A few years ago our toy Yorkie puppy fell off the bed and hit her head 😢.
In the middle of the night, my husband and I had to locate and contact an emergency vet.
Upon admitting Phoebe, our Yorkie, we had to approve a series of tests and procedures and ultimately had to admit our little pup into an incubator of sorts for about 24 hours.
The good news is she fully recovered and didn’t have any long term side effects from the accident.
The bad news? Our vet bill.
It was over $3,200!
Yep, we are talking US dollars here folks. Well, not just dollars, 32+ Benjamin Franklins to be exact 😰.
It wasn’t long after this incident that my husband and I began shopping for pet insurance.
Today, I want to share pet insurance market statistics to show the opportunity for insurance agents to sell these policies to their existing customers.
After an incident like we experienced, purchasing pet insurance was probably the easiest insurance purchasing decision we’ve had to make. And it will also be easy for your policyholders with furry friends.
Money’s best friend: Growth in the number of insured pets will boost industry demand
A Look at Pet Insurance Market Statistics
The Pet Insurance Market is poised to grow in 2019 according to Jack Curran in his Industry Report (OD4612) by IBISWorld titled “Pet Insurance in the US”.
Already during the past 5 years, the pet insurance industry has seen growth of 13.4% reaching revenues of $1 billion in 2018. During the same 5 years, the number of businesses operating in the industry has grown by 5.4% while employee growth of 6.2% has been recognized.
The Pet Insurance industry underwrites insurance policies for pets and pays veterinary costs related to illness or injury.
The primary activities of this industry are:
- Underwriting accident and illness pet insurance policies
- Underwriting accident only pet insurance policies
- Underwriting pet insurance policies with embedded wellness
The primary products & services in this industry are:
- Accident and illness dog policies
- Accident only dog policies
- Cat and other pet insurance policies with embedded wellness
- Dog insurance policies with embedded wellness
- Accident only policies for cats and other pets
- Accident and illness policies for cats and other pets
Key Statistics in the Pet Insurance Industry:
- Revenue: $1.0 billion
- Profit: $117.7 million
- Wages: $96.6 million
- Businesses: 14
- Annual Growth: 18–23 is 7.5%
- Annual Growth: 13–18 is 13.4%
Current Pet Insurance Industry Structure:
- Life Cycle Stage: Growth
- Revenue Volatility: Medium
- Capital Intensity: Medium
- Industry Assistance: Low
- Concentration Level: High
- Regulation Level: Medium
- Technology Change: High
- Barriers to Entry: High
- Industry Globalization: Low
- Competition Level: High
Key demographic variables underlying the industry’s performance are forecast to continue to work in the industry’s favor
Currently, less than 1.0% of pets in the United States are insured. However, this figure continues to rise and provides the basis for sustained industry growth.
Do You Sell Pet Insurance Policies?
If you aren’t already selling pet insurance policies to your clients, you definitely want to consider the idea.
In addition to positive pet insurance market statistics, policies are relatively “easy” to market to existing clients.
Here are a few example ideas of how you can start identifying these opportunities to market pet insurance policies.
- Put out a container of dog treats at your office, take note in your CRM of which customers take a treat (Now you have a list of your customers who you can market coverage too)
- Offer Pet Policies as an up-sell on homeowners and renters insurance policies when the policyholder declares 1 or more pets
- Sponsor a local pet organization such as PAWS and in your marketing material mentioning the sponsorship, mention your pet insurance services and products to capture the attention of those who care about Pets
These are just a few ideas for identifying pet owners and naturally starting a conversation around insuring their pets.
Get creative! I’m sure you can think of many great ways to market pet insurance. I can already see some of your eyes lighting up with marketing ideas 💡 such as Facebook Polls, blog posts and more.
Take Advantage of These Pet Insurance Market Statistics
Learning about these pet insurance market statistics and just how good the market demand is for selling pet insurance policies, is exciting, to say the least.
So, now it is your turn to get out there and market some pet insurance. You got this!
Any questions? Let’s chat in the comments below.