Pet Insurance — A Prediction on Rates & Claims Data
Published May 28, 2024 at 9:12 AM · News Releases and Bulletins
Allied Market Research said the pet insurance market hit $10.1 billion in 2023. The company also predicts the market will more than triple and grow to $38.3 billion a decade from now.
It predicts from 2024 to 2033 the compound annual growth rate (CAGR) will be up 14.5%.
The why is pretty easy. Driving the demand is more pet owners humanizing their pets and having a stronger emotional bond with them than in the past. And those pet owners are willing to spend more on the healthcare of their pets.
A lot more.
Also driving the growing market is the high cost of taking a pet to the vet as many pets have acute illnesses or chronic conditions. Accidents also play into the growth and the segment growing the fastest is accident-only insurance.
It accounted for 80% of the pet insurance revenue in 2023. Allied Market Research said that line will continue to dominate in the next decade.
Most of the insurance is purchased for dogs.
Along with the growing number of pet owners purchasing pet insurance is the growth of claims. Embrace Pet Insurance looked at claims and found they have risen 17.5% since 2021.
Nationwide the average cost per claim according to Embrace is $449. Spot Pet Insurance sets the average at $419.
Washington D.C. has the highest average claims costs in the first quarter of 2024. The nation’s capital reports an average of $592 per claim. The PIA Western Alliance states of California and Washington rank second and third with average claims costs of $519 and $498 respectively.
Here are the average claims costs for the most used pet health procedures:
Anesthesia
Average costs in the 1st quarter of 2024: $1,155
X-rays
Average costs in the 1st quarter of 2024: $819
Blood tests
Average costs in the 1st quarter of 2024: $807
Microchip implantation
Average costs in the 1st quarter of 2024: $479
Prescription medications
Average costs in the 1st quarter of 2024: $442
Special diets, foods and/or supplements
Average costs in the 1st quarter of 2024: $421
Ear cleaning
Average costs in the 1st quarter of 2024: $403
Fecal tests
Average costs in the 1st quarter of 2024: $345
Source link: Insurance Business America — https://bit.ly/3R2QQ65
Source link: PropertyCasualty360.com — https://bit.ly/3X0aNyy