As more and more millennials have entered the workforce, pet ownership has increased dramatically among the generation. The reason for this is that millennials are typically renters or live in cities where they can’t keep a cat at home. In addition, as millennials are starting to get older, they’re looking to replace their aging parents with a pup of their own. As a result, pet insurance startups are being launched in an effort to ensure owners are covered for both animal and human health issues.
In the past two years, the number of pet insurance policies has tripled. The types of cat and dog policies have also matured. For example, if your dog is injured in a motor vehicle accident, you’ll find coverage for the full costs of repairing or replacing your dog’s ear, or amputating his or her limbs should they become paralyzed. Policies may also cover lost wages if your pet needs to spend time at the vet after an accident.
Pet insurance companies have also been exploring new technology. A recent study published by the American Pet Products Association [APPA], which focuses on pet product sales, found that about one in five owners purchases an insurance product that tracks their pets’ locations through a smartphone application or a wearable collar. According to this data, approximately $75 million in pet insurance products is sold each year using these new technologies.
Even as insurance companies continue to explore new technology for pet owners and create more sophisticated policies, many dog and cat owners are skeptical of purchasing such products. A recent Mintel report found that 44 percent of pet owners believed their dogs and cats could survive without proper medical attention in the event they got sick or injured while away from home.
In order for pet insurance startups to fully reach the animal-loving millennial market, these companies will have to convince these potential customers that pet insurance is a crucial component of owning a dog or cat.
