Europe Pet Insurance Market Outlook, 2030

Europe's pet insurance market stands as a testament to a culture deeply rooted in compassion and responsibility towards furry companions. Delving into its multifaceted landscape reveals a journey shaped by rich history, regulatory frameworks, and evolving attitudes towards pet care. In Europe, the pet insurance market presents a distinctive landscape marked by its rich history, unique cultural nuances, and evolving geographical dynamics. Unlike North America, where pet insurance has seen significant growth in recent years, Europe has a longer tradition of embracing this form of financial protection for pets.

This acceptance is deeply ingrained in European culture, where pets are often considered cherished family members deserving of comprehensive healthcare. This cultural mindset has fostered a higher level of awareness and adoption of pet insurance policies among European pet owners compared to their counterparts across the Atlantic. The regulatory environment in Europe has played a pivotal role in shaping the pet insurance industry. Many European countries have implemented regulations mandating pet insurance or requiring pet owners to demonstrate financial responsibility for their animals' medical needs. These regulations not only create a sense of obligation among pet owners but also provide a conducive environment for insurers to innovate and operate within a well-defined legal framework. The structure of veterinary care in Europe differs from that in North America. In many European countries, veterinary services are more centralized and accessible, often provided through national healthcare systems or highly regulated private practices. This centralized structure allows for greater standardization of care and pricing, making it easier for pet insurance companies to develop comprehensive and cost-effective coverage options. The cultural attitudes towards pets further reinforce Europe's dominance in the pet insurance market. Throughout Europe, pets are commonly regarded as integral members of households, with owners willing to invest in their well-being through insurance coverage. This strong bond between owners and their pets drives demand for insurance products and services, fueling the growth of the European pet insurance market. Looking ahead, the geographical landscape of the European pet insurance market is poised for expansion. While certain countries have historically dominated the market, there is growing potential for growth and innovation across the continent. Technological advancements and the increasing availability of online platforms for purchasing and managing policies are expected to further drive growth and accessibility in the market. As the pet insurance industry continues to evolve in Europe, it will likely become even more integral to responsible pet ownership, contributing to the overall well-being of pets and their owners across the region.

According to the research report, the Europe pet insurance market was valued at more than USD 2.3 Billion in 2019. In Europe, the pet insurance market thrives on a combination of strategic initiatives, unique aspects, and key factors that distinguish it as a dynamic and evolving industry. One notable strategy employed by insurers in Europe is the emphasis on customization and flexibility in insurance plans. Recognizing the diverse needs and preferences of pet owners across different countries and demographics, insurers offer a wide range of coverage options and add-on benefits, allowing pet owners to tailor their policies to suit their specific requirements.

This strategy not only enhances customer satisfaction but also fosters loyalty and retention within the pet insurance market. Europe's pet insurance market is characterized by its strong focus on preventive care and wellness initiatives. Insurers often collaborate with veterinary professionals to promote preventive measures such as regular check-ups, vaccinations, and screenings, aiming to proactively address potential health issues and reduce the likelihood of costly treatments in the future. By incentivizing pet owners to prioritize preventive care through discounted premiums or additional benefits, insurers contribute to the overall health and well-being of pets while simultaneously managing healthcare costs. Technological innovation plays a significant role in shaping the European pet insurance market. Insurers leverage digital platforms, mobile applications, and data analytics to streamline processes, enhance customer experience, and optimize risk management. Through online portals, pet owners can easily manage their policies, submit claims, access educational resources, and engage with customer support, making the insurance experience more convenient and transparent. Furthermore, data-driven insights enable insurers to assess risk more accurately, refine pricing models, and develop targeted marketing strategies, thereby driving growth and competitiveness in the market. Another key aspect of the European pet insurance market is its collaborative approach towards partnerships and distribution channels. Insurers often collaborate with veterinary clinics, pet retailers, and other stakeholders to expand their reach and enhance their service offerings. These partnerships enable insurers to leverage existing networks and tap into new customer segments, thereby increasing market penetration and brand visibility.

Segmentation Analysis

Based on the report the insurance type is segmented into Accident and Illness, Accident Only. The growth of the 'Accident Only' insurance segment in Europe can be attributed to several key factors that cater to the changing needs and preferences of pet owners in the region. One primary reason for the increasing popularity of Accident Only insurance is its affordability and simplicity compared to comprehensive Accident and Illness coverage. With Accident Only policies, pet owners have access to basic coverage that specifically addresses injuries resulting from accidents, such as broken bones, lacerations, or ingestion of foreign objects.

This streamlined coverage appeals to pet owners who prioritize protecting their pets against unexpected accidents but may not be ready to commit to the higher premiums associated with comprehensive insurance plans. The rise of Accident Only insurance in Europe reflects a growing awareness among pet owners about the financial implications of veterinary emergencies and accidents. As veterinary care costs continue to escalate, pet owners are seeking cost-effective ways to mitigate the financial burden of unforeseen medical expenses while ensuring their pets receive prompt and appropriate care. Accident Only insurance provides a budget-friendly solution that offers peace of mind and financial protection against the most common and unpredictable accidents that pets may encounter. They focus on the packages as per the pet lifetime or incident base. The accident & illness segment dominated the European market, which held more than 92% of the share even in 2020. This is due to the comprehensive nature of the policy, which covers all major illnesses along with accidents. Thus, the policy is the most favorable policy for young animals, stimulating the adoption rate. The accident-only segment is expected to grow with a significant CAGR in the coming years. However, the high veterinary diagnostic cost and the inclining theft rates are further to incline the market growth. The availability of Accident Only insurance aligns with the cultural mindset of responsible pet ownership prevalent in Europe. While pets are considered cherished members of the family in many European households, there is also a pragmatic approach towards managing pet-related expenses. Pet owners in Europe may opt for Accident Only insurance as a strategic measure to address immediate concerns about accidents and injuries while supplementing their pets' healthcare needs with other forms of preventive care or self-funded savings for potential illnesses or chronic conditions. The growth of Accident Only insurance in Europe may be driven by market dynamics and competitive forces within the pet insurance industry. Insurers may introduce Accident Only policies as part of their product portfolio to cater to specific segments of the market or differentiate themselves from competitors. By offering a range of insurance options, insurers can attract a broader customer base and address varying levels of risk tolerance and budget constraints among pet owners.

Based on the report the animal type is segmented into dogs, cats and others. Dog segment is leading in Europe. The leading position of the dog segment within the European pet insurance market can be attributed to several key factors that underscore the unique relationship between dogs and their owners, as well as the specific needs and characteristics of canine companionship. Firstly, dogs are among the most popular pets across Europe, with a long-standing history of companionship and loyalty to humans. The deep emotional bond between dogs and their owners often translates into a greater willingness among dog owners to invest in their pets' health and well-being, including purchasing insurance coverage.

This strong emotional connection drives demand for insurance products that provide comprehensive protection for dogs, covering a wide range of medical expenses from routine care to emergency treatments. Secondly, the higher incidence of health issues and medical interventions among dogs compared to other pets contributes to the dominance of the dog segment within the pet insurance market. Dogs are susceptible to a variety of health conditions throughout their lives, including genetic disorders, orthopedic issues, and age-related ailments. Additionally, dogs tend to be more adventurous and prone to accidents and injuries, necessitating frequent visits to the veterinarian and potentially costly medical treatments. As a result, dog owners recognize the importance of having insurance coverage to mitigate the financial impact of unexpected veterinary expenses, making the dog segment a lucrative market for insurance providers. Furthermore, the perception of dogs as valued members of the family drives demand for comprehensive insurance coverage that ensures dogs receive the best possible care when they fall ill or sustain injuries. Many dog owners prioritize their pets' health and happiness, viewing them not just as animals but as beloved companions and integral parts of their households. This emotional attachment motivates dog owners to seek out insurance policies that offer extensive coverage, including benefits such as wellness exams, vaccinations, and preventive care, in addition to coverage for accidents and illnesses. The cultural and lifestyle factors prevalent in European societies also contribute to the dominance of the dog segment within the pet insurance market. Dogs are often seen as lifestyle accessories and social companions, accompanying their owners on walks, outings, and travel adventures. This active and engaged lifestyle increases the likelihood of accidents and injuries, further highlighting the importance of insurance coverage for dogs.

On the basis of report by the end user is segmented into Agency, Broker, Bancassurance and Direct writing. In terms, the leading position of the agency segment within the end-user segmentation of the European pet insurance market can be attributed to several key factors that highlight the effectiveness and appeal of agency distribution channels in reaching and serving pet owners. Firstly, agencies offer a personalized and consultative approach to selling insurance products, which resonates well with pet owners who value expert guidance and tailored solutions.

Insurance agents have the knowledge and expertise to assess the unique needs of individual pet owners and recommend suitable insurance plans that provide comprehensive coverage for their pets' health and well-being. This personalized approach fosters trust and confidence among pet owners, who appreciate the opportunity to discuss their concerns and receive personalized recommendations from knowledgeable professionals. Secondly, agencies often have established relationships and partnerships with insurance companies, enabling them to offer a wide range of insurance products and access to multiple carriers. This breadth of choice allows pet owners to compare different insurance options and select the policy that best fits their budget and coverage requirements. Agencies may offer bundled insurance packages or discounts for multiple pets, providing added value and incentives for pet owners to purchase insurance coverage for their furry companions. The convenience and accessibility of agency distribution channels play a significant role in driving their popularity among pet owners. Insurance agencies typically have physical office locations in local communities or online platforms that pet owners can easily access to inquire about insurance options, request quotes, and purchase policies. This accessibility ensures that pet owners have convenient access to insurance services and support whenever they need assistance or information regarding their policies. The role of agencies as trusted advisors and advocates for pet owners further reinforces their leading position within the pet insurance market. Insurance agents serve as advocates for their clients, advocating on their behalf to ensure prompt claims processing and resolution in the event of a pet-related incident. This advocacy role builds loyalty and long-term relationships between pet owners and insurance agencies, fostering repeat business and referrals within their networks.

Recent developments

• In 2021, Pethealth To Acquire Microchip Registry Operations of the Michelson Found Animals Foundation. Pethealth, under its 24PetWatch brand, launched its free microchip registry and now, Michelson Found Animals is proud to transition its microchip registry business to a new owner that will continue expanding the registry, serving pet parents and supporting the advancement of animal welfare.
• In 2020, Royal and Sun Alliance (RSA) agrees EUR 7.2 billion takeover by two overseas insurersTryg will pay Euro 4.2 billion and take over RSA’s Swedish and Norwegian businesses, and Intact will pay EUR 3 billion to buy RSA’s Canadian, UK and Ireland, and international operations. The two companies will co-own RSA’s Danish business. RSA shareholders will also receive an interim dividend of 8% per share, worth about EUR 82 million in total.

COVID-19 Impact

The Europe Pet Insurance Market was negatively impacted by COVID-19 in 2020. The coronavirus pandemic has shown an impact on the proper functioning of various industries in different regions. It affected Europe Pet Insurance Market very badly. Many veterinary hospitals and clinics remained close due to lockdown and restriction on movement. Insurance companies are trying to innovate and modify the policy coverages and policies depending upon the incidences of health conditions. Companies are focussing on providing solutions to the pet owners and spreading awareness regarding the cost reimbursement available in the market. Also, Various companies are taking steps to ensure that pet gets extraordinary care during the COVID-19 outbreak. Also, the companies are innovating multiple solution for their pet owners to enhance their policy process

Considered in this report

• Geography: Europe
• Base year: 2024
• Historical year: 2019
• Forecasted year: 2030

Countries Covered

• Germany
• UK
• France
• Spain
• Italy
• Russia

Aspects Covered in the report

• Market Size by Value for the period (2019-2030F)
• Market Share by Animal Type (Cat, Dog & others)
• Market Share by Insurance Type (Accidental and Illness & Accident only endorsement)
• Market Share by End User (Agency, Broker, Bancassurance, Direct writing)
• Market Share by Region
• Market Share by Country
• Market Share by Company

The approach of the report:

We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise.

This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Finance & Insurance Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.