From niche to mainstream: the Asian pet insurance market

With pets increasingly considered family members, especially among the younger, urban generation in Asia, the continent has become a fast-growing market for pet insurance, even though penetration remains far below that of mature markets such as Europe and parts of Oceania.

Opportunities and challenges

According to a survey conducted by research firm Exactitude Consultancy in late 2024, Asia-Pacific’s pet insurance market is projected to grow by 18% in the next decade. Growth is likely to be propelled by economic development, rising pet adoption and more awareness of veterinary health, combined with improvements in healthcare infrastructure.

Anirudh Somani, Chief Product Officer at 360F, a Singapore-based technology firm that provides insurers and banks with AI-driven solutions, describes market progression as “an early S-curve” marked by rapid awareness gains, heavy product experimentation and many first-time buyers. “It is protection against unpredictable vet bills and assurance of having access to advanced care. Emotional peace of mind is a strong motivator,” Somani tells PETS International. He adds: “Asia is moving from, ‘Should I insure my pet?’ to ‘Which health plan feels right for my pet?’”

According to him, the winners in Southeast Asia will be “those who go mobile-first, bundle real everyday value such as tele-vet services and pet wellness programs, partner with pet shop and pet care providers, and explain insurance coverage transparently”.

The widespread use of smartphones in Asia makes insurance policy offers readily available in minutes. It also makes claims handling and processing faster through the utilization of apps.

Keeping tabs on uptake

Mature markets in the region include countries like Japan, where awareness of pet insurance is the highest and an established vet ecosystem is in place. China and Southeast Asia are showing signs of rapid growth.

The former because of its enormous pet base and its consumers’ digital habits and the latter as a result of increasing vet service availability and awareness, despite the current low penetration.

One of the challenges for pet insurers across the region is low insurance literacy in emerging markets. There is also an uneven veterinary infrastructure, as well as price sensitivity for pet owners who live in less urbanized areas.

Smaller urban markets

In Thailand and the Philippines, market growth is still concentrated in dense urban pet clusters. There are opportunities for insurers to forge more partnerships with vet clinics in the Thai cities Bangkok or Chiang Mai, and for combining tele-vet with select clinic networks to mitigate access gaps in Filipino cities such as Manila and Cebu.

There is a small but premium market in Singapore, where awareness of this type of insurance is also propelled by liability requirements for certain breeds that the country’s Animal and Veterinary Service considers aggressive or potentially dangerous. A requirement like this is an exception in the region – pet insurance is still voluntary in other Southeast Asian countries.

Changing Indonesian lifestyles

The cultural shift regarding pets is also evident in Indonesia. As pet ownership becomes part of the Indonesian lifestyle in this country of over 270 million people, which has a fast-growing middle class, it represents one of the largest potential markets in Asia. But pet insurance is still relatively new there, with a handful of insurers entering the market in the mid-2010s.

“As the middle class expands and disposable income rises, pet parents are willing to invest more in their pet’s health and wellbeing. Pet insurance is seen as a natural extension of this trend, although pet parents’ growing interest in insuring their pets is still in the early stages,” says Budi Herawan, Chair of the Indonesian General Insurance Association (AAUI).

Herawan says the number of households with cats and dogs has been increasing steadily, showing signs of growth potential for the pet insurance market even though penetration is still very low compared to developed markets in the region. “Once awareness and accessibility improve, it could follow the path seen in other Asian markets,” he adds.

While not yet fully developed, Indonesia’s pet insurance sector holds promising prospects – with the right balance of public education, innovative product design and collaboration between insurers and veterinary providers. Coverage typically includes accidental death, medical expenses, theft and third-party liability.

Growing awareness

AXA Insurance Indonesia launched its pet insurance nearly 10 years ago. It offers a comprehensive protection solution for pet owners, particularly dogs and cats, with official certification from the Indonesian Kennel Club PERKIN and the Indonesian Cat Association.

Edwin Sugianto, Director of AXA Insurance Indonesia, says: “We have seen a growing awareness among pet owners of the importance of medical protection and legal responsibility. Many have started looking for solutions for accidents or illnesses. This pet insurance product meets their need for security and certainty in dealing with unexpected risks.”

He adds: “In Asia, countries such as Japan and South Korea have already widely adopted this product, proving that the need for financial protection for pets is not a temporary trend but part of a modern lifestyle.”

AXA Insurance’s pet insurance product has recorded more than 32 policies. This is a “positive first step” in building the current market, according to Sugianto.

Market indicators in Indonesia

AXA’s strategic approach when it comes to pet insurance is based on several market indicators that point to the large potential in the country. These include the increasingly active dog and cat communities on social media and at offline events, as well as the rapid growth of veterinary clinics and pet shops in major cities.

“The main challenges in Indonesia are low insurance literacy and the absence of specific regulations on pet insurance. In addition, not all pets have official certification, which is one of the main requirements in our policy,” explains Sugianto.

Pet insurance players are also looking to strengthen their collaboration with regulators in order that they increase the support given to pet protection.

DTC pet insurance

Igloo first launched pet insurance in the region in 2022 in the Philippines, through Pet Insure for dogs, which is now available on the GCash app in partnership with Malayan Insurance. In October 2024, the company expanded its offering by adding pet insurance to its DTC platform in Indonesia.

Delta Andreansyah, Head of B2C Indonesia at Igloo, says the strategic rationale for investing in pet insurance is the rising trend of pet adoption and spending on pets. According to a Kantar survey in 2024, 94% of Filipino households own pets. This combination creates an untapped and under-penetrated market that can be served through digital distribution.

Andreansyah says: “Market potential is significant. Asia-Pacific pet insurance revenues are already estimated to be in the multi-billion-dollar range and forecast to grow at mid-teens CAGRs. According to Grand View Research, the pet insurance market in Asia-Pacific is projected to reach a revenue of $9.7 billion (€8.3B) by 2030.”

Insuring pet travel in Hong Kong

Asia’s young demographic is the main target group for pet insurance and it provides a niche segment for Prudential Hong Kong, which has introduced a pet protection scheme to add to its travel insurance offer.

A recent travel insurance survey commissioned by Prudential shows that pet owners want to ensure proper care for their pets as part of their travel plans. This is a key consideration, as the concept of pet-inclusive traveling is growing with the rise of pet-friendly communities.

In June, the company announced that it has added new features to cover trip cancelation or added expenses if the accompanying pet becomes ill or injured – a product benefit that it says is a first in the market. Pet parents can claim on their policy if the insured pet passes away or requires surgery or confinement at a licensed vet clinic or hospital.

As pet insurance evolves across the region, more targeted products such as these can be anticipated as part of a wider market expansion.