1. Covid-19 pandemic has been a major catalyst for UK Pet Insurance market, with a growth rate CAGR of 5.3% between 2017-2022P.
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By 2027F, the UK Pet Insurance market is expected to grow at a robust rate. The market’s expansion can be ascribed to the increasing companion animal population, adoption of advance technology, high veterinary cost and growing At-home diagnostic. Furthermore, the Covid-19 pandemic has also led to rise in health issues among animals which has further boosted the growth in pet insurance market in UK. The Pet insurance market is expected to grow at a CAGR of 4.8% between 2022P-2027F because of the emergence of new companies like Petsure, RSPCA, and Napo insurance. The prominent companies in the UK Pet Insurance market in 2022P includes: Many Pets, Petplan, Direct Line and others.
2. Increasing companion animal, high veterinary costs, rising pet health issues and awareness among pet owners are the major growth drivers for UK Pet Insurance Market.
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The pet insurance market is growing mainly because of the increase in companion animal population. The reason behind this increase in the prevalence of mental illnesses in humans such as clinical depression, anxiety-related issues, personality disorder, and psychotic disorder and one of the popular treatments for this mental illness is animal-assisted therapy, as animals can provide patients with emotional support. This growth in companion animal population is expected to fuel growth in pet insurance market for one more reason, the Veterinary costs. These costs are very high due to requirement of veterinary doctors, skilled technicians, and specially designed diagnostic equipment. These costs create a need for pet owners to seek options for reducing their out-of-pocket expenditure on veterinary care by taking insurance. Furthermore, increasing digitization and growing awareness are also expected to fuel the growth in the UK pet insurance market.
3. With Lack of Awareness, Complexity in Digital Process and Confusing Chatbots are posed as the major challenges faced by the UK Pet Insurance Market.
A key challenge faced by the pet insurance market is the lack of awareness and understanding of pet health insurance among pet owners which results in low adoption rate of pet insurance in UK. But the lack of awareness is not the only challenge faced the market, challenges like lack of personalised recommendations and complexity in the Digital process also halts the growth of the pet insurance market. Furthermore, Insurance policies often do not allow any changes to the parameters of the product. This, coupled with the fact that each insurance provider has many policies on offer makes it difficult for consumers to choose the right one. What the Customers wants is the simple and fast digital interactions for the purchase of pet insurance, but complex coverage details that include many specific exceptions create barriers for the customers, thus halting the growth of the pet insurance market.