Summary
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.
Scope
- 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.
Companies Discussed are -
Table Of Content
Table of Contents
1. EXECUTIVE SUMMARY 2
1.1. Market summary 2
1.2. Key findings 2
1.3. Critical success factors 2
2. THE PET INSURANCE MARKET 7
2.1. The UK pet insurance market continued to grow in 2017 7
2.1.1. UK pet insurance GWP reaches its highest point 7
2.1.2. Another year of growth for the number of policies written 9
2.2. The gross cost of claims continues on its upward trend 12
2.2.1. Further advancements in treatments are fueling an increase in the cost of claims 12
2.2.2. Veterinary salaries have had little impact on the cost of claims 14
2.2.3. The average claim varies considerably depending on the type of pet 15
2.3. Summary of the current market 16
2.4. The UK pet population has increased in 2018 18
2.4.1. The number of households with at least one pet has also risen 18
2.4.2. Obesity within the UK pet population is a hidden problem 20
3. COMPETITOR PROFILES 22
3.1. There has been little change in terms of the dominant players 22
3.1.1. Allianz and RSA remain the main players in the market 22
3.1.2. Bought By Many brings a new approach to the market 23
3.1.3. Animal Friends also aims to streamline the claims process 24
3.2. The market leaders have the greatest marketing expenditure 24
4. THE FUTURE MARKET 26
4.1. The market is set to continue growing 26
4.1.1. Total market GWP is forecast to reach £1.7bn in 2022 26
4.1.2. Policy numbers will continue rising 27
4.2. The claims landscape will become increasingly challenging 29
4.2.1. Dog insurance claims are forecast to increase through to 2022 31
4.2.2. Cat insurance 33
4.2.3. The number of claims is expected to fall for other pet-related claims 34
4.3. Other markets could hold the answer to reducing claims 36
4.3.1. Health insurance products could be replicated by pet insurers to reduce claims 36
4.4. Different avenues could be utilized to increase product uptake 37
4.4.1. Pet insurance in the US is becoming an increasingly popular employee benefit 37
4.4.2. Social media could allow insurers to target the uninsured and educate owners 37
5. APPENDIX 38
5.1. Abbreviations and acronyms 38
5.2. HHI 38
5.3. Forecasting methodology 39
5.4. Bibliography 39
Table & Figure
FAQ's
Methodology
Identifying Key Products in the Market
- The identification of key products in any market is pivotal for understanding what drives consumer interest, technological innovation, and competitive advantage. Here’s how to approach this:
- Market Analysis Reports: Start with syndicated market analysis reports from firms like Nielsen, Euromonitor, or specialized industry analysts. These reports often highlight leading products based on sales data, innovation, and consumer feedback.
- Patent Filings: Reviewing patent filings can provide insight into technological innovations and future products that may impact the market. Databases like the United States Patent and Trademark Office (USPTO) or the World Intellectual Property Organization (WIPO) can be invaluable.
- Ecommerce Platforms and Retailer Websites: Analyzing bestselling products and customer reviews on platforms such as Amazon, Flipkart, or direct retailer websites can offer direct insights into consumer preferences and product popularity.
- Consumer Surveys and Feedback: Conducting surveys or analyzing online forums and social media can reveal consumer preferences, pain points, and desired features in products. Tools like SurveyMonkey, Google Surveys, or social listening platforms can facilitate this process.
Segmenting the Market and Products
- Market and product segmentation is crucial for targeting marketing efforts and product development. Here’s a methodology for segmenting based on technical specifications:
- Technical Specifications Review: Compile a comprehensive list of products within the market, focusing on their technical specifications. This could involve processor speeds for electronics, ingredients for food products, or material composition for apparel.
- Factor Analysis: Use statistical techniques like factor analysis to group products based on shared technical specifications. This method helps identify underlying relationships between different specifications and how they cluster together.
- Expert Consultation: Engage with industry experts or technical specialists to ensure that the segmentation makes sense from both a market and a technical perspective. This step ensures the practical relevance of the segments identified.
Identifying and Classifying Key Application Segments
- Understanding how products are used in different applications is essential for market strategy:
- Use Case Analysis: Identify common use cases for products by reviewing product literature, customer testimonials, and case studies. This helps understand the variety of applications each product serves.
- Industry Surveys: Conduct surveys targeting professionals in the field to understand how and why certain products are preferred in specific applications. This can also reveal unmet needs in the market.
- ApplicationBased Segmentation: Group products based on their primary applications, considering factors such as industry use, consumer vs. professional use, and environmental conditions.
Calculating Market Size Using TopDown and BottomUp Approaches
- Estimating the market size accurately is fundamental for strategic planning:
- TopDown Approach: Start with global industry data and narrow down to the target market by applying known market shares or segmentation percentages. Industry reports and financial databases are key sources for this approach.
- BottomUp Approach: Aggregate sales data or unit shipments from all known market participants. This might require gathering data from company reports, industry associations, and sales channels.
- Combining Approaches: Validate the market size estimates by comparing the results from both approaches. Discrepancies can highlight areas requiring further investigation.
Calculating the CAGR for the Market
- The Compound Annual Growth Rate (CAGR) is a useful measure to understand market growth over time:
- Historical Sales Data: Gather historical sales or market size data over a defined period. Public company filings, industry reports, and government databases can be sources for this data.
- CAGR Formula: Apply the CAGR formula \[CAGR = (EV/BV)^{1/n} 1\], where EV is the end value, BV is the beginning value, and n is the number of periods.
- Segment and Overall Market CAGR: Calculate CAGR for both the overall market and individual segments to understand growth patterns.
Sources for Secondary or Desk Research
- Identifying the right sources is crucial for accurate desk research:
- Industry and Market Research Reports: Sources like IBISWorld, Statista, and Frost & Sullivan offer comprehensive industry reports.
- Government and International Organizations: Websites of the U.S. Census Bureau, World Bank, and OECD provide economic and industry specific data.
- Academic Journals: Platforms like Google Scholar and JSTOR can offer peer reviewed articles on market trends and consumer behavior.
- News Archives and Trade Publications: Stay informed on industry developments through sources like Bloomberg, Reuters, and specific trade journals relevant to the market in question.
- Each of these steps requires careful consideration and a systematic approach to ensure that the market research report is robust, insightful, and actionable.
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