If you thought pet insurance was a passing fad, think again.
A new report shows that more and more North Americans will choose to buy insurance products for their pets in the next four years.
The report from Packaged Facts, “Pet Insurance in North America, 3rd Edition,” shows that sales of pet insurance products will reach as high as $1.1 billion in 2012. This projection is consistent with healthy revenues in the overall pet market due to affluent households that are willing to spend more on the health and wellness of pets.
A conservative estimate shows that revenues generated by pet insurance jumped 21 percent from 2006 to 2007, growing from $205 million to $248 million.
As more consumers purchase insurance for their four-legged friends, logically, the pet insurance market is expanding. Many companies have entered the market in the last few years. For instance, insurance plans are now sold under nationally known pet care brands, such as PurinaCare and the American Kennel Club.
Tatjana Meerman, publisher of Packaged Facts, says it’s a safe bet that more well-funded companies will enter the pet insurance market in the next year.
“Each company has its own version of pet insurance products, ranging from highly customizable plans to greatly simplified ones for a mass market,” Meerman said. “In the pet insurance spotlight are pet market companies and brands, including PurinaCare, AKC, ASPCA, as well as dedicated pet insurance underwriters such as American Pet Insurance Company and SecuriCan, and following in the footsteps of providing consumer finance services, Kroger.”
In addition, the report shows that companies that sell pet insurance are targeting consumers through new distribution channels, such as direct-to-consumer, veterinarian offices, pet care service providers, supermarkets, and, of course, insurance agencies. |
