OD4612 Pet Insurance Industry Report Essay

Submitted By mscalpato
Words: 8944
Pages: 36

Pet Insurance in the US October 2012 1

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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

IBISWorld

writes over 700 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com

WWW.IBISWORLD.COM

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

The Pet…