The US pet market will grow by 9% in 2019, up from the previous year, according to a report by industry analysts.
The Pet Insurers Association (PIA) said demand for insurance covering pet owners was growing at a faster rate than any other segment, with the rise in adoption and pet-shelter use.
The market has experienced double-digit growth since 2013, the year of the Affordable Care Act, which introduced the so-called pet-insurance mandate.
“The pet insurance industry is experiencing significant growth in 2019,” said PIA CEO Mark Rippe.
“We are seeing increased adoption, increased pet-owner engagement and increased utilization of pet insurance.”PIA’s annual survey of pet-related insurers, conducted in April, found that adoption and shelter use increased by 12% in the past year, with demand for a variety of pet policies and pet insurance products expected to increase.
Pet insurance coverage in the United States is set to grow at a rate of 9% this year, up 7.5% from last year, said PIPA chief executive Mark Rieth.
“Pet insurance is the first and most important insurance option for owners, as the cost of insuring a pet can be very high,” Rieth said.
“It is also critical for owners to have coverage if they plan to take their pets out of the home or adopt them.”
In 2019, our industry anticipates a projected growth rate of 11% in pet insurance coverage.
“The PIA report also noted that pet owners are increasingly using pet-care products such as pet-food and pet shampoo as part of their pet-ownership strategy.
The increase in pet ownership is not limited to pet owners who adopt.
In 2019, the PIA expects to see a 9% increase in new pet owners, with pet owners using more personal care products such, shampoo and pet treats.
Pet owners are also spending more time outdoors and participating in more sports, according the report.
The growth of pet ownership has also affected pet insurance premiums, which have historically been higher than pet insurance costs.
In 2019 pet insurance premium costs will rise by an average of 3.5%, which will be higher than average rates across all major industries, the report found.
The report also highlighted a lack of pet owners’ access to pet insurance in the market.PIPA said that there are several reasons why this lack of access is impacting the pet insurance marketplace.”
Petition for pet coverage and adoption are increasing,” said Rieth, “The current pet insurance policy design is not designed for the needs of pet people, who spend more time indoors and have more exposure to pet-caused illnesses and accidents.
“As more pet owners adopt their pets, the pet industry is facing an influx of new pet-buyers, which creates more stress for the insurance market and increases the cost to insure pet owners.”PIPAs report notes that the cost and coverage levels for pet-insured policies have been trending downward over time, as pet insurance carriers have reduced the number of pets in their portfolio, and are less willing to insure pets in the first place.
“Many pet insurance companies are facing increased costs due to this trend,” Rippee said.
“With the growth of the pet market, the costs for pet owners will continue to rise, and pet owners need to consider the added costs that they will have to bear.”