Pet health increasingly insured in North America (November 21, 2005)

Pet insurance revenues in North America have jumped 23% since 2004, according to the new report “Market Trends: Pet Insurance” published by the market researcher Packaged Facts.
This growth is expected to continue over the next five years and Packaged Facts projects that by 2010, the pet insurance market in the U.S. and Canada will reach $551 million (as measured by gross written premiums), which represents an annual average jump of 24%.
While the report indicates that this increasing revenue is a result of the “part of the family” status pets have achieved in many households, Packaged Facts says that increased pet owner spending is the most important growth driver, resulting from rising veterinary-related costs, expensive treatment options and prescription drugs, and pet pampering among pet owners with increasing amounts of disposable income.
Ad spends by major insurance marketers, which rose 353% between 2000 and 2004, and affinity marketing linking insurers with household brands, have brought pet insurance into the view of consumers, according to the research publisher.
“As the word about affordable pet insurance hits the streets, more and more pet owners are choosing to safeguard the health of the pets they call ‘family’,” Don Montuori, the publisher of Packaged Facts, says. “They’re becoming educated on pet-related cancer, periodontal disease, urinary tract infections, and a whole host of other illnesses, and they’re seeking high-tech medical intervention including surgery, chemotherapy, MRI, and CT scans just as they would through their own health insurance.”