For more on this part of the insurance industry:
1. visit our animals insurance page for a look at all products in this sector
2. or focus in on all of the pet insurance products available on IB Markets!
Pet insurance helps pet owners manage rising veterinary costs, which have been increasing due to factors like advanced diagnostics and an ageing pet population. In 2024, around 30% of dog owners and 21% of cat owners have insurance, despite 66% of Australian households owning pets. Pet insurance was valued at $239.8 million in 2023 and is projected to grow significantly.
Australians own a diverse range of pets, including common companions like dogs and cats, as well as exotic species such as birds, reptiles, and small mammals.
The country’s deep cultural bond with animals underscores the importance of protecting their health through insurance. This provides financial relief during emergencies, aligning with the nation's strong commitment to animal welfare.
The pet insurance industry in Australia faces many gaps in coverage, with only a small fraction of pet owners securing policies. Rising veterinary costs and proposals like ‘animal Medicare’ highlight the growing financial pressures on owners.
Emerging trends and risks in this sector demand innovative approaches to meet consumer and broker needs. Some of these trends and risks include:
global growth in pet coverage: the market could reach significant value by 2033, fuelled by rising pet ownership and higher spending on pet care
supporting future veterinarians: new scholarships aim to help aspiring vets, highlighting education's role in enhancing pet healthcare quality and availability
innovative insurance approach: increased pet adoption and shifting demographics are driving new opportunities for pet insurance solutions in Australia
High veterinary costs, averaging $1,715 for cats and $3,218 for dogs annually, leave 80% of Australian pet owners anxious about their pets' health expenses. Brokers should guide clients towards policies that address these challenges, particularly for ageing pets and rising treatment costs.
Who typically needs pet insurance coverage?
Pet insurance helps various stakeholders. It is useful for:
Australian pet insurance offers peace of mind and financial protection for anyone responsible for pets.
The optimal dog insurance in Australia offers comprehensive coverage, including accidents, illnesses, and routine care. Policies should cover up to 80% of eligible vet bills, with annual benefit limits around $12,000. It is essential to compare policies to find one that suits the dog's specific needs.
In Australia, many insurers set an upper age limit for new dog insurance policies, often around 9 years. However, some providers may offer coverage for older dogs, though premiums might be higher. It is advisable to check specific policy terms for age restrictions.
Common age restrictions include minimum ages (e.g., 8 weeks) and maximum ages (e.g., 9 years) for new policies. Existing policies may continue coverage as pets age, provided premiums are paid.
This began in Sweden in 1890, focusing initially on horses and livestock. The first dog insurance policy was issued in Sweden in 1924. The concept expanded globally, reaching Australia in the late 20th century.
Claes Virgin, founder of the Swedish insurance company Agria, introduced the first pet coverage policy in 1890.
The first dog insured was in Sweden in 1924, marking the expansion of this insurance beyond livestock.
Agria, established in Sweden in 1890, is among the oldest providers of pet coverage, initially covering livestock and later expanding to pets.
As of recent data, approximately 7% of Australian pet owners have pet coverage, indicating a big opportunity for market growth.
Trends include increasing pet ownership, rising veterinary costs, and greater awareness of pet health, all contributing to the growth of the market in Australia.
Claiming on pet insurance can reduce out-of-pocket expenses for unexpected veterinary bills, making it a valuable investment for many pet owners.
