Pet insurance market has huge potential in China

Date: 2020-06-17 Compiler:

Pet insurance has appeared in China for some years now.

In 2004, Huatai Insurance launched a comprehensive family insurance, which included pet liability in the form of additional insurance. In 2005, CPIC Beijing Branch launched Beijing Dog Owner's Liability Insurance in the form of main insurance. In 2008, Shenzhen Taiping Insurance Company launched a pet third-party liability insurance. The early stage of pet insurance is mainly liability insurance. It was not until September 2014 that PICC and Ping An Property & Casualty first involves pet medical insurance, and successively launched the pet medical insurance "Pet Le Insurance" and the pet comprehensive insurance "Pet Treasure". After that, pet medical insurance gradually became popular in China.

In recent years, traditional insurance company or a new type of pet medical and service company are aiming pet insurance market, even capital companies are waiting to take action. On May 9, 2019, One Degree, a Hong Kong internet pet insurance company, received a $30 million A+ round of funding from BitRock Capital and other joint investments. 

There are more than 510,000 pet dogs and cats in Hong Kong, and 3% of them are insured. Pet insurance has been developing in China for nearly two decades, but it has always been in a tepid state. At present, the coverage rate of domestic pet insurance in China is less than 1%, far lower than 40% in Sweden and 25% in the UK.

Expert believes that, because the market education is not done well enough, many pet owners do not know that there are pet insurance products on the market. Secondly many people think that their pets usually look healthy and won’t get sick at all.

When selling pets, pet insurance becomes additional product is a way to increase penetration. At the same time, promotion of insurance is placed in pet hospitals.

There are 99.15 million pets in China, the overall prospect of the market volume is still very large. Pet insurance can reduce the choice cost of the owner when the pet is facing a disease, and allow the pet to be treated in time, which has a positive significance for reducing the economic burden of the pet owner while providing better medical service for the pet. The survey results of Aurora Big Data show that the proportion of pets who have received medical treatment in the past year exceeded 55%, of which 25% were 2-3 times and 10% were 4-5 times. With the scale and standardization of pet hospitals, cheap medical care is no longer existed. The improvement of technology and the rising prices of medicines and equipment have made the entire cost of medical treatment gradually increase. Before 2015, pet owners may be relatively affordable, but after that, they began to turn to medical insurance slowly.