Market Trends of Asia Pacific Pet Insurance Industry
This section covers the major market trends shaping the APAC Pet Insurance Market according to our research experts:
Chronic Conditions by Policy is Expected to Hold a Significant Share Over the Forecast Period
Some of the chronic diseases that affect pets include cancer, liver disease, diabetes, and endocrine disorders among others which requires very long-term care and therapeutics thus, chronic condition on pets are found to be very costly for the owner and as these chronic diseases are very common, the adoption of pet insurance for chronic diseases is expected to be high as it can save a significant cost of the owner and also, the pet can be provided adequate treatment on time, due to which the studied segment is expected to grow over the forecast period. For instance, according to a research study published in February 2020, titled 'Incidence and Histopathological Studies on Tumors of Dog in Bengaluru, India', it had been observed that the incidence of cancer in dogs is increasing over the years due to the increasing life expectancy and technological advancements in the veterinary diagnostics techniques and cancer is one of the leading causes of dogs aged around 10 years old, with 50% of them developing the disease and approximately one in four succumb to mortality and hence, the adoption of pet insurance for chronic conditions is expected to increase over the forecast period.
Further, according to a research study titled 'Long-Term Assessment of Risk Factors For Canine Tumors Registered in Xi'an, China', there is a growing concern due to an increase in the tumor incidence in pet dogs in China and as per the findings of the study, the findings, the most common type of tumor was found in the reproductive system (39.84%), followed by cutaneous tumors (28.05%), digestive tumors (18.70%), and ocular tumors (4.47%). In addition, with the technological advancements in the diagnostics and treatment methods for pets' diseases, the number of treatment and diagnostic procedures is increasing which is further expected to increase the adoption of pet insurance in the region and tap the potential of the market, the companies in the region are launching new lucrative plans that are expected to have a significant impact on the market. For instance, in March 2022, Future Generali India Insurance Company Limited (FGII) launched FG Dog Health Cover, comprehensive health insurance for pet dogs that covers terminal illness, surgery and hospitalization, and mortality along with other features. Therefore, due to the factors mentioned above, the chronic conditions segment is expected to hold a significant share in the pet insurance market in Asia-Pacific over the forecast period.
China is Expected to a Major Market in the Asia-Pacific Health Insurance Market Over the Forecast Period
In the Asia-Pacific health insurance market, China is expected to hold a significant share in the studied market due to the presence of a high number of pets in the country and their increasing adoption along with the rising burden of diseases in pets in the country. For instance, according to the January 2022 report of the Pethadoop, a platform specializing in China's pet sector, about 58 million pet cats and 54 million pet dogs lived in urban households in China as of last year, and cats made up 59.5 percent of all the pets owned by the 30,000 respondents questioned. Also, as per the same source, the trend of owning a pet is increasing in China which is expected to be the major driving factor for the growth of the studied market in the country. Further, according to the June 2022 report published by the Australian Trade and Investment Commission, the factors that are driving an increment in pet ownership in China include: an increase in discretionary income making it possible for households to spend more on pets; a growing older population looking for animal companions as the older Chinese generation usually only has one child, which has increased the emphasis on treating pets as surrogate children; and, Chinese millennials are getting married later and giving their pets more family status. Hence, the adoption of pets in China is expected to increase during the forecast period which is expected to drive the pet insurance market in China. Moreover, the high cost associated with the diagnostics and treatment of pets is further expected to increase the adoption of pet insurance in the country as the veterinary cost is usually very high in China. For instance, as per the February 2022 report of the China Pet Industry Association, including healthcare costs, in 2021, the average expenditure on dogs was about USD 406, while for cats it was USD 280 in China. Therefore, due to the above-mentioned factors, China is expected to be a major market in the pet insurance market in the Asia-Pacific region.
