Market growth restrained by changing pet ownership patterns

In its latest report, Pet Insurance in the UK – 2006, Defaqto identifies how changing social patterns are affecting dog ownership and consequently sales of pet insurance policies.

According to the report, the pet insurance market is valued at around £275 million per year, making it the smallest market by value of any major insurance product group. However, with only 17% of cats and 32% of dog being insured, the potential market would exceed £1 billion if all pets were insured.

In the mid 1990s the number of pet cats overtook the number of pet dogs, partly as a result of changing lifestyles. With more single person households and longer working hours, fewer people have the time to look after a dog and with the dog population somewhat static, the real growth opportunities lie in the cat insurance market.

Brian Brown, Head of Defaqto’s Insight Team and author of the report said, “Despite the massive supply of insurance policies from all types of outlets, many owners, particularly of cats and non-pedigree dogs, have never experienced a large veterinary claim and therefore do not necessarily perceive a need for cover. In addition, some owners have deliberately chosen self – insurance, recognising there is a risk but deciding to pay the bills as they arise”.