Asia Pacific Pet Insurance Market Size

Asia-Pacific Pet Insurance Market Analysis

The Asia-Pacific pet insurance market is anticipated to grow at a CAGR of nearly 6.5% during the forecast period (2022-2027).

The COVID-19 pandemic is expected to have an impact on the pet insurance market in the Asia-Pacific region as the CVOID-19 pandemic was very prevalent in the region, and the emergence of the pandemic was China. The pandemic affected the pets in different ways, for example, the pet clinics were closed so the ongoing or new diagnostic and treatment procedures for pets were impacted, many pets were left alone due to the lockdown restrictions, and the chance of contracting COVID-19 from their owner or on close contact with some other person. For instance, according to a research study published in May 2020 titled 'Dogs caught coronavirus from their owners, genetic analysis suggests', it was observed that dogs can get COVID-19 from their owners and detected viral RNA and antibodies in dogs, and live virus in one of the dogs. Further, COVID-19 had a significant impact on the adoption of pets (especially abandoned animals), which is further expected to significantly impact the studied market. For instance, according to an article published in December 2020, titled 'More People are Adopting Furry Companions Amid the Pandemic', the president of People for Animals (PFA) Gautam Buddha Nagar, India initially during pandemic, the pet abandonment rate was high but after that, the adoption rate also increased after July-August 2020. Hence, COVID-19 is expected to have a significant impact on the Asia-Pacific pet insurance market.

The increasing adoption of pets in the region is expected to be a major growth driving factor for the pet insurance market in the region to the growing adoption of pets, the number of pet insurance is also expected to increase as out-of-pocket costs for pets in the region is very high and insurance can cover that. For instance, according to the Household, Income and Labor Dynamics in Australia (HILDA) Survey report of 2021, two-thirds of Australians have pets, with 48% having dogs, and 37% having a cat, followed by fish, birds, and other animals. Also, as per the same source, about 59% of pet owners have only one species of animal, compared to 24% who have two, and 17% who have three or more. Similarly, according to a survey report released by the Ministry of Agriculture, Food and Rural Affairs of South Korea, in 2020, 6.38 million homes were reported to be owning a pet, an increase of 8% from the 5.91 million households in 2019 and the average spending on dogs was reported to be KRW 176,000 and KRW 149,900 on cats. Thus, the high adoption of pets in the region is expected to fuel growth in the pet insurance market in the Asia-Pacific region over the forecast period.

The high cost associated with pet care and increasing awareness about pet insurance is another factor that is expected to play a crucial role in the growth of the pet insurance market as high pet care costs can compel the pet owners to own insurance for their pets which can reduce their out-of-pocket cost. For instance, according to an article published in December 2020 titled 'Chinese pet owners call for tighter regulations amid high veterinarian costs', a physical inspection at the hospital costs CNY 479 while a dental wash costs roughly CNY 528, which is quite high. Also, as per the same source, one of the owners of the cat reported paying CNY 1,500 for her treatment. Further, the promotion of pet insurance and the launch of new products in the region is expected to increase the adoption of pet insurance which is expected to have a positive impact on the studied market. For instance, the Korean Government has planned to launch a program to promote the adoption of local pet insurance adoption as per their 110 national task agenda items. Thus, owing to the factors mentioned above, the Asia-Pacific pet insurance market is expected to grow over the forecast period of the study. However, the lack of awareness and low adoption of pet insurance in emerging economies in the region is expected to restrain the growth of the studied market during the forecast period.