Safe and hound: Future is bright as pet’s esteem grows in households, disposable incomes rise
IBISWorld Industry Report OD4612
Pet Insurance in the US
October 2012
Andrew Krabeepetcharat
2 About this Industry
13 International Trade
2
Industry Definition
14 Business Locations
2
Main Activities
2
Similar Industries
16 Competitive Landscape
25 Industry Data
2
Additional Resources
16 Market Share Concentration
25 Annual Change
16 Key Success Factors
25 Key Ratios
3 Industry at a Glance
24 Industry Assistance
25 Key Statistics
16 Cost Structure Benchmarks
17 Basis of Competition
4 Industry Performance
18 Barriers to Entry
4
Executive Summary
18 Industry Globalization
4
Key External Drivers
5
Current Performance
19 Major Companies
7
Industry Outlook
19 VPI Pet Insurance
9
Industry Life Cycle
20 ASPCA Pet Health Insurance
11 Products & Markets
22 Operating Conditions
11 Supply Chain
22 Capital Intensity
11 Products & Services
23 Technology & Systems
12 Demand Determinants
23 Revenue Volatility
12 Major Markets
24 Regulation & Policy
26 Jargon & Glossary
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Pet Insurance in the US October 2012 2
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About this Industry
Industry Definition
This industry underwrites insurance policies for pets and pays veterinary costs related to illness or injury.
Main Activities
The primary activities of this industry are
Underwriting health and medical insurance policies for pets
Managing care between pet care provider and individual recipient
Third-party administration of self-funded insurance plans
The major products and services in this industry are
Cat insurance
Dog insurance
Other insurance
Similar Industries
52411b Health & Medical Insurance in the US
This industry underwrites (assumes the risks of and assigns premiums for) health and medical insurance policies 54194 Veterinary Services in the US
Establishments in this industry provide veterinary services.
81291 Pet Grooming & Boarding in the US
Operators in this industry provide pet grooming and boarding services.
Additional Resources
For additional information on this industry www.americanpetproducts.org American Pet Products Association www.petage.com Pet Age Magazine www.petbusiness.com Pet Business
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Pet Insurance in the US October 2012
3
Industry at a Glance
Pet Insurance in 2012
Key Statistics
Snapshot
Revenue
Annual Growth 07-12
Annual Growth 12-17
Profit
Wages
Businesses
$650.6m 6.0%
5.5%
$44.2m $67.2m 14
Number of households
Revenue vs. employment growth
Market Share
130
ASPCA Pet Health
Insurance 23.0%
15
125
Millions
20
% change
VPI Pet Insurance
61.0%
10
5
0
Year 04
120
115
06
Revenue
08
10
12
14
16
110
Year 04
18
06
08
10
12
14
16
18
Employment
SOURCE: WWW.IBISWORLD.COM
p. 19
Products and services segmentation (2012)
1.3%
Key External Drivers
Other insurance
Number of households
Number of pets
(cats and dogs)
30.8%
Cat insurance
Per capita disposable income Homeownership rate
67.9%
Dog insurance
p. 4
SOURCE:
WWW.IBISWORLD.COM
SOURCE:
WWW.IBISWORLD.COM
Industry Structure
Life Cycle Stage
Growth
Regulation Level
Revenue Volatility
Low
Technology Change
Capital Intensity
Low
Barriers to Entry
Industry Assistance
Low
Industry Globalization
Concentration Level
High
Competition Level
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 25
Medium
High
Medium
Low
Medium
Pet Insurance in the US October 2012 4
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Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive
Summary
