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Pet Insurance in North America, 5th Edition - Product Image

Pet Insurance in North America, 5th Edition

  • ID: 2811446
  • September 2013
  • Region: America, North America, United States
  • 246 Pages
  • Packaged Facts
North American Pet Insurance Revenue Up 15%

FEATURED COMPANIES

  • Embrace Pet Insurance
  • Hartville Group, Inc.
  • PetFirst Healthcare LLC
  • Pethealth, Inc.
  • PetPartners, Inc.
  • Petplan (Fetch, Inc.)
  • MORE

Now in its fifth edition, Pet Insurance in North America is the most comprehensive examination of the U.S. and Canadian pet insurance markets available and a must-have for any company interested in this dynamic industry.

Revenues (measured as gross written premiums) remained in the double digits in 2013, while showing robust growth over the previous five years, recession notwithstanding. Packaged Facts expects the North American market for pet insurance to continue to chart strong annual gains over the next five years, with the high level of competitive activity generating increased awareness and demand among pet owners.

Industry pioneer Veterinary Pet Insurance (VPI) continues to lead the market. However, both the U.S. and the Canadian pet insurance markets have experienced significant market share shifts during the past five years as newer entrants have gained traction and made huge inroads into the business. The industry has been good to new entrants including Trupanion, PetPlan and PetFirst, while two smaller players - PurinaCare and PetSafe - have left the scene (with PurinaCare's policies acquired by Pethealth). The industry has also seen some changes in ownership READ MORE >

North American Pet Insurance Revenue Up 15%

FEATURED COMPANIES

  • Embrace Pet Insurance
  • Hartville Group, Inc.
  • PetFirst Healthcare LLC
  • Pethealth, Inc.
  • PetPartners, Inc.
  • Petplan (Fetch, Inc.)
  • MORE

Chapter 1: Executive Summary

- Introduction
Scope of Report
Report Methodology
Market Analysis
Consumer Analysis
- Market Trends
North American Market Growth Continues
Figure 1-1: Projected North American Pet Insurance Market Revenues:
United States, Canada, and North America, 2013 vs. 2018 (in millions of U.S. dollars)
Number of Policies in Force
Cautiously Optimistic Consumers
Table 1-1: Economic Outlook of U.S. Pet Households: 2009 vs. 2013
Vet Costs Rising
Veterinarians Increasingly Supporting Pet Insurance
Consumers Aware But Some Confused
Getting the Word Out
Pet Health Insurance Month
- Competitive Overview
Top North American Marketers
A New Ball Game
Figure 1-2: Pioneers vs. Upstarts—Change in North American Pet Insurance Market, 2005-2013
Four Main Distribution Channels
The Underwriting Advantage
Pethealth Buys PurinaCare's Pet Insurance Assets
Protect Your Bubble Crosses the Ocean
Pets Plus Us Debuts in Canada
PetPremium Enters the Fray
Walmart Throws Hat in Ring
Cross Border Activity Intensifies
Myriad Competitive Payment Options
- Consumer Trends
Growth in Pet Households Outpacing Overall Household Growth
Figure 1-3: Household Ownership Rates for Selected Pet-Owning
Classifications, 2013 (percent of U.S. households)
Penetration Rates for Pet Insurance
Awareness of Pet Insurance
Top Reasons for Never Having or Discontinuation of Pet Insurance Policies

Chapter 2 Highlights
Chapter 2: Market Trends

- Introduction
Market Definition
Equine Insurance Excluded
Range of Coverage
Typical Restrictions
Gross Written Premiums and Conversion Rates
- Market Size and Composition
North American Market Growth Continues
Table 2-1: North American Pet Insurance Market Revenues: United States, Canada, and North America, 2005-2013 (in millions of U.S. dollars)
Figure 2-1: Share of North American Pet Insurance Market: United States vs. Canada, 2002-2013 (percent)
Number of Policies in Force
Figure 2-2: North American Pet Insurance Market: Number of Pet Insurance
Policies in Force, 2005-2013 (in thousands)
Share of Policies by Animal Type
Figure 2-3: Share of U.S. Pet Insurance Market Revenues by Animal Type, 2013 (percent)
- Market Outlook
Cautiously Optimistic Consumers
Table 2-2: Selected U.S. Economic Measures: 2008-2013 (percent and number in millions)
Pet Owners Still Spending Less
Table 2-3: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2013 (percent)
Table 2-4: Economic Mood of U.S. Pet Households: 2009 vs. 2013
Table 2-5: Economic Outlook of U.S. Pet Households: 2009 vs. 2013
Table 2-6: Percentage of Dog and Cat Owners Who Have Visited
Vet in Past Year: Routine Checkup vs. Sick/Emergency Care, September 2011 vs. March 2012
Vet Costs Rising
Table 2-7: Average U.S. Household Expenditures on Veterinary Services, 1998-2011 (in dollars)
Veterinarians Increasingly Supporting Pet Insurance
Figure 2-4: Percentage of Veterinarians Who Would Like to See Wider
Use of Pet insurance by Year of Veterinary School Graduation
Consumers Aware But Some Confused
Getting the Word Out
Pet Health Insurance Month
Illustration 2-1: Pets Plus Us "Proof Positive Photo Contest," during
Pet Health Insurance Month, September 2013
North American Pet Health Insurance Association (NAPHIA)
Pets as Family Trend Continues
Table 2-8: Pet Owner Attitudes and Behavior Characterizing
Human/Animal Bond, 2013 (percent)
Human/Animal Bond Bolsters Pet Health/Wellness Spending
Table 2-9: Level of Veterinary Expenditures by Human-Animal Bond and Animal Type, 2011 (mean dollar per household)
Table 2-10: Mean Number of Veterinary Visits: By Human/Animal Bond Among Dog and Cat Households, 2011
Figure 2-5: Level of Agreement with Statement: “I buy pet supplements and/or functional treats to make doubly sure that my pet gets all the special nutrition it needs,” 2012 (percent)
Pet Ownership and Population Trends
Table 2-11: APPA's Total Number of Dogs and Cats in the United States: By Type, 2000-2012
Table 2-12: Changes in the U.S. Population and Pet-Owning Population, 1996-2012 (number and percent)
Table 2-13: Household Penetration Rates for Selected Dog- or Cat-Owning
Classifications: 2007-2012 (percent of U.S. households)
Table 2-14: Dog or Cat Ownership Rates by Age Bracket: 2007-2012 (percent of U.S. households)
Shoppers Buying More Pet Products Online
Figure 2-6: Level of Agreement with Statement: “I am buying pet products online more than I used to,” March 2012 vs. March 2013 (percent)
Figure 2-7: Time Frame for Most Recent Online Purchase of Pet Products,
March 2013 (percent of pet owners)
Table 2-15: Selected Internet-Related Psychographics: Dog Owners vs.
Cat Owners vs. Other Pet Owners, 2013 (percent and index)
Table 2-16: Age of Dogs and Cats, 2013 (percent of pet owners)
Figure 2-8: Percentage of Dogs and Cats Age 6 and Over: 1987 vs. 2011 (percent)
Table 2-17: Percentage and Number of Overweight and Obese Dogs and Cats, 2012
Figure 2-9: Level of Agreement with Statement: “I have an overweight pet,” 2013 (percent)
Increased Competition
Credit Card Usage Shows Big Drops
Table 2-18: Credit Card Ownership and Usage: By Frequency, 2008-2013 (percent)
Looking Ahead
Figure 2-10: Projected North American Pet Insurance Market Revenues:
United States, Canada, and North America, 2013 vs. 2018 (in millions of dollars)

Chapter 3 Highlights
Chapter 3: Competitive Overview

- Market Share Trends
Top North American Marketers
Table 3-1: Estimated Share of North American Pet Insurance Market: By Company, 2005-2013 (percent)
Figure 3-1: Estimated Share of North American Pet Insurance Market, 2013 (percent)
Table 3-2: Estimated Share of U.S. Pet Insurance Market: By Company, 2005-2013 (percent)
Table 3-3: Estimated Share of Canadian Pet Insurance Market: By Company, 2005-2013 (percent)
- Competitive Trends
A New Ball Game
Figure 3-2: Pioneers vs. Upstarts—Change in North American Pet
Insurance Market, 2005-2013
Consistent Marketing Messages
Four Main Distribution Channels
The Underwriting Advantage
Pethealth Buys PurinaCare's Pet Insurance Assets
Illustration 3-1: PurinaCare Screenshot, captured August 15, 2013
PetSafe Enters, Quickly Exits
Illustration 3-2: 2011 Ad for PetSafe's Sporting Dog Insurance
Protect Your Bubble Crosses the Ocean
Illustration 3-3: Screenshot of Protect Your Bubble USA TV ad, uploaded April 24, 2012
Pets Plus Us Debuts
PetPremium Enters the Fray
Illustration 3-4: Facebook photo of PetPremium cake at company's visit to Hartville, September 27, 2013
Walmart Throws Hat in Ring
Illustration 3-5: Screenshot of Walmart Pet Health Insurance website, captured August 27, 2013
Cross Border Activity Intensifies
Illustration 3-6: PetFirst Canada notice, as of August 16, 2013
British Software Invasion
Review and Comparison Sites Driving Awareness, Business
Illustration 3-7: Pet Insurance Guide podcast image
Insurers Embrace Social Media
Table 3-4: Social Media Activity in the Pet Insurance/Healthcare Payment Arena, 2013
The Industry Gets Interactive
Illustration 3-8: Screenshot of interactive map supplement to “Pet Insurance
Conversations” article from Veterinary Economics, May 2013
Employees Benefit from Pet Insurance
Illustration 3-9: VPI ad in Society for Human Resource Management
2013 Annual Conference & Exposition publication, June 2013
Myriad Payment Options
CareCredit
Illustration 3-10: Ads for CareCredit on The Animal Hospital at
Southwood, Anasazi Animal Clinic and the Clinton Animal
Care Center websites, captured August 19, 2013
Illustration 3-11: CareCredit tablet app for veterinary practices
Citi Health Card
PetCard
Illustration 3-12: Petcard ad on Kamloops Veterinary Clinic website, captured September 15, 2013.
ChaseHealthAdvance Leaves Scene
Illustration 3-13: ChaseHealthAdvance ad from the April 2012 issue of Veterinary Practice News, just before it stopped accepting new applications and transactions.
Illustration 3-14: The ChaseHealthAdvance website, just before it closed shop for good; screenshot captured August 19, 2013.
Pet Assure
Illustration 3-15: Pet Assure's Groupon offer, July 2013.
United Pet Care
Banfield
Illustration 3-16: Banfield sweepstakes on Facebook
Pet Savings Accounts
Illustration 3-17: Ad for Pet Savings Account from Isabella Community Credit Union, run on May 8, 2013 in Mt. Pleasant (MI) Morning Sun
Illustration 3-18: West Bend Mutual Insurance TV ad

Chapter 4 Highlights
Chapter 4: Competitor Profiles

- Competitor Profile: Embrace Pet Insurance
Background
Embrace's Brands
Core Values
Marketing Strategies
Illustration 4-1: Embrace Branded Car, September 2013
Online Activity
Healthy Pet Deductible
Plan Changes
- Competitor Profile: Hartville Group, Inc.
Company Overview
Types of Plans
Management Shakeup Yields Growth
ASPCA Venture Going Strong
Illustration 4-2: ASPCA Pet Insurance Ad in Veterinary Practice News (April 2013)
Hartville Premiums Rise
Table 4-1: Hartville Group Gross Written Premiums, 2001-2013 (in millions of U.S. dollars)
Table 4-2: Hartville Group Number of Active Policies, 2001-2013
Marketing Focus
Illustration 4-3: ASPCA Pet Insurance Facebook contest (July 2013)
Increased Focus on Veterinary, Company Benefits Channels
Competitor Profile: Healthy Paws Pet Insurance
Company Overview
Profits with Purpose
Simplicity Wins
Change in Underwriters
Alternative Medicine Added
Backing from a Leading Brokerage
Marketing and Customer Care
Illustration 4-4: Healthy Paws Internet banner ad
- Competitor Profile: PetFirst Healthcare LLC
Company Overview
New Insurance Plans
Company Strategy
Kroger Connection Ends
PetFirst Inks Continental Kennel Club Deal
Illustration 4-5: PetFirst ad on partner Continental Kennel Club's site, captured August 29, 2013
The Petfinder.com Connection
The HomeAgain Partnership
Illustration 4-6: PetFirst—HomeAgain landing page
PetFirst Looks to Grow Employee Benefits Business
- Competitor Profile: Pethealth, Inc.
Company Overview
Revenue Growth
Table 4-3: Pethealth Revenues, 2001-2012 (in millions of Canadian dollars) .. 145
Pet Insurance Operations
Brokers
Underwriting
U.K. Market
PurinaCare Acquisition a Sign of Things to Come?
North American Pet Insurance Performance
Table 4-4: Pethealth Pet Insurance North American Gross Written
Premiums, 2001-2013 (in millions of U.S. dollars)
Table 4-5: Number of Pethealth Pet Insurance North American Policies in Force, 2001-2013
United States v. Canada
Table 4-6: Share of Pethealth Pet Insurance North American Gross
Written Premiums: U.S. vs. Canada, 2005-2013 (percent)
Pet Insurance Programs and Marketing
Illustration 4-7: Pethealth Inc.'s CherryBlue-branded website, featuring Hockey Night In Canada broadcaster Don Cherry
Pethealth Launches Aggregator Site—Petinsurance.ca
Non-Insurance Operations
PetPoint Shelter Management Software
24PetWatch Pet Registry Services
Petango.com
- Competitor Profile: PetPartners, Inc.
Company Background
AKC and CFA Policy Types
AKC and CFA Program Marketing
Illustration 4-8: AKC Pet Insurance Ad in AKC Family Dog (March/April 2012)
Illustration 4-9: AKC Pet Healthcare ad on the AKC.org website, captured August 29, 2013
Illustration 4-10: CFA Pet Healthcare ad on the CFA.org website, captured August 29, 2013
- Competitor Profile: Petplan (Fetch, Inc.)
Company Overview
Table 4-7: Petplan Gross Written Premiums 2009-2013
Accolades Accumulate
The U.K. Connection
Fetch Moves into Canada
Illustration 4-11: Petplan Canada screenshot, viewed September 10, 2013
A Number of Strategic Partners
Illustration 4-12: Capital BlueCross pet insurance page, viewed September 10, 2013
Marketing Initiatives
Illustration 4-13: Screenshot of Petplan's Spring 2013 :60 TV ad
- Competitor Profile: Pets Best Insurance Services
Company Overview
BestBenefit Accident and Illness Plans
Table 4-8: BestBenefit Accident & Illness Plan Coverage
New Plans Introduced
Cancer-Only Option
Feline-Only Illness Plan
Accident-Only Coverage
Annual-Based Plans
BestWellness Routine Care Coverage
Channel Focus
Illustration 4-14: Pets Best banner ad, captured July 26, 2013
Prompt Payment
Pets Best and Progressive
Marketing Initiatives
Illustration 4-15: Pets Best cat newsletter
- Competitor Profile: Trupanion
Company Background
Own Underwriter
Financing, Growth and Future Aspirations
Approach to Channels
Trupanion Partners
Illustration 4-16: Trupanion ad, captured on Pet360 website on September 13, 2013.
Therapeutic Food Discount
Company Introduces Trupanion Express
Consumer Approach
Policy Changes
Trupanion Online
- Competitor Profile: Veterinary Pet Insurance Co.
Company Overview
Company Realigns with Focus on Consumer Advocacy
Commitment to Benefit Schedule
Belief in Indemnity Insurance
Adherence to Regulation
Product Lineup
Emphasizing Wellness Care
VPI Hits New High Water Mark
Table 4-9: Veterinary Pet Insurance Gross Written Premium 1998–2013 (in millions of dollars)
Marketing Initiatives
Illustration 4-17: VPI Pet Insurance ad
Public Relations Mix “Fun Facts” with Pet Health Tips
Pet Parent's Day
The Iams Connection
Veterinary Channel Remains VPI Focus
Voluntary Benefits Leader
- Competitor Profile: Western Financial Insurance Company
Company Background
Seven Brands, Including Three New Ones
Petsecure
PC pet insurance
CAA
Pet Insurance for Hudson's Bay
The Personal Pet Insurance Program
Illustration 4-18: Ad on Ontario Association of Certified Engineering
Technicians and Technologists website, captured September 15, 2013.
Walmart Pet Health Insurance
Desjardins Pet Insurance Program
Illustration 4-19: Desjardins Pet Insurance Program home page.
Three Products Discontinued
Petsecure's Petset
PetFirst
PurinaCare Canada
Veterinary Channel a Key Strategy
New Mobile App
Illustration 4-20: Petsecure Vet Locator app.
Focus on Shelters
Petsecure and the City of Calgary
Premiums, Policies Return to Solid Growth
Table 4-10: Western Financial Pet Insurance Gross Written Premiums, 2003-2012 (in millions of U.S. dollars)
Table 4-11: Western Financial Pet Insurance Number of Active Policies, 2005-2012
Strategic Alliances
Marketing Initiatives

Chapter 5 Highlights
Chapter 5: Consumer Trends

- Pet Ownership Overview:
Methodology and Data Sources
Growth in Pet Households Outpacing Overall Household Growth
Figure 5-1: Household Ownership Rates for Selected Pet-OwningClassifications, 2013 (percent of U.S. households)
Table 5-1: Household Penetration Rates for Selected Pet-Owning Classifications, 2009-2013 (percent of and number of U.S. households in thousands)
Table 5-2: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications, 2007, 2009, 2011, and 2013 (percent of U.S. households)
Table 5-3: Household Populations for Selected Dog- or Cat-Owning Classifications, 2007, 2009, 2011, and 2013 (U.S. households)
Overall Demographics for Dog Owners
Income, Age and Other Skews by Number of Dogs Owned
Overall Demographics for Cat Owners
Household Composition Skews by Number of Cats Owned
Table 5-4: Demographics for Dog Ownership, 2013 (percent, number of households, and index)
Table 5-5: Selected Demographics for Keeping One Pet Dog, 2013 (percent, number of households, and index)
Table 5-6: Selected Demographics for Keeping Two or More Pet Dogs, 2013 (percent, number of households, and index)
Table 5-7: Demographics for Cat Ownership, 2013 (percent, number of households, and index)
Table 5-8: Selected Demographics for Keeping One Pet Cat, 2013 (percent, number of households, and index)
Table 5-9: Selected Demographics for Keeping Two or More
Pet Cats, 2013 (percent, number of households, and index)
- Pet Owners and Insurance
Penetration Rates for Pet Insurance
Awareness of Pet Insurance
Figure 5-2: Levels of Consumer Awareness of Pet Insurance:
Dog Owners vs. Cat Owners, 2013 (percent)
Word-of-Mouth Replaces Vets as Most Important Source of Pet Insurance Awareness
Figure 5-3: Sources of Awareness of Pet Insurance: Dog Owners vs. Cat Owners, 2013 (percent)
Top Reasons for Never Having Pet Insurance Policies
Figure 5-4: Reasons for Never Carrying Pet Insurance: Dog Owners vs. Cat Owners, 2013 (percent)
Top Reasons for Discontinuation of Pet Insurance
Figure 5-5: Reasons for Discontinuing Pet Insurance: Dog Owners vs. Cat Owners, 2013 (percent)

North American Pet Insurance Revenue Up 15%

FEATURED COMPANIES

  • Embrace Pet Insurance
  • Hartville Group, Inc.
  • PetFirst Healthcare LLC
  • Pethealth, Inc.
  • PetPartners, Inc.
  • Petplan (Fetch, Inc.)
  • MORE

North American pet insurance gross written premiums will reach $618 million in 2013, up 15% from $539 million in 2012, according to Pet Insurance in North America, 5th Edition.

The United States accounted for $536 million of the segment's total in 2013, with Canada comprising the remainder. Both markets posted growth over the previous year, with sales increasing 16% in the U.S. and 9% in Canada. Veterinary Pet Insurance (VPI), based on its commanding presence in the U.S., claims the largest share of the North American market, at 41% of gross written premiums (GWPs).

The North American pet health insurance market should continue charting healthy annual increases over the next five years. North American gross written premiums will reach $962 million in 2018, with the industry crossing the billion dollar threshold by the end of the decade.

Despite this robust level of market dynamism, the industry continues to feel the impact of the recession, as well as consumer resistance to this still relatively novel form of health insurance. Pet insurance penetration in the United States remains at less than 2% of pet owners, compared with rates as high as 25% in the U.K. and 50% in Sweden. Even so, the level of competitive activity is at an all-time high, and partnerships and a strengthening of the various sales channels will help the North American pet insurance industry to continue to expand.

- Embrace Pet Insurance
- Hartville Group, Inc.
- PetFirst Healthcare LLC
- PetPartners, Inc.
- Pethealth, Inc.
- Petplan (Fetch, Inc.)
- Pets Best Insurance Services
- Trupanion
- Veterinary Pet Insurance Co.
- Western Financial Insurance Company

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