This report analyzes the UK pet insurance market, looking at drivers of uptake. It explores the claims landscape in 2021, as well as upcoming regulatory changes. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within the space. The impact of factors including inflation and emerging technology such as AI on the pet insurance space are also examined.
The pet insurance market experienced an 11.7% increase in gross written premiums (GWP) in 2021, reaching a value of GBP1.4 billion. The number of policyholders increased by 4.5% in 2021 compared to the previous year. In 2021, only 21.7% of dogs and 10.9% of cats in the UK were insured - illustrating potential for the market to grow further in the coming years. Growth in the market was driven by a 4.5% increase in the number of policyholders and an 8.3% rise in average premiums. We forecast GWP to grow every year between 2021 and 2026f at a compound annual growth rate (CAGR) of 6.5%, with GWP reaching GBP1.9 billion in 2026f.
The pet insurance market experienced an 11.7% increase in gross written premiums (GWP) in 2021, reaching a value of GBP1.4 billion. The number of policyholders increased by 4.5% in 2021 compared to the previous year. In 2021, only 21.7% of dogs and 10.9% of cats in the UK were insured - illustrating potential for the market to grow further in the coming years. Growth in the market was driven by a 4.5% increase in the number of policyholders and an 8.3% rise in average premiums. We forecast GWP to grow every year between 2021 and 2026f at a compound annual growth rate (CAGR) of 6.5%, with GWP reaching GBP1.9 billion in 2026f.
Scope
- Growth in 2021 was driven by the dog insurance market, which experienced an 8.5% increase in the number of policyholders. Accounting for 74.9% of GWP and 67.3% of policyholders in 2021, the dog segment continues to have the biggest influence on the UK pet insurance market. Dogs also accounted for 74% of claims notified.
- Cat insurance accounted for 18.7% of GWP and 28.3% of policyholders in 2021.
- Underwritten by Allianz, Petplan remained the market leader with 26.3% of total GWP in 2021.
Reasons to Buy
- Understand the current and future size of the UK pet insurance market.
- Discover the impact of COVID-19 and how it has influenced trends in the market.
- Identify the top players, their products, and their strategies.
- Discover the impact the cost-of-living crisis will have on the pet space.
- Learn how the UK pet insurance market will evolve over the next five years.
Table of Contents
1. Executive Summary1.1 Market overview
1.2 Key findings
1.3 Critical success factors
2. Pet Insurance Market Dynamics
2.1 The pet insurance market recorded double-digit growth in 2021
2.2 The increased number of policyholders and premiums led to GWP growth in 2021
2.3 There is room for growth in the number of policyholders
2.4 GWP is dominated by dog insurance
2.5 Average premiums vary by type of pet
2.6 The number of claims increased in 2021
2.7 Gross claims in the pet insurance market increased
2.8 The average claim varies considerably depending on the type of pet
2.9 The UK pet population continues to grow after the COVID boom
3. The Structure of the UK Pet Insurance Market
3.1 Allianz continues to dominate the market
3.2 Policy features from the top providers
3.3 Revolut enters the pet insurance market
3.4 The market is beginning to diversify
3.5 Opportunities exist in the exotic pet market
4. The Market Going Forward
4.1 The market is set to continue growing
4.2 Dog insurance will remain the dominant segment
4.3 The cost of claims will continue to grow
4.4 Dog insurance claims incurred will reach GBP918 million by 2026f
4.5 Cat insurance gross claims incurred will reach GBP179 million by 2026f
4.6 The cost of claims for other pets will pose the greatest financial burden on insurers
4.7 Attracting new customers will be key for insurers
4.8 Regulation and technology
4.9 AI can help prevent fraudulent claims
4.10 The power of social media
5. Appendix
5.1 Abbreviations and acronyms
5.2 Methodology
5.3 Secondary sources
5.4 Further reading
- About the Publisher
- Contact the Publisher
Table 1: Breakdown of the pet insurance market by product, 2021
Table 2: GWP in the pet insurance market, 2017-21
Table 3: The claims landscape in the pet insurance market, 2017-21
Table 4: Average claims cost by pet, 2017-21
Table 5: Petplan’s pet insurance products
Table 6: Animal Friends’ pet insurance products
Table 7: Admiral’s pet insurance products
Table 8: The split of the pet insurance market, 2021-26f
Table 9: Number of pet insurance policyholders by pet type (000s), 2021-26f
Table 10: The cost and number of claims within the total pet insurance market, 2021-26f
Table 11: The cost and number of claims within the dog insurance segment, 2021-26f
Table 12: The cost and number of claims within the cat insurance segment, 2021-26f
Table 13: The cost and number of claims for other pet insurance segment, 2021-26f
List of Figures
Figure 1: GWP for the UK pet insurance market grew by 11.7% in 2021
Figure 2: The number of policyholders in the UK pet insurance market grew by 4.5% in 2021
Figure 3: Dog insurance policies make up 67.3% of the total market
Figure 4: Dogs accounted for 74.9% of pet insurance GWP in 2021
Figure 5: Other pet premiums remained the most expensive across the review period
Figure 6: The total number of reported claims increased to a record high in 2021
Figure 7: Gross claims incurred increased by 9.2% in 2021
Figure 8: The average claim for a dog is considerably higher than for a cat
Figure 9: Consumer price inflation will peak in 2022
Figure 10: There is considerable potential for growth in the pet insurance market
Figure 11: There is room for growth for tracking technology to monitor pets in the UK
Figure 12: Allianz was responsible for the largest share of premiums in the pet insurance market in 2021
Figure 13: Allianz accounted for the most contracts in 2021
Figure 14: The pet insurance market is set to reach almost GBP2 billion over the forecast period
Figure 15: There will be 5.3 million pet insurance policyholders by 2026f
Figure 16: The average claims payout is expected to exceed GBP1,300 by 2026f
Figure 17: Average claims payouts for dogs are set to experience sharp growth
Figure 18: The average cat insurance claims payout will see steady growth up to 2026f
Figure 19: The average cost of other pet claims will increase by 65.7% over the forecast period
Figure 20: Forecasting methodology
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Allianz
- Petplan
- PFMA
- Canine and Feline Behaviour Association
- More Than
- RSPCA
- Royal College of Veterinary Surgeons
- Defaqto
- Red Sands
- RSA
- Tesco Bank
- Animal Friends
- John Lewis
- Nationwide
- U K Insurance
- Admiral
- Aviva
- Diamond
- Elephant
- Bell
- Pets at Home
- Churchill
- Direct Line
- Revolut
- Joii
- FirstVet
- Vetfone
- ManyPets
- Pet Protect
- PitPat
- Born Free
- Exotic Direct
- FCA
- Fetch by the Dodo
- Vet-AI
- Makerstudy
- Asda
