The UK pet insurance market witnessed significant expansion in 2022, with a notable 12.8% surge in gross written premiums (GWP), culminating in a market worth £1.58 billion.
This growth accompanied an 11.1% rise in policyholders compared to the previous year, showcasing a growing interest in pet insurance among UK households, a newly released report reveals.
Despite the growth, the report highlights that only a fraction of pets were insured in 2022, totalling to just 24.2% of dogs and 11.9% of cats. This statistic suggests a substantial potential for market expansion in the upcoming years. Forecasts indicate a continued annual rise in GWP from 2022 to 2027, with a projected compound annual growth rate (CAGR) of 4.8% during this period. By 2027, GWP is anticipated to escalate to GBP1.99 billion, primarily driven by unavoidable increases in premiums due to the mounting costs of veterinary care.
Pet Insurance Market Scope and Insights
In 2022, the dog insurance segment dominated the market, accounting for the largest share of policyholders (69.2%), GWP (78.5%), and claims (77.7%). Meanwhile, cat insurance constituted 18.5 percent of GWP and 27.9 percent of policyholders, with other pets making up 3 percent of GWP and 2.9% of policyholders.
While average premiums for dogs and cats experienced marginal rises, premiums for other pets witnessed a notable decrease of 19.8 percent from 2021 to 2022. However, this period also saw a significant surge in reported claims, marking a 28.4% increase and reaching an all-time high in 2022.
