Reportlinker Adds Pet Insurance in North America, 4th Edition

NEW YORK, Nov. 3, 2010 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Pet Insurance in North America, 4th Edition

http://www.reportlinker.com/p087174/Pet-Insurance-in-North-America-4th-Edition.html

Now in its fourth edition, Packaged Facts' Pet Insurance in North America is the most comprehensive examination of the U.S. and Canadian pet insurance markets available and a must-have for any company interested in this dynamic industry. Although sales growth slowed due to the recession, revenues (measured as gross written premiums) remained in the double digits in 2009 while delivering a 2005-2009 compound annual growth rate of 21%. Packaged Facts expects the North American market for pet insurance to continue to chart strong annual increases over the next five years, with the high level of competitive activity helping to offset the slow economic recovery and ongoing challenge of communicating the value of pet health insurance to budget-watching consumers.

As of 2010, industry pioneer Veterinary Pet Insurance (VPI) continues to lead the market. However, both the U.S. and the Canadian pet insurance markets have experienced significant market share shifts during the past five years as more than a half dozen new companies have come onto the field. Each of these companies brings with it unique strengths, in some cases including potent co-marketing affiliations with powerful brands (e.g., PetPartners and the AKC, PurinaCare with its own famous name), and in other cases including important retail channel thrusts (e.g., PetFirst with Kroger and Petfinder.com, and Trupanion with Petco). The industry is also seeing more investment backing and large insurance companies coming into the market as underwriters, including Aon with Healthy Paws, Aetna with Pets Best, and Berkshire Hathaway with PurinaCare.

Based on primary research including interviews with every leading pet insurance provider in North America, this latest edition of Packaged Facts' groundbreaking 2003 report offers a road map for competing in this market both now and in the years ahead. All of the top players are profiled in depth, including VPI, Pethealth, Hartville (ASPCA), Western Financial/Petsecure, PetFirst, PetPartners (AKC), Vetinsurance/Trupanion, Pets Best, Embrace, Fetch (Petplan USA) and PurinaCare. Statistics provided include historical and projected market revenues, number of policies in force, and company shares (both U.S. and Canadian), along with profiles of pet owners and pet insurance purchasers, based on data from sources including Experian Simmons, The American Pet Products Association, and Packaged Facts own consumer surveys.

Chapter 1: Executive Summary

Introduction

Scope of Report

Report Methodology

Market Analysis

Consumer Analysis

Market Size and Composition

North American Market Growth Continues

Looking Ahead

Figure 1-1: North American Pet Insurance Market Revenues: United States, Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars)

Number of Policies in Force

Veterinary Chanel Feels Recessionary Pinch But Retains Upward Curve

Competitive Overview

Top North American Marketers

Figure 1-2: Estimated Share of North American Pet Insurance Market by Company, 2005 vs. 2009 (percent)

Market Share Shifts

Competitive Trends

Consumer Trends

Pet Ownership Overview

Figure 1-3: Household Ownership Rates for Selected Pet-Owning Classifications, 2010 (percent of U.S. households)

Pet Owners and Insurance

Chapter 2: Market Trends

Introduction

Market Definition

Equine Insurance Excluded

Range of Coverage

Typical Restrictions

Gross Written Premiums and Conversion Rates

Market Size and Composition

North American Market Growth Continues

Table 2-1: North American Pet Insurance Market Revenues: United States, Canada, and North America, 2005-2009 (in millions of U.S. dollars)

Figure 2-1: Share of North American Pet Insurance Market: United States vs. Canada, 2002-2009 (percent)

Number of Policies in Force

Figure 2-2: North American Pet Insurance Market: Number of Pet Insurance Policies in Force, 2005-2009

Share of Policies by Animal Type

Figure 2-3: Share of U.S. Pet Insurance Market Revenues by Animal Type, 2009 (percent)

Market Outlook

Recession Takes a Toll

A Stuttering Recovery

Pet Owners Not Immune to Economic Downturn

Figure 2-4: Level of Agreement with Statement "I Am Spending Less on Pet Products These Days Because of the Economy," 2010 (percent of U.S. pet owners)

Table 2-2: Economic Outlook of U.S. Pet Owners: Now vs. Last 12 Months (percent)

Figure 2-5: Level of Agreement with Statement "I Anticipate Spending More on Pet Products Over the Next 12 Months," 2010 (percent of U.S. pet owners)

Table 2-3: Economic Outlook of U.S. Pet Owners: Now vs. Next 12 Months (percent)

Veterinary Chanel Feels Recessionary Pinch But Retains Upward Curve

Figure 2-6: Percentage of Dogs and Cats Given Medication and/or Drugs: 2000-2008 (percent)

Table 2-4: Veterinarian Visits, Expenses and Services Received, 2008 (number, percent and dollars)

Table 2-5: Average U.S. Household Expenditures on Veterinary Services, 1998-2008 (in dollars)

Veterinarians Lining Up Behind Pet Insurance

Figure 2-7: Percentage of Veterinarians Who Actively Recommend Pet Insurance, 1997-2009

Figure 2-8: Percentage of Veterinarians Who Would Like to See Wider Use of Pet insurance by Year of Veterinary School Graduation

Consumer Awareness/Trade Support/Media Coverage Up

North American Pet Health Insurance Month

Improving PR

North American Pet Health Insurance Association (NAPHIA)

Schwarzenegger Axes California Pet Insurance Bill

Human/Animal Bond a Potent Force

Figure 2-9: "Consider My Pet(s) Part of the Family": By Percent of Pet, Dog/Cat, Dog and Cat Owners, February 2009 (percent)

Table 2-6: Mean Number of Veterinary Visits: By Human/Animal Bond Among Dog and Cat Households, 2006

Table 2-7: Mean Veterinary Expenditures: By Human/Animal Bond Among Dog and Cat Households, 2006 (in dollars)

Growing Populations of Dogs and Cats

Table 2-8: Number of Dogs and Cats in the United States: 2000, 2002, 2004, 2006 and 2008 (number in millions and percent)

Figure 2-10: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2010 (percent of U.S. households)

Internet Popularity Among Pet Owners a Plus

Table 2-9: Level of Pet Owner Agreement with Statement: "I Use the Internet to Help Find and Choose Pet Products," February 2010 (percent)

Table 2-10: Level of Pet Owner Agreement with Statement: "I Buy Pet Products Online," February 2010 (percent)

Table 2-11: Selected Internet-Related Psychographics: Adults Overall vs. Dog or Cat Owners, 2010 (percent and index)

Impact of Aging Pet Population

Figure 2-11: Percentage of Dogs and Cats Age 6 and Over: 1996 vs. 2006 (percent)

Impact of Pet Overweight, Obesity

Table 2-12: Percentage and Number of Overweight and Obese Dogs and Cats, 2009

Increased Competition/Channel Expansion

Shift Away from Credit Usage Bodes Well

Table 2-13: Credit Card Ownership and Usage: By Frequency, 2005-2010 (percent)

Looking Ahead

Figure 2-12: Projected North American Pet Insurance Market Revenues: United States, Canada, and North America, 2009 vs. 2014 (in millions of U.S. dollars)

Chapter 3: Competitive Overview

Market Share Trends

Top North American Marketers

Figure 3-1: Estimated Share of North American Pet Insurance Market: By Company, 2005-2009 (percent)

Figure 3-2: Estimated Share of U.S. Pet Insurance Market: 10 Companies, 2009 (percent)

Figure 3-3: Estimated Share of U.S. Pet Insurance Market: By Company, 2005-2009 (percent)

Figure 3-4: Estimated Share of Canadian Pet Insurance Market: By Company, 2005-2009 (percent)

Market Share Shifts

Table 3-1: North American Marketers of Pet Insurance, October 2010

Competitive Trends

A New Ball Game

Figure 3-5: Cumulative Share of North American Pet Insurance Market Revenues: Over 5% Share Companies vs. Under 5% Share Companies, 2005-2009

Differentiation to the Fore

The Underwriting Advantage

Company Snapshot: PurinaCare Insurance Services, Inc.

Table 3-2: PurinaCare Monthly Ultimate Premiums Estimate, June 2008-November 2009 (in dollars)

Enter Healthy Paws—and Aon

Next Up: PetSafe

More International Cross-Over

Internet More Important Than Ever

The Company Benefits Thrust

Competition from Alternative Payment Options

CareCredit

Pet Assure

Banfield

Other

Looking Ahead

Chapter 4: Competitor Profiles

Competitor Profile: Embrace Pet Insurance

Background

Company Positioning

Recessionary Adjustments

Competitor Profile: Hartville Group, Inc

Company Overview

Types of Plans

Management Shakeup Yields Growth

Company Voluntarily Delists Stock

ASPCA Venture Going Strong

Illustration 4-1: ASPCA Pet Insurance Ad in Veterinary Practice News (June 2010)

Hartville Premiums Up in 2009

Figure 4-1: Hartville Group Gross Written Pet Insurance Premiums, 2001-2009 (in millions of dollars)

Number of Active Policies at Approximately 120,000

Figure 4-2: Hartville Group Number of Active Pet Insurance Policies, 2001-2009

Ongoing Strong Consumer Focus

Increased Focus on Veterinary, Company Benefits Channels

Competitor Profile: PetFirst Healthcare LLC

Company Overview

Company Strategy

Focus on Simplicity

More Choices

Ramping Up Online

The Kroger Connection

The Petfinder.com Connection

The Home Again Connection

Expansion in Company Benefits Arena

Competitor Profile: Pethealth, Inc.

Company Overview

Revenue Growth

Table 4-1: Pethealth Revenues, 2001-2009 (in millions of Canadian dollars)

Pet Insurance Operations

Brokers

Underwriting

U.K. Market Entry

EVE Online Claims Processing

North American Pet Insurance Performance

Table 4-2: Pethealth Pet Insurance North American Gross Written Premiums, 2001-2009 (in millions of U.S. dollars)

Table 4-3: Number of Pethealth Pet Insurance North American Policies in Force, 2001-2009

United States v. Canada

Table 4-4: Share of Pethealth Pet Insurance North American Gross Written Premiums: U.S. vs. Canada, 2005-2009 (percent)

Pet Insurance Programs and Marketing

Non-Insurance Operations

PetPoint Shelter Management Software

24PetWatch Pet Registry Services

Petango.com

Competitor Profile: PetPartners, Inc.

Company Background

AKC and CFA Policy Types

AKC and CFA Program Marketing

Illustration 4-2: AKC Pet Insurance Ad in AKC Family Dog (April/May 2010)

Company Launches PetPartners "Gemstone Brand," Expands into Company Benefits Arena

New Partner Programs

Company Profile: Petplan USA (Fetch, Inc.)

Company Overview

The U.K. Connection

The HSUS Connection

Media Focus

Illustration 4-3: Promotional Banner for Fetch Magazine

Illustration 4-4: Petplan Print Ad: Bark Magazine (May/June 2009)

Competitor Profile: Pets Best Insurance Services

Company Overview

The AVMA GHLIT Partnership

Product Positioning

Illustration 4-5: Pets Best Ad in Animal Wellness (December/January 2010)

Channel Focus

Affinity Relationships

Illustration 4-6: ChaseHealthAdvance and Pets Best Joint Marketing Ad (May 2009)

Competitor Profile: Veterinary Pet Insurance Co.

Company Overview

Company Realigns with Focus on Consumer Advocacy

Commitment to Benefit Schedule

Belief in Indemnity Insurance

Adherence to Regulation

A New Product Roster

Emphasizing Wellness Care

2009 Revenues of $184 Million

Table 4-5: Veterinary Pet Insurance Gross Written Premium 1998-2009 (in millions of dollars)

Advertising Spending and Themes

"That's a Good Human" Campaign Launched

Illustration 4-7: VPI Print Ad: "That's A Good Human" Campaign

Public Relations Mix "Fun Facts" with Pet Health Tips

Web-Based Marketing and Support

The Iams Connection

Veterinary Channel Remains VPI Focus

Industry Leader in Voluntary Benefits Arena

Competitor Profile: Vetinsurance International (Trupanion)

Company Background

Trade Approach

Trupanion Plus Petco

Consumer Approach

Illustration 4-8: Trupanion Trade Ad (Veterinary Practice News, June 2010)

Policy Changes

Trupanion Online

Cause Marketing

Competitor Profile: Western Financial Insurance Company

Company Background

Western Financial In

Petplan Out

Pet Insurance Brands and Channels

Most Recommended Brand in Veterinary Channel

Adoptsecure Offered in Shelter Channel

Premiums, Policies Continue Upward Trend

Table 4-6: Western Financial Pet Insurance Gross Written Premiums, 2003-2009 (in millions of U.S. dollars)

Table 4-7: Western Financial Pet Insurance Number of Active Policies, 2005-2009

Company Launches Value-Priced Option: Petset

Hbc Brand Launched in 2008

PurinaCare Canada

PC Financial Brand Targets Loblaw Supermarket Crowd

CAA Brand Reserved for Auto Club Members

Strategic Alliances

Public Relations and Cause Marketing

Chapter 5: Consumer Trends

Pet Ownership Overview

Methodology and Data Sources

52% of Households Keep Pets

Figure 5-1: Household Ownership Rates for Selected Pet-Owning Classifications, 2010 (percent of U.S. households)

Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications, 2005, 2007, and 2010 (percent of U.S. households)

Overall Demographics for Dog Owners

Regional Skews by Number of Dogs Owned

Overall Demographics for Cat Owners

Household Composition Skews by Number of Cats Owned

Table 5-2: Demographics for Dog Ownership, 2010 (percent, number of households, and index)

Table 5-3: Selected Demographics for Keeping One Pet Dog, 2010 (percent, number of households, and index)

Table 5-4: Selected Demographics for Keeping Two or More Pet Dogs, 2010 (percent, number of households, and index)

Table 5-5: Demographics for Cat Ownership, 2010 (percent, number of households, and index)

Table 5-6: Selected Demographics for Keeping One Pet Cat, 2010 (percent, number of households, and index)

Table 5-7: Selected Demographics for Keeping Two or More Pet Cats, 2010 (percent, number of households, and index)

Pet Owners and Insurance

APPA Consumer Surveys Show Rise in Pet Insurance Ownership Rates

5% of Dog Owners With a HH Income of $60K+ Carry Pet Insurance

Figure 5-2: Prime Demographics for Purchasing of Dog Insurance, 2008 (percent of U.S. dog owners)

Cat Insurance Usage Rates Show Opposite Pattern by HH Income

Figure 5-3: Pet Insurance Ownership Patterns by Household Income: Dog Owners vs. Cat Owners, 2008 (percent of U.S. dog or cat owners)

Vets Are Most Important Source for Pet Insurance Awareness

Figure 5-4: Sources from Which Dog or Cat Owners Become Familiar with Pet Insurance, 2010 (percent)

37% of Dog/Cat Owners Are Not Familiar with Pet Insurance Policies

Figure 5-5: Levels of Familiarity with Pet Policies Among Dog or Cat Owners Who Do Not Carry Insurance, 2010 (percent)

Top Reasons for Not Having Pet Insurance Policies

Figure 5-6: Reasons for Not Carrying Pet Insurance: Dog or Cat Owners, 2010 (percent)

Table 5-8: Demographic Characteristics for Purchasing of Dog Insurance, 2008 (percent of U.S. dog owners)

Table 5-9: Top Demographic Characteristics Favoring Purchasing of Cat Insurance, 2008 (percent of U.S. adults)

Appendix: Company Addresses

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