UK Pet Insurance: Market Dynamics and Opportunities

1

Stewart McEwan

Senior Analyst, General Insurance

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UK PET INSURANCE: MARKET DYNAMICS & OPPORTUNITIES

GWP & medical inflation

• The pet insurance market approached GWP of £800m in 2013.

• Market growth primarily driven by premiums increases to cover claims inflation.

• The market GWP is forecast to exceed £1bn by 2016.

Co-insurance :• Regarded as an essential device in the future health of the pet insurance market• provides an alternative to the otherwise spiraling premium rates attached to

policies• Engages owners in the cost decisions concerning their pet’s treatment

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UK PET INSURANCE: MARKET DYNAMICS & OPPORTUNITIES

Cats & dogs

• The overall cat and dog population is expected to sit at 17.7 million

• …However, the dog insurance market is three times the size of the cat market.

• Pet owners aged between 25 and 34 are the most likely to hold either dog or cat insurance

• Improving economic conditions signal opportunities in the market

7.7 million£546m GWP(43.5%)

10 million£172m GWP(21.8%)

UK Pet Insurance: Market Dynamics & Opportunities© Datamonitor. This report is a licensed product. 4

UK PET INSURANCE: MARKET DYNAMICS & OPPORTUNITIES

Improving product take-up

• Product penetration is expected to have only very slowly grown

• Significant improvement in market penetration will require:

o Developing the role of aggregators in the market

o The use of new channels, particularly social media

o Working closer with vets

o Offering flexibility in products.

o Providing reassurance to pet owners

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