Pets have long been a source of comfort, companionship, safety, joy, and unconditional affection. As such, most pet owners conscientiously provide them with nutritious food and needed medical attention. But the cost of medical care can be high and unpredictable and, for this reason, pet health insurance coverage is promoted to alleviate its pressure.

Pet insurance can be considered a mature industry, but three recent developments have commanded our renewed interest in it: the Covid-19 pandemic, technological advancements, and the younger profile of pet owners. The pandemic saw a boom in pet ownership, with people spending more time at home and several acquiring pets for the first time. Meanwhile, ongoing technological advancements are enabling the customization and personalization of pet insurance policies and improved user experiences overall. What’s more, most pet owners are not just younger and inclined toward digital, seamless experiences, but also view themselves as “pet parents” and their pets as “starter children.” As a result, they are more willing to spend on their pets’ well-being, including on insurance.

This Insight provides an overview of the pet insurance industry and delves into its disruptors, drivers, and market participants.