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Pet Insurance in North America, 4th Edition

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  • 1. Get more info on this report!Pet Insurance in North America, 4th EditionNovember 1, 2010Now in its fourth edition, Packaged Facts’ Pet Insurance in North America is the mostcomprehensive examination of the U.S. and Canadian pet insurance markets availableand a must-have for any company interested in this dynamic industry. Although salesgrowth slowed due to the recession, revenues (measured as gross written premiums)remained in the double digits in 2009 while delivering a 2005-2009 compound annualgrowth rate of 21%. Packaged Facts expects the North American market for petinsurance to continue to chart strong annual increases over the next five years, with thehigh level of competitive activity helping to offset the slow economic recovery andongoing challenge of communicating the value of pet health insurance to budget-watching consumers.As of 2010, industry pioneer Veterinary Pet Insurance (VPI) continues to lead themarket. However, both the U.S. and the Canadian pet insurance markets haveexperienced significant market share shifts during the past five years as more than ahalf dozen new companies have come onto the field. Each of these companies bringswith it unique strengths, in some cases including potent co-marketing affiliations withpowerful brands (e.g., PetPartners and the AKC, PurinaCare with its own famousname), and in other cases including important retail channel thrusts (e.g., PetFirst withKroger and Petfinder.com, and Trupanion with Petco). The industry is also seeing moreinvestment backing and large insurance companies coming into the market asunderwriters, including Aon with Healthy Paws, Aetna with Pets Best, and BerkshireHathaway with PurinaCare.Based on primary research including interviews with every leading pet insuranceprovider in North America, this latest edition of Packaged Facts’ groundbreaking 2003report offers a road map for competing in this market both now and in the years ahead.All of the top players are profiled in depth, including VPI, Pethealth, Hartville (ASPCA),Western Financial/Petsecure, PetFirst, PetPartners (AKC), Vetinsurance/Trupanion,Pets Best, Embrace, Fetch (Petplan USA) and PurinaCare. Statistics provided includehistorical and projected market revenues, number of policies in force, and companyshares (both U.S. and Canadian), along with profiles of pet owners and pet insurancepurchasers, based on data from sources including Experian Simmons, The AmericanPet Products Association, and Packaged Facts own consumer surveys.
  • 2. Chapter 1: Executive Summary Introduction Scope of Report Report Methodology Market Analysis Consumer Analysis Market Size and Composition North American Market Growth Continues Looking Ahead Figure 1-1: North American Pet Insurance Market Revenues: United States, Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars) Number of Policies in Force Veterinary Chanel Feels Recessionary Pinch But Retains Upward Curve Competitive Overview Top North American Marketers Figure 1-2: Estimated Share of North American Pet Insurance Market by Company, 2005 vs. 2009 (percent) Market Share Shifts Competitive Trends Consumer Trends Pet Ownership Overview Figure 1-3: Household Ownership Rates for Selected Pet-Owning Classifications, 2010 (percent of U.S. households) Pet Owners and InsuranceChapter 2: Market Trends Introduction Market Definition Equine Insurance Excluded Range of Coverage Typical Restrictions Gross Written Premiums and Conversion Rates Market Size and Composition North American Market Growth Continues Table 2-1: North American Pet Insurance Market Revenues: United States, Canada, and North America, 2005-2009 (in millions of U.S. dollars) Figure 2-1: Share of North American Pet Insurance Market: United States vs. Canada, 2002-2009 (percent) Number of Policies in Force Figure 2-2: North American Pet Insurance Market: Number of Pet Insurance Policies in Force, 2005-2009 Share of Policies by Animal Type Figure 2-3: Share of U.S. Pet Insurance Market Revenues by Animal Type, 2009 (percent) Market Outlook Recession Takes a Toll A Stuttering Recovery
  • 3. Pet Owners Not Immune to Economic DownturnFigure 2-4: Level of Agreement with Statement “I Am Spending Less on PetProducts These Days Because of the Economy,” 2010 (percent of U.S. petowners)Table 2-2: Economic Outlook of U.S. Pet Owners: Now vs. Last 12 Months(percent)Figure 2-5: Level of Agreement with Statement “I Anticipate Spending More onPet Products Over the Next 12 Months,” 2010 (percent of U.S. pet owners)Table 2-3: Economic Outlook of U.S. Pet Owners: Now vs. Next 12 Months(percent)Veterinary Chanel Feels Recessionary Pinch But Retains Upward CurveFigure 2-6: Percentage of Dogs and Cats Given Medication and/or Drugs: 2000-2008 (percent)Table 2-4: Veterinarian Visits, Expenses and Services Received, 2008 (number,percent and dollars)Table 2-5: Average U.S. Household Expenditures on Veterinary Services, 1998-2008 (in dollars)Veterinarians Lining Up Behind Pet InsuranceFigure 2-7: Percentage of Veterinarians Who Actively Recommend PetInsurance, 1997-2009Figure 2-8: Percentage of Veterinarians Who Would Like to See Wider Use ofPet insurance by Year of Veterinary School GraduationConsumer Awareness/Trade Support/Media Coverage UpNorth American Pet Health Insurance MonthImproving PRNorth American Pet Health Insurance Association (NAPHIA)Schwarzenegger Axes California Pet Insurance BillHuman/Animal Bond a Potent ForceFigure 2-9: “Consider My Pet(s) Part of the Family”: By Percent of Pet, Dog/Cat,Dog and Cat Owners, February 2009 (percent)Table 2-6: Mean Number of Veterinary Visits: By Human/Animal Bond AmongDog and Cat Households, 2006Table 2-7: Mean Veterinary Expenditures: By Human/Animal Bond Among Dogand Cat Households, 2006 (in dollars)Growing Populations of Dogs and CatsTable 2-8: Number of Dogs and Cats in the United States: 2000, 2002, 2004,2006 and 2008 (number in millions and percent)Figure 2-10: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2010(percent of U.S. households)Internet Popularity Among Pet Owners a PlusTable 2-9: Level of Pet Owner Agreement with Statement: “I Use the Internet toHelp Find and Choose Pet Products,” February 2010 (percent)Table 2-10: Level of Pet Owner Agreement with Statement: “I Buy Pet ProductsOnline,” February 2010 (percent)Table 2-11: Selected Internet-Related Psychographics: Adults Overall vs. Dog orCat Owners, 2010 (percent and index)
  • 4. Impact of Aging Pet Population Figure 2-11: Percentage of Dogs and Cats Age 6 and Over: 1996 vs. 2006 (percent) Impact of Pet Overweight, Obesity Table 2-12: Percentage and Number of Overweight and Obese Dogs and Cats, 2009 Increased Competition/Channel Expansion Shift Away from Credit Usage Bodes Well Table 2-13: Credit Card Ownership and Usage: By Frequency, 2005-2010 (percent) Looking Ahead Figure 2-12: Projected North American Pet Insurance Market Revenues: United States, Canada, and North America, 2009 vs. 2014 (in millions of U.S. dollars)Chapter 3: Competitive Overview Market Share Trends Top North American Marketers Figure 3-1: Estimated Share of North American Pet Insurance Market: By Company, 2005-2009 (percent) Figure 3-2: Estimated Share of U.S. Pet Insurance Market: 10 Companies, 2009 (percent) Figure 3-3: Estimated Share of U.S. Pet Insurance Market: By Company, 2005- 2009 (percent) Figure 3-4: Estimated Share of Canadian Pet Insurance Market: By Company, 2005-2009 (percent) Market Share Shifts Table 3-1: North American Marketers of Pet Insurance, October 2010 Competitive Trends A New Ball Game Figure 3-5: Cumulative Share of North American Pet Insurance Market Revenues: Over 5% Share Companies vs. Under 5% Share Companies, 2005- 2009 Differentiation to the Fore The Underwriting Advantage Company Snapshot: PurinaCare Insurance Services, Inc. Table 3-2: PurinaCare Monthly Ultimate Premiums Estimate, June 2008- November 2009 (in dollars) Enter Healthy Paws—and Aon Next Up: PetSafe More International Cross-Over Internet More Important Than Ever The Company Benefits Thrust Competition from Alternative Payment Options CareCredit Pet Assure Banfield Other
  • 5. Looking AheadChapter 4: Competitor Profiles Competitor Profile: Embrace Pet Insurance Background Company Positioning Recessionary Adjustments Competitor Profile: Hartville Group, Inc Company Overview Types of Plans Management Shakeup Yields Growth Company Voluntarily Delists Stock ASPCA Venture Going Strong Illustration 4-1: ASPCA Pet Insurance Ad in Veterinary Practice News (June 2010) Hartville Premiums Up in 2009 Figure 4-1: Hartville Group Gross Written Pet Insurance Premiums, 2001-2009 (in millions of dollars) Number of Active Policies at Approximately 120,000 Figure 4-2: Hartville Group Number of Active Pet Insurance Policies, 2001-2009 Ongoing Strong Consumer Focus Increased Focus on Veterinary, Company Benefits Channels Competitor Profile: PetFirst Healthcare LLC Company Overview Company Strategy Focus on Simplicity More Choices Ramping Up Online The Kroger Connection The Petfinder.com Connection The Home Again Connection Expansion in Company Benefits Arena Competitor Profile: Pethealth, Inc. Company Overview Revenue Growth Table 4-1: Pethealth Revenues, 2001-2009 (in millions of Canadian dollars) Pet Insurance Operations Brokers Underwriting U.K. Market Entry EVE Online Claims Processing North American Pet Insurance Performance Table 4-2: Pethealth Pet Insurance North American Gross Written Premiums, 2001-2009 (in millions of U.S. dollars) Table 4-3: Number of Pethealth Pet Insurance North American Policies in Force, 2001-2009 United States v. Canada
  • 6. Table 4-4: Share of Pethealth Pet Insurance North American Gross WrittenPremiums: U.S. vs. Canada, 2005-2009 (percent)Pet Insurance Programs and MarketingNon-Insurance OperationsPetPoint Shelter Management Software24PetWatch Pet Registry ServicesPetango.comCompetitor Profile: PetPartners, Inc.Company BackgroundAKC and CFA Policy TypesAKC and CFA Program MarketingIllustration 4-2: AKC Pet Insurance Ad in AKC Family Dog (April/May 2010)Company Launches PetPartners “Gemstone Brand,” Expands into CompanyBenefits ArenaNew Partner ProgramsCompany Profile: Petplan USA (Fetch, Inc.)Company OverviewThe U.K. ConnectionThe HSUS ConnectionMedia FocusIllustration 4-3: Promotional Banner for Fetch MagazineIllustration 4-4: Petplan Print Ad: Bark Magazine (May/June 2009)Competitor Profile: Pets Best Insurance ServicesCompany OverviewThe AVMA GHLIT PartnershipProduct PositioningIllustration 4-5: Pets Best Ad in Animal Wellness (December/January 2010)Channel FocusAffinity RelationshipsIllustration 4-6: ChaseHealthAdvance and Pets Best Joint Marketing Ad (May2009)Competitor Profile: Veterinary Pet Insurance Co.Company OverviewCompany Realigns with Focus on Consumer AdvocacyCommitment to Benefit ScheduleBelief in Indemnity InsuranceAdherence to RegulationA New Product RosterEmphasizing Wellness Care2009 Revenues of $184 MillionTable 4-5: Veterinary Pet Insurance Gross Written Premium 1998-2009 (inmillions of dollars)Advertising Spending and Themes“That’s a Good Human” Campaign LaunchedIllustration 4-7: VPI Print Ad: “That’s A Good Human” CampaignPublic Relations Mix “Fun Facts” with Pet Health Tips
  • 7. Web-Based Marketing and Support The Iams Connection Veterinary Channel Remains VPI Focus Industry Leader in Voluntary Benefits Arena Competitor Profile: Vetinsurance International (Trupanion) Company Background Trade Approach Trupanion Plus Petco Consumer Approach Illustration 4-8: Trupanion Trade Ad (Veterinary Practice News, June 2010) Policy Changes Trupanion Online Cause Marketing Competitor Profile: Western Financial Insurance Company Company Background Western Financial In Petplan Out Pet Insurance Brands and Channels Most Recommended Brand in Veterinary Channel Adoptsecure Offered in Shelter Channel Premiums, Policies Continue Upward Trend Table 4-6: Western Financial Pet Insurance Gross Written Premiums, 2003-2009 (in millions of U.S. dollars) Table 4-7: Western Financial Pet Insurance Number of Active Policies, 2005- 2009 Company Launches Value-Priced Option: Petset Hbc Brand Launched in 2008 PurinaCare Canada PC Financial Brand Targets Loblaw Supermarket Crowd CAA Brand Reserved for Auto Club Members Strategic Alliances Public Relations and Cause MarketingChapter 5: Consumer Trends Pet Ownership Overview Methodology and Data Sources 52% of Households Keep Pets Figure 5-1: Household Ownership Rates for Selected Pet-Owning Classifications, 2010 (percent of U.S. households) Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications, 2005, 2007, and 2010 (percent of U.S. households) Overall Demographics for Dog Owners Regional Skews by Number of Dogs Owned Overall Demographics for Cat Owners Household Composition Skews by Number of Cats Owned Table 5-2: Demographics for Dog Ownership, 2010 (percent, number of households, and index)
  • 8. Table 5-3: Selected Demographics for Keeping One Pet Dog, 2010 (percent,number of households, and index)Table 5-4: Selected Demographics for Keeping Two or More Pet Dogs, 2010(percent, number of households, and index)Table 5-5: Demographics for Cat Ownership, 2010 (percent, number ofhouseholds, and index)Table 5-6: Selected Demographics for Keeping One Pet Cat, 2010 (percent,number of households, and index)Table 5-7: Selected Demographics for Keeping Two or More Pet Cats, 2010(percent, number of households, and index)Pet Owners and InsuranceAPPA Consumer Surveys Show Rise in Pet Insurance Ownership Rates5% of Dog Owners With a HH Income of $60K+ Carry Pet InsuranceFigure 5-2: Prime Demographics for Purchasing of Dog Insurance, 2008 (percentof U.S. dog owners)Cat Insurance Usage Rates Show Opposite Pattern by HH IncomeFigure 5-3: Pet Insurance Ownership Patterns by Household Income: DogOwners vs. Cat Owners, 2008 (percent of U.S. dog or cat owners)Vets Are Most Important Source for Pet Insurance AwarenessFigure 5-4: Sources from Which Dog or Cat Owners Become Familiar with PetInsurance, 2010 (percent)37% of Dog/Cat Owners Are Not Familiar with Pet Insurance PoliciesFigure 5-5: Levels of Familiarity with Pet Policies Among Dog or Cat OwnersWho Do Not Carry Insurance, 2010 (percent)Top Reasons for Not Having Pet Insurance PoliciesFigure 5-6: Reasons for Not Carrying Pet Insurance: Dog or Cat Owners, 2010(percent)Table 5-8: Demographic Characteristics for Purchasing of Dog Insurance, 2008(percent of U.S. dog owners)Table 5-9: Top Demographic Characteristics Favoring Purchasing of CatInsurance, 2008 (percent of U.S. adults)
  • 9. Available immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=2588709US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004

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