North American pet insurance sales up

North American pet insurance gross written premiums will reach $618 mio in 2013, up 15 per cent from $539 mio in 2012, according to market research institute Packaged Facts’ recently released report, Pet Insurance in North America, 5th Edition. The United States accounted for $536 mio of the segment’s total in 2013, with Canada comprising the remainder. Both markets posted growth over the previous year, with sales increasing 16 per cent in the US and 9 per cent in Canada. Veterinary Pet Insurance (VPI), based on its commanding presence in the US, claims the largest share of the North American market, at 41 per cent of gross written premiums (GWPs).
The North American pet health insurance market should continue charting healthy annual increases over the next five years, according to Packaged Facts. Packaged Facts research director David Sprinkle reports that North American gross written premiums will reach $ 962 mio in 2018, with the industry crossing the billion dollar threshold by the end of the decade.
Despite this robust level of market dynamism, the industry continues to feel the impact of the recession, as well as consumer resistance to this still relatively novel form of health insurance. Pet insurance penetration in the United States remains at less than 2 per cent of pet owners, compared with rates as high as 25 per cent in the UK and 50 per cent in Sweden. Even so, the level of competitive activity is at an all-time high, and partnerships and a strengthening of the various sales channels will help the North American pet insurance industry to continue to expand.