COVID-19 Brings a Spike in Pet Insurance | Faegre Drinker Biddle & Reath LLP

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Throughout the pandemic in each the U.S. and abroad, shelters, nonprofit rescues, private breeders and pet stores have reported higher demand for pet ownership than the variety of pets to fill it. Not surprisingly, recent pet ownership also brought higher veterinary costs and sales of other pet goods and services. One such service: pet insurance. Within the U.S., based on a 2021 report from the North American Pet Health Insurance Association (NAPHIA), 3,101,956 pets were insured in 2020, 23.2% higher than in 2019, leading the pet insurance industry to surpass $2.17 billion in premiums paid. In Canada, pet insurers reportedly sold $244.6 million in premiums, a 17.2% increase since 2019. A London-based pet insurance provider increased its cat and dog policy sales by greater than 150% during the last yr.

The increased variety of insured pets could also be attributed to the growing number of latest pet owners, the strengthened bond between existing pets and their owners while working from home or the rise of mental distress reported in pets through the pandemic. Unfortunately, the dramatic shift in pets’ schedules during stay-at-home orders caused a lot of these animals to experience stress, typically manifested in attention-seeking conduct, similar to constant barking or unwelcomed bathroom behavior. Pet insurance policy covering the veterinary costs related to diagnosing behavioral problems in pets was as a pretty solution to pandemic-related mental health concerns.

The rise in pet ownership and pet insurance sales affects one more variable, too: employment decisions. While pet insurance sales soared this past yr, worker retention rates plummeted, and the 2 rates could also be more related than we expect. In accordance with research from the National Association of Insurance Commissioners (NAIC), the fastest growing type of pet insurance distribution is thru worker profit packages. Actually, a Nationwide Human-Animal Bond Research Study found that out of 2002 full-time employees, 72% of employees who’ve pet insurance through worker advantages would turn down an identical job with comparable pay at one other, non-pet-friendly company, while only 44% of employees in non-pet-friendly corporations reported the identical. The study also found that 88% of employees who work in pet-friendly spaces recommend their employer to others in comparison with only 51% of employees in jobs where pets aren’t welcome.

Studies show that millennials prioritize their pets greater than every other demographic. A Health Pocket poll reports 62% of millennials say they might put their pets’ health before their very own. By way of retaining an existing worker base in addition to attracting recent, young talent, employers may begin to off-fur pet insurance advantages to spice up worker retention and application rates, appealing to the growing variety of pet owners within the workforce.

The expansion within the pet insurance market sparked by the pandemic is projected to proceed well after the stay-at-home orders and pet owners, pet insurers, employees and employers alike will begin to position themselves based on this mewvement.