors
  • Pet Insurance Market Dynamics
    • Summary of the 2019 pet insurance market by product
      • Table Breakdown of the pet insurance market by product, 2019
    • The UK pet insurance market contracted in 2019
      • Falling numbers of policyholders and premiums led to a contraction in GWP in 2019
        • Table Figure 1: GWP growth in the UK pet insurance market dropped for the first time in 2019
        • Table UK pet insurance market GWP, 2014–19
      • The number of pet insurance policyholders continued to fall in 2019
        • Table Figure 2: The number of policyholders in the pet insurance market continued to fall in 2019
        • Table Figure 3: The majority of pet insurance policyholders have dog insurance
      • GWP is dominated by dog insurance
        • Table Figure 4: Dog insurance dominates the market
      • Average premiums vary by type of pet
        • Table Figure 5: Average premiums for dogs and other pets have been decreasing for the past two years
    • The gross cost of claims has continued on an upward trend despite a fall in frequency
      • The number of claims notified increased
        • Table Figure 6: There was a slight increase in pet claims in 2019 compared to 2018
      • Gross claims in the pet insurance market increased
        • Table Figure 7: The cost of claims has increased by £212m since 2014
        • Table The claims landscape in the pet insurance market, 2014–19
      • Technology remains a double-edged sword for the industry
      • Veterinary salaries have had little impact on the cost of claims, but this will change
      • The average claim varies considerably depending on the type of pet
        • Table Figure 8: The average claims cost is much lower for cats
        • Table Average claims cost by pet, 2014–19
    • The proportion of dogs and cats in UK households has decreased
      • Both the number of cat and dog pets has decreased in the UK
      • The potential size of the pet insurance market is almost three times its current value
        • Table Figure 9: There is considerable potential for growth throughout the pet market
      • Obesity within the UK pet population is an increasing problem
        • Table Figure 10: There remains some hesitation about the use of tracking technology to monitor pets
  • Competitor Dynamics
    • The structure of the UK pet insurance market
      • Allianz is the market leader, largely because of sales through the Petplan brand
        • Table Figure 11: Allianz underwrites the majority of premiums in the pet insurance market
        • Table Figure 12: Allianz also underwrites the greatest number of contracts
      • The top three providers continue to have very similar offerings
        • Table Petplan's pet insurance products
        • Table Animal Friends' pet insurance products
        • Table Tesco Bank's pet insurance products
      • Virtual veterinarian services are on the rise
      • Sainsbury's launches new lifetime pet insurance products and services
      • Bought By Many continues to deliver the most innovate policies in the pet market
      • Waggel partners with FirstVet
    • The leading players have the greatest marketing expenditure
      • Table Figure 13: More Than spent the most on pet insurance advertising in 2019
  • The Market Going Forward
    • The market is set to continue growing
      • Total market GWP is forecast to reach £1.3bn in 2024
        • Table Figure 14: The market is expected to grow over the forecast period, albeit at a low rate
        • Table The split of the pet insurance market, 2019–24f
      • Policy numbers will fall slightly
        • Table Figure 15: The number of pet insurance subscribers will remain constant at around 3.4 million
        • Table Forecasted number of pet insurance policyholders by pet type, 2019–24f
    • The cost of claims will continue to increase
      • Table Figure 16: The total cost of claims will continue rising
      • Table The cost and number of claims within the total pet insurance market, 2019–24f
      • Dog insurance claims incurred will reach £847m by 2024
        • Table Figure 17: Dog insurance claims will cost the industry £847m in 2024
        • Table The cost and number of claims within the dog insurance market, 2019–24f
      • Cat insurance gross claims incurred will reach £157m by 2024
        • Table Figure 18: Cat claims will cost insurers an average of £718 in 2024
        • Table The cost and number of claims within the cat insurance market, 2019–24f
      • The number of claims is expected to fall slightly in the other pet segment
        • Table Figure 19: The average cost of other pet claims will rise despite a decreasing number of claims
        • Table The cost and number of claims within the other pet insurance market, 2019–24f
    • Reducing costs will be key for pet insurers
      • Pet insurers should replicate innovation seen in the private medical insurance market
      • Blockchain can reduce costs and improve the customer experience
      • Social media could allow insurers to target digital-savvy individuals and educate pet owners
  • Appendix
    • Abbreviations and acronyms
    • Methodology
      • Competitor rankings
      • 2019 UK Insurance Consumer Survey
      • Forecasting methodology
        • Table Figure 20: Forecasting methodology
    • Secondary sources
    • Further reading
    • About GlobalData
      • Table Figure 21: About GlobalData

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