Dog and cat owners take out pet insurance to cover the costs that might arise from having a pet – accidental injuries, veterinary surgeries, prescribed medications. When it comes to households with more than one pet – two cats, a dog – these costs can really mount up.
So while it’s still a relatively small sector of the insurance industry, pet insurance is growing fast with the global pet insurance market set to reach a value of USD 11.25 billion by the end of 2026. In South Africa, this trend is reflected- by the end of 2019, one South African insurer said that over 60% of households it insured had pet insurance, covering more than 100 000 pets.
“The growth of pets as a retail category has been exponential, as has the related growth of pet insurance. As one of the leading insurance SaaS platform enablers, we enable both insurers and affinity partners such as pet stores, vets or pet food suppliers to drive increased customer satisfaction and incremental revenues and profits.” Daniel Guasco, Click2Sure founder.
Read on if you are:
- An insurer offering pet insurance but looking for a better way to do it.
- An insurer who’d like to add digital pet insurance to your customer offering.
- A brand passionate about pet welfare and care wanting to deepen the relationship with your customers (and bring in some extra revenue)
Why the sustained growth in pet insurance?
We can speculate that it’s because pets are increasingly becoming much-loved family members, with more and more households feeling a responsibility to grant their animals the same right to medical care as they do their human family members.
Also, during the global pandemic, the bonds between pets and humans have grown stronger. With lockdowns and the new work-from-home lifestyle, more single people have adopted pets – and all of us have spent much more time with our cats or dogs, making us more aware of their welfare. Whether our pet is a pedigree breed or a “street special” with a missing ear and a weird bark, we love them the same – and want to be able to rush them to the vet when needed, without worrying about money.
There’s a more technical reason, which is that pet insurance has become more widely visible to consumers, as well as faster and easier to take out, thanks to the fast-growing trend of embedded insurance. This is technology that enables a digital insurance offering to be built into almost any transaction at the point of sale. Two examples:
- You pick up a bag of dog food from the supermarket and there’s a QR code on the pack and an invitation to scan it with your phone and take out pet insurance, with a free month to start (it’s so easy to take up the offer, you think why not?).
- You choose a Rogz harness and leash at the vet, and see that it’s tagged with an offer to take out pet insurance as a Value Added Service (this makes you think about what dog walks can entail, like speeding drivers or encounters with non-leashed dogs; you decide to take out insurance).
What makes embedded insurance more compelling than traditional insurance?
Unlike traditional insurance which is something they might look into later, whenever they get around to it, embedded insurance is offered to consumers when it feels most relevant to them – in the case of pet insurance, just they are shopping for their pets and most likely to have their welfare top of mind, as the above examples show. Since it’s relevant, they are interested – and since it’s easy to apply with a few simple clicks, they do. So, psychology plus convenience are driving what is predicted to be a $3 trillion embedded insurance market globally.
Three important thoughts to leave you with:
- As the world continues to worry about Covid-19, trend analysis shows there is a great need for brands to demonstrate more empathy to consumers; offering easy pet insurance is a way to show empathy for both consumers and their “fur babies”
- Given the sustained growth of both pet insurance and embedded insurance, there is significant revenue potential in positioning yourself where the two meet.
- Whether you’re a traditional insurer looking for a digital pet insurance partner, or a company passionate about increasing insurance cover for South African pets, we can launch your new offering in 30 days.
Call +27 (10) 045 4019 or e-mail firstname.lastname@example.org if this is an opportunity you’d like to look into (ahead of competitors).