UK Pet Insurance: Market Dynamics and Opportunities 2019

Table of Contents

1. EXECUTIVE SUMMARY

• 1.1. Pet insurance growth faltered in 2018 but is expected to pick back up
• 1.2. Key findings
• 1.3. Critical success factors

2. PET INSURANCE MARKET DYNAMICS

• 2.1. The UK pet insurance market stagnated in 2018
  • 2.1.1. The number of pet insurance policyholders fell in 2018
  • 2.1.2. GWP is dominated by dog insurance
  • 2.1.3. Average premiums vary by type of pet
• 2.2. The gross cost of claims continues on an upward trend despite a fall in frequency
  • 2.2.1. The number of claims notified fell for the first time in five years
  • 2.2.2. Gross claims in the pet insurance market saw minimal growth
  • 2.2.3. Technology is a double-edged sword
  • 2.2.4. Veterinary salaries have had little impact on the cost of claims, but this will change
  • 2.2.5. The average claim varies considerably depending on the type of pet
• 2.3. Summary of the current market by product
• 2.4. The proportion of UK households with pets has decreased
  • 2.4.1. The number of dogs remained the same, but the number of cats decreased
  • 2.4.2. The size of the potential pet insurance market is almost four times its current value
  • 2.4.3. Obesity within the UK pet population is an increasing problem

3. COMPETITOR DYNAMICS

• 3.1. The structure of the UK pet insurance market
  • 3.1.1. Allianz, RSA, and Red Sands are the largest underwriters in the market
  • 3.1.2. The top three providers have very similar offerings
  • 3.1.3. Bought By Many is bringing innovation to the market
  • 3.1.4. Waggel takes pet insurance fully digital
• 3.2. The leading players have the greatest marketing expenditure

4. THE MARKET GOING FORWARD

• 4.1. The market is set to continue growing
  • 4.1.1. Total market GWP is forecast to reach £1.7bn in 2022
  • 4.1.2. Policy numbers will continue rising
• 4.2. The cost of claims will continue to increase
  • 4.2.1. Dog insurance claims are forecast to increase through to 2023
  • 4.2.2. The average cost of a cat insurance claim is expected to rise
  • 4.2.3. The number of claims is expected to fall in the other pet segment
• 4.3. Reducing costs will be key for pet insurers
  • 4.3.1. Pet insurers should replicate innovation seen in the private medical insurance market
  • 4.3.2. Blockchain can reduce costs and improve the customer experience
• 4.4. Different avenues could be utilized to increase product uptake
  • 4.4.1. Pet insurance in the US is becoming an increasingly popular employee benefit
  • 4.4.2. Social media could allow insurers to target digital-savvy individuals and educate pet owners

5. APPENDIX

• 5.1. Abbreviations and acronyms
• 5.2. Methodology
  • 5.2.1. Competitor rankings
  • 5.2.2. 2018 UK Insurance Consumer Survey
  • 5.2.3. Forecasting methodology
• 5.3. Secondary sources