As pet parents become aware about the advances in pet care, nutrition and medical services, there’s a growing need to prioritise and get your furry family member insured today, say Dr A.K.Wankar and Mili Sharma
A animal’s are known to accompany mankind since time immemorial as providers, entertainers and for companionship. However, animals continue to maintain their long-established utility around the globe, the role of pets and all has significantly changed, as in recent times, the ownership of pets has immensely increased purely for comradeship and gratification. This trend in pet keeping and perceiving pets as family members has led the owners to become concerned as well as aware about their unheard needs, thus leading to explosive growth in the pet industry. This led to the emergence of specialised fresh or frozen pet food, prompt veterinary services, pet hotels and day care centers, especially in developed nations like the United States, Europe and Australia etc. For humans, health insurance is considered essential, since they cover the cost of medications, surgeries and other unprecedented health events. Same trend is now catching up in recent years for the pet industry. The first pet insurance policy was written in 1890’s by Claes Virgin. With time, it became so widespread that now approximately 50% of all dogs in Sweden are fully or partly insured. The Indian pet market is also slowly becoming a multimillion-dollar industry and people, especially in metro cities are becoming aware about the advances in pet care, nutrition, medical services and pet insurance. In fact, a vast majority of Bollywood superstars have pets which are very valuable and insured accordingly. Some of the factors contributing to the
a- rise of pet insurance in India are,
b- Rapid industrialisation, urbanisation and globalisation
c- Increase in per capita income and spending capacity
d- Pets emergence as family members or lifestyle companions
e- Increased awareness among people and health benefits of pet keeping
f- Introduction of new pet products, special niche markets and insurance policies
g- Specialised veterinary services and hospitality
h- Steady growth of pet lovers and animal enthusiast and pet adoptions
The concept of humanisation and the growing preference towards the pet industry are vital drivers for the market. Increase in pet adoption and awareness amongst the pet owners are key contributors for rapid growth of the pet industry and pet insurance sector as well. Currently, the pet insurance market holds at 6.8 $ billion and is expected to grow more than 11.6 $ billion by 2027 (Ugalmugle and Swain, 2020). The pet insurance segment is largely dominated by dog insurance (> 80 %), followed by the insurance for the cats (>12.5%), respectively. On a global scale, the European Union (EU) has the largest share, covering over 53% share in 2019 (Europe will have over 102 million cats, 85 million dogs, and around 50 million birds as pets, respectively). In the future EU and USA will be contributing significantly to growth and development of the pet insurance market, other nations will soon follow the trend. From Figure 1, we can see the current growth of the pet insurance sector, which is already an $ billion industries in Europe and America. It can also be appreciated that the share of Asiatic, and other Nations is increasing steadily (Figure 1).
Figure 1. Current trends in global pet insurance market Looking at the Indian scenario, the insurance sector was earlier dedicated, solely to cattle or livestock insurances. In India, this sector is still in budding stages with an annual turnover, little over Rs. 400 crores. In recent times, urbanisation and growing awareness among people has made this nascent sector amongst one of the most rapidly evolving enterprises. And both the government and private organisations are now promoting and providing pet insurances. Indian markets are still mostly untouched (as compared to EU and USA), so the potentials are unlimited here. The emergence and recent advances in veterinary sciences and animal husbandry have imbibed the pet and livestock owners about the growing importance and need for cattle or pet insurances. The cost of medicines, treatment and surgeries is substantial, which led to growth of the pet insurance sector in India, helping the pet owners to cover the treatment cost and unplanned expenditures. Also, the internet age has made the owners more aware of the treatment, cost and other services provided by the veterinarian. Still, only the cream or the rich people opt for pet insurance in India. The expenditure for pets starts very early from the vaccination, followed by regular checkups, deworming, growth supplements, treatments and surgeries, which can account from a couple of thousands to even a few lakhs (example cancer treatment, organ transplantation etc.) Now, pet insurance policies for dogs, cats, horses etc., are offered by both Public and Private Firms in India. The entire procedure is similar to human insurance and starts with filling basic information form, submission of health certificate and allotment of unique identification code to the pet. Different policies provide coverage on following aspects:
1- Illness
2- Surgeries
3- Permanent disability
4- Poisoning
5- Accidental death
6- Terminal disease cover
7- Liability for 3rd Party Injury
8- Mortality benefit cover
Figure 2. Current preferences and trends of coverage policies
Other than normal coverage, some policies also offer insurance for lost or stolen pets, therefore it becomes pertinent to carefully select the best policy accordingly to avail complete benefits. Normally, the insurance companies customarily reimburse around 80% of the sum insured, which needs to be certified first by a veterinarian, while the remaining 20% has to be borne by the owner. In future, the growth of pet insurance and other related sectors will be tremendous and will become a profitable and sustainable enterprise. Already, the European and American markets are recording booming growth, and the trend seems to be expanding in developing nations like Asia and Latin America, Africa and other nations. In times the companies might even provide veterinarians visits, pet hospitality etc., to capture new business. The role of veterinarian and collaboration with public or private companies will help percolate the significance and much needed pet or cattle insurance to the owners (on cost benefits), ensuring growth of the sector in India and world alike.
So, avoid a sudden burn in your pocket, prioritise and get your furry family member insured today.
Dr A. K.Wankar is Assistant Professor, Veterinary Physiology, College of Veterinary & Animal Sciences , Parbnahi.
Mili Sharma is BV Sc & AH Final Year Student, College of Veterinary & Animal Sciences , Parbnahi.
References 1. Ugalmugle, S. and Swain, R. (2020). Pet Insurance Market Size by Policy Coverage (Accident Only, Accident & Illness), By Animal (Cat, Dog), By Provider (Public Private), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast,
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