US pet insurance market revenue to reach $10bn
The pet insurance market is thriving despite COVID-19 and will experience rapid growth over the next five years. The report concluded this is due to increasingly high veterinary bills, and customers preferring to take out policies rather than face paying such high prices for their pets medical treatment, which can easily reach the $20k mark.
The biggest sector for insurance within the pet industry is cover for dogs, mainly because treatment for them tends to be more expensive and commonplace than other household animals. Policies for dogs cover a wide number of breeds and purposes, including working dogs, farm dogs, security dogs, toy breeds and mongrel pets.
The pet insurance industry has also become highly competitive over the past few years, with market leaders including Nationwide, Petplan, Pethealth, Trupanion and more, jostling for first position. The accident and illness sector alone is forecast to grow by 8.5% by 2025, with an increasing number of companies offering pet insurance policies.
Private providers own 93.8% of the market share, and many of them offer creative medical cover plans, which include complimentary treatment, emergency boarding and even compensation in the event of a pet being stolen or lost.
Referring to the sector growth, one industry analyst said, “Pet insurance still appears to be an attractive market for providers to enter and offers real opportunities for providers wishing to grow their personal lines in terms of untapped premiums. In addition, it is a product area that arguably many see as completing the suite of personal lines offerings, which is evidenced by the growth we have seen in the number of policies available and providers operating in the sector."
He added, “On the flip side, the choice available to consumers in terms of the volume of products and the types of cover has complicated a product that should be straightforward to market and sell. In terms of taking advantage of the potential within the pet insurance sector, simplicity is the way forward for providers. New entrants should seek to support product launches with consumer education and, given the potential for consumer detriment from providers exiting the market, ensure that they are in the sector for the long haul.”
Insurance companies are also securing their position in the market through several strategies that include collaborations, partnerships, M&A and more.
Tribe and APOLLO announce national insurance campaign
Tribe Property Technologies in partnership with APOLLO insurance has announced a national insurance campaign to digitise insurance for condominium owners, renters, landlords, and developers across Canada. The aim of the campaign is to make insurance access easier and faster for owners while improving the coverage and protection of condominiums and rental buildings.
According to several surveys, nearly half of 4.5mn rented houses in Canada do not have tenant insurance protection, meaning those individuals and their families are put at risk of fire and water damage.
What does the national insurance campaign include?
According to Tribe, the company is working with APOLLO to ensure that this type of insurance is easier to access. It aims to achieve this by introducing a direct connection to APOLLO's insurance technology from both Tribe's strata and condo management platform and rental software to allow for increased education and awareness for owners into insurance risks and options.
It also includes the future ability for notifications for mid-term cancellations, and plans to offer protection from potential strata/condo corporation deductibles, Tribe said.
"We are excited to partner with APOLLO to bring accessibility, visibility, and education around insurance options to our communities and reflect the current lifestyle expectations of condo owners and residents while protecting the value of their biggest assets", said Joseph Nakhla, Chief Executive Officer of Tribe.
Nakhla added: “This agreement with APOLLO is just the first step under our Digital Services & Partnerships revenue pillar. We will continue to layer on services to drive revenue for Tribe, and bring convenience and savings for our users, with the goal of being able to offer a one-stop-shop to our development partners and the over 100,000 residents in Tribe-managed communities”.
APOLLO uses technology as a channel between insurance brokers, carriers, and their mutual clients, offering insurance options from multiple companies on one integrated online platform.
"We like that Tribe is taking a fresh approach to condo living and building smart homes through tech-enabled service, and an integration with their Community Platform supports our goals of making insurance more accessible and supporting the needs of communities”, said Jeff McCann, Chief Executive Officer of Apollo.