Nowadays, we take out insurance policies to give us financial protection for just about everything in our lives. We insure our businesses, our homes, our cars, even our lives against surprise contingencies.
So it’s not surprising that we also protect our pets.
That’s right – increasingly, we do. Perhaps a few years ago, no one would have thought to take out an insurance policy for their cat or dog, but times are changing, and it’s now becoming more common for people to purchase a little extra financial security to support their pet ownership.
It’s becoming more common for people to purchase a little extra financial security to support their pet ownership.
This may sound strange to the more old-fashioned pet owners out there, but it actually makes a good deal of sense.
Behind the rise of pet insurance
Perhaps in a previous generation, we focused only on more serious applications like business insurance, and insuring pets was a nonstarter. Nowadays, however, people are beginning to think critically about how they invest in insurance, and really, any area with significant expenses is fair game.
CNN reported that it’s increasingly common for people to protect themselves against the financial liabilities that come with pet ownership. For example, the news outlet reported that one American cat owner took his feline to the vet and discovered that two teeth would need to be pulled because of cavities, at an expense of $1,000.
With costs like that, it’s no wonder that people are investing in insurance to protect themselves financially.
Observing the growing marketplace
Pet insurance may only have been seen as a niche interest for many years, but there’s a growing market for it today. In fact, research from IBIS World shows that during the five-year period between 2015 and 2020, annual sales of such insurance policies are expected to increase at a rate of 6.8 per cent each year, reaching $1 billion by the end of the decade.
There are still plenty of markets where the pet insurance industry has room for growth. IBIS World found that in Sweden today, 30 per cent of pets are already covered, and in the United Kingdom, it’s 23 per cent. Only 1 per cent are covered, however, in the U.S. This means there’s still plenty more potential ahead.
We specialise at MGA
Insurance for pets is a fairly small niche industry, but at MGA, it’s one of the things we’re truly great at because we specialise in it.
Contact us today about pet insurance, and not only will you receive guidance with basic needs like health care, but you can also get personalised plans that include groomers, walkers, pet sitters and more. The options are almost endless. If you care deeply about your pet, insurance just might be an investment worth making.