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UK Pet Insurance Market Research, UK Pet Insurance Sector - Kenn Research

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The pet insurance market is expected to break the POUND 1bn mark for the first time in 2016 as insurers continue to battle rising costs. – PowerPoint PPT presentation

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Title: UK Pet Insurance Market Research, UK Pet Insurance Sector - Kenn Research


1
Rising Vetnary Cost a Challenge for PET Insurers
in the UK Ken Research
2
In 2016, it was estimated that around 40 of the
households in UK have pets and the total pet
population stands at around 57 million of which
the dog population is 8.5 million and cat
population is 7.5 million. Now-a-days, more and
more pet owners are opting for insurance. This is
mainly due to increase in vet bills. Pet
insurance is designed to cover medical expenses
if the insured pet falls ill or is injured in an
accident. Most products cater for cats and dogs,
although there are policies available for
rabbits, horses/ponies and more exotic pets also.
3
The pet insurance market is currently
experiencing strong growth as there is huge
untapped market potential but at the same time it
is also facing difficulties due to medical
inflation and accelerating premiums. UK has
nearly as many pets as people so unexpected
visits to the vet is very common. In fact, the
veterinary costs are almost one third of the
total household spending on pets. This is also
accompanied by advances in veterinary care which
in turn increase the cost of treatments. Due to
this, more number of pet owners is taking
insurance. Also, improved awareness amongst
people about the benefits of insurance has
further assisted the growth of this market.
4
According to a report announced by Ken Research
titled UK Pet Insurance Market Dynamics and
Opportunities 2016, there has been a rise in the
product penetration with an increase in the
number of policy subscribers. The dog insurance
market is three times the size of the cat market
and about one third of cats and half of dogs are
insured. Still around 56 of the pet owners are
uninsured creating huge market potential for new
and existing player. The market also faces
certain challenges. Medical inflation and
increase in veterinary costs have made it
difficult for the insurers to maintain a margin
due to increase in the cost of claims. This
increased pressure on the insurers is being
passed on to the pet owners in terms of higher
premiums. It has also raised questions on the
quality of insurance provided. Some pet owners
also find the different levels of cover
confusing.
5
Despite the challenges, the pet insurers have
well-established distribution networks. Though
many pet owners prefer to get in touch with the
insurer directly but there are a significant
number of people who value convenience, are
seeking alternative channels to obtain their
policies. Moreover, the retail providers are the
second most popular channel of distribution for
pet insurance. This can be attributed to increase
spending in marketing and advertising. The
insurers are trying to boost product take up by
making their product available on different
propositions and price comparison sites. Use of
online platforms to spread awareness and better
reach their target segment has helped them in
making their products easily available and offer
simple online purchasing solutions. Due to the
growth of online media, there has been an
increase in the number of small players leading
to increased competition.
6
Although it has been observed that pet insurance
are not well served on price comparison sites as
it is not seen by the customers as a commodity.
Due to this reason, major players are still
refraining from using these price comparison
sites as a means of product distribution. Pet
insurance appears as an attractive market with
lot of opportunities but they also struggle in
terms of increasing premiums and complexity of
their products. Hence, the insurers need to focus
on providing simpler and more attractive packages
which also ensures quality at a reasonable price.
They need to educate the customers about the
different cover levels and maintain transparency
in terms of pricing and terms and conditions of
the policy. They need to provide value to the
customers. This will help the customer in making
an informed decision which will definitely lead
to better satisfaction.
7
Also, the insurers need to work closely with the
vet practices to have better control of costs. If
taken care of, the above mentioned points can
help new entrants and existing players benefit
for a long period of time. Some of the players in
the pet insurance market are Tesco Bank, MS
Bank, Aviva, Pinnacle, Pet Plan, John Lewis
Finance Pet Insurance, Sainsburys Bank etc.
Key Topics Covered in the Report Non-Life
Insurance Industry Denmark UK Insurance Sector
Outlook UK Non- Life Insurance Market
Research Non-Life Insurance Sector Trends UK UK
General Insurance Regulations UK Pet Insurance
Market Size
8
UK Pet Insurance Market Research UK Pet
Insurance Sector UK Pet Insurance Industry For
more information, click on the link
below https//www.kenresearch.com/banking-financi
al-services-and-insurance/insurance/uk-pet-insuran
ce-market-opportunities/42600-93.html Related
Reports https//www.kenresearch.com/banking-financ
ial-services-and-insurance/insurance/uk-insurance-
aggregators/103798-93.html https//www.kenresearc
h.com/banking-financial-services-and-insurance/ins
urance/insurance-global-industry-guide-2016/100059
-93.html
9
Contact Us Ken Research Ankur Gupta, Head
Marketing Communications Ankur_at_kenresearch.com
91-9015378249
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