Opportunities for puppy and kitten insurance

Whereas in Europe the pet insurance industry market penetration is around 10%, in the US it is below 3%. However, it is expected that there will soon be a growing interest among pet parents to take out insurance for their beloved pets.

Already, some companies have experienced a considerable increase in the demand for insurance for young animals, but, so far, precise data and numbers are lacking.

Double digits for both dog and cat insurance?

Luis Manuel Halcó, CEO of Spanish pet insurance company Petplan, confirms that the number of puppy health insurances increased significantly over 2020 and 2021, and is expected to go into the double digits over the next 10 years.

The number of insurances for kittens is, and will, remain lower than for puppies, as global feline pet insurance represents less than 20% of the market.

Expectations are also optimistic for the US, according to Kristen Lynch, Executive Director of the North American Pet Health Insurance Association (NAPHIA). The humanization of pets – accelerated by the pandemic – will be the key driver. But it is yet to be seen how inflation may impact companies in the sector.

Age is the key

Age is considered a prime indicator for insurance costs. Not surprisingly, as when dogs or cats get older potential health risks are greater. Pet parents will have to pay for covering higher age-related costs.

“Generally speaking, a younger animal is likely to have a lower insurance premium compared to a similar, but older pet,” comments Bob Capobianco, Senior Vice President, Crum & Forster Pet Insurance Group. From age 2 to 3 onwards, insurance premiums are more expensive. Pet parents are therefore usually advised to take out insurance in the early years of their pet’s life.

Pet parents – looking to cover health-related costs

There appears to be a genuine interest among pet parents to insure their kittens and puppies. “In this respect, it is interesting to see that volume of searches on Google regarding puppy insurance has increased by 61% in 2020 compared to the previous year,” remarks Halcó.

Although it is still too early to draw any conclusions, this increased interest could have a positive impact on insurance companies. After all, small animals are low-risk patients and rarely have major health issues. They are therefore less likely to use the services provided.