United Kingdom (UK) Pet Insurance Market Dynamics, Trends and Opportunities

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United Kingdom (UK) Pet Insurance Market Report Overview

The United Kingdom (UK) pet insurance market size was GBP1.75 billion in 2023. The market grew at a significant rate as compared to 2022. The UK pet insurance market was largely driven by an increase in the number of policyholders, especially for dogs, and an increase in average premiums across all categories. Rising veterinary expenses over 2024 and beyond may compel more risk-averse consumers to opt for insurance as a means of managing the financial burden associated with one-off vet bills. This will further lead the UK pet insurance market to garner a CAGR of more than 6% from 2023 to 2028.

UK Pet Insurance Market Outlook 2023-2028 (GBP Billion)

UK Pet Insurance Market Outlook 2023-2028 (GBP Billion)

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The United Kingdom (UK) pet insurance market research report examines the size of the market, the nature of the claims landscape, as well as upcoming regulatory changes. The report provides an overview and analysis of the UK pet insurance industry with detailed analysis and comparison of incumbent competitors. The report also provides a forecast of market size through to 2028, while examining key future impactors in the market.

Market Size (2023) ·       GBP1.75 Billion
CAGR (2023-2028) ·       >6%
Key Segments ·       Dog Insurance

·       Cat Insurance

·       Other Pet Insurance

Leading Companies ·       Allianz

·       RSA

·       Red Sands

·       Pinnacle Insurance

·       UK Insurance

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UK Pet Insurance Market - Trends

A few of the key trends shaping the UK pet insurance market are the capitalization of emerging pet technologies and engagement with digital trends for brand exposure.

The UK pet insurance market is relatively saturated, with limited options for brand differentiation besides premium rates. However, the proportion of individuals turning to social media to learn about different pet insurance policies is rapidly increasing. The power of social media in the digital landscape is exceptional, and social media influencers are rapidly becoming an effective way of marketing products for companies. Pet insurers can leverage these trends to enhance customer engagement and improve customer experience. Data insights generated by social media can help insurers tailor their products and marketing strategies more effectively.

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UK Pet Insurance Market Segments

The pet insurance market can be segmented into dog insurance, cat insurance, and other pet insurance. The dog insurance segment dominated the UK pet insurance market in 2023 in terms of average claim cost, average premium, gross claim incurred, and number of policyholders among others.

UK Pet Insurance Market Analysis by Segments, 2023 (%)

UK Pet Insurance Market Analysis by Segments, 2023 (%)

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UK Pet Insurance Market - Competitive Landscape

 

A few of the leading companies in the UK pet insurance market are:

  • Allianz
  • RSA
  • Red Sands
  • Pinnacle Insurance
  • UK Insurance

Allianz was responsible for the largest share of premiums in the pet insurance market in 2023. The growth of the company can largely be attributed to the continued dominance of its subsidiary, Petplan.

RSA maintained second place in 2023. The company continued to integrate its underwriting partnerships with established brands such as Tesco Bank, More Than, M&S Bank, and John Lewis. This collaboration with household names accounts for RSA’s historic success in the market.

UK Pet Insurance Market Analysis by Companies, 2023 (%)

UK Pet Insurance Market Analysis by Companies, 2023 (%)

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Scope

  • This report explores how purchasing preferences have changed over time in the UK pet insurance market.
  • The report elaborates on what is most influential to customers when purchasing a pet insurance policy and reveals the most popular providers in the market.
  • New trends and innovations are highlighted in the report, as well as the key factors that will influence the market over the next few years.

Key Highlights

  • In 2023, Petplan and Animal Friends registered double-digit market shares.
  • The top 10 providers accounted for the majority of the market.
  • Direct Line was the only new entry to the top 10 for cat insurance in 2023, although there were changes in the positions of the other providers. Tesco Bank recorded the largest market share increase among the top 10 cat insurance providers.

Reasons to Buy

  • Understand consumer purchasing decisions and how these will influence the market over the next few years.
  • Improve customer engagement by recognizing what is most important to them and how insurers can adapt their products and services to meet their needs.
  • Compare the Net Promoter Scores of key insurance providers.
  • Discover which providers lead the way in the pet insurance space and learn about new product innovations.
  • Adapt your distribution strategy to ensure it still meets customer purchasing behavior.

UK Pet Food
RSPCA
Go.Compare
PDSA
Allianz
Petplan
Pets at Home
RSA
Red Sands
Tesco Bank
More Than
John Lewis
M&S Bank
Animal Friends
Pinnacle Insurance
Admiral
Post Office
Sainsbury’s
Pet Protect
Churchill
Direct Line
U K Insurance
Post Office
Argos
Aviva
Tractive

Table of Contents

  • 1. Executive Summary

    • 1.1. Market overview
    • 1.2. Key findings
    • 1.3. Critical success factors

  • 2. Pet Insurance Market Dynamics

    • 2.1. The pet insurance market grew by

      7.7% in 2023

    • 2.2. Increases in the number of policyholders and premiums led to GWP growth in 2023
    • 2.3. The number of pet insurance policyholders continued to see solid growth in 2023
    • 2.4. Dog insurance remains the dominant component of GWP
    • 2.5. Average premiums vary by type of pet
    • 2.6. The number of claims notified has reached a new record
    • 2.7. Gross claims incurred continued to rise in 2023, reaching almost GBP1.2 billion
    • 2.8. The average claim varies considerably depending on the type of pet

  • 3. The Structure of the UK Pet Insurance Market

    • 3.1. Allianz remains the key player, while RSA exits the market
    • 3.2. Policy features from the top providers
    • 3.3. PetPartners launches OnePack Plan, an employer-based group insurance offering

  • 4. The Market Going Forward

    • 4.1. The market is set to continue growing
    • 4.2. Dog insurance will remain the dominant segment
    • 4.3. The power of social media
    • 4.4. Reducing costs will be key for pet insurers

  • 5. Appendix

    • 5.1. Abbreviations, acronyms, and initialisms
    • 5.2. Methodology
    • 5.3. Secondary Sources
    • 5.4. Further reading

  • 6. About GlobalData
  • 7. Contact US

Table

Table 1: Breakdown of the pet insurance market by product, 2022

Table 2: The claims landscape in the pet insurance market, 2018–22

Table 3: Average claims cost by pet, 2018–22

Table 4: Petplan’s pet insurance products

Table 5: Animal Friends’ pet insurance products

Table 6: Tesco Bank’s pet insurance products

Table 7: The split of the pet insurance market, 2022–27

Figures

Figure 1: UK pet insurance GWP grew by 12.8% in 2022

Figure 2: The number of pet insurance policyholders continued to grow in 2022

Figure 3: Dog insurance accounted for more than two thirds of total policyholders in 2022

Figure 4: Inflation is expected to have peaked in 2022

Figure 5: Dogs accounted for 78.5% of pet insurance GWP in 2022

Figure 6: The average premium for other pets fell by 19.8% in 2022

Figure 7: The cost of veterinary services and other services for pets is rising

Figure 8: The total number of reported claims increased by 28.4% in 2022 to reach a record high

Figure 9: The total confirmed value and volume of fraudulent claims reached record highs in 2022

Figure 10: Gross claims incurred increased by 16.8% in 2022

Figure 11: The average dog claim fell by 8.5% in 2022 – the first decrease since 2017

Figure 12: There is room for growth for tracking technology to monitor pets in the UK

Figure 13: Allianz was responsible for the largest share of premiums in the pet insurance market in 2022

Figure 14: Allianz accounted for the most contracts in 2022

Figure 15: The pet insurance market is set to reach just under GBP2 billion by 2027

Figure 16: There is potential for growth in the pet insurance market

Figure 17: There will be 4.6 million pet insurance policyholders by 2027

Figure 18: Forecasting methodology

Frequently asked questions

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