Technology could unlock the full potential of the pet insurance market
Overcoming the limitations of technological adoption in the insurance sector remains an issue. But while the majority of policyholders are still uncomfortable with the concept of being monitored and tracked, pet insurance policyholders are increasingly using tracking and monitoring devices for their pets.
GlobalData’s 2019 consumer survey highlights that 17% of pet insurance holders are using smart devices or tools to monitor or manage their pet’s health. An additional 43% indicated they would be interested in using this technology in the future.
In contrast, GlobalData’s 2018 survey found that only 14% of pet insurance holders are using smart devices or tools to monitor or manage their pet’s health.
GlobalData’s UK Pet Insurance: Market Dynamics and Opportunities 2019 report found that the UK pet insurance market saw a considerable decline in the rate of growth in 2018, with GWP only increasing by 0.3% compared with £1,190m ($1.54bn) in 2017. The incorporation of this technology into policies could help to increase the uptake of pet insurance, allowing the market to reach its maximum potential size of £3,046m.
Further evidence that technology is becoming increasingly adopted in the market is the rise of Swedish start-up FirstVet. FirstVet recently secured £15.8m in series B funding for its on-demand video veterinary appointments platform. The start-up provides on-demand video appointments to more than 200,000 registered users across five markets: the UK, Norway, Denmark, Finland, and Sweden. FirstVet has also partnered with over 20 insurance companies, including Bought By Many a provider known for providing innovative solutions in the UK pet insurance market.
Pet insurers should take advantage of the current trends in the market and develop policies that include more tracking and monitoring technology for pets. These technology-packed polices could also be a great way for insurers to detect fraudulent claims in pet insurance, and gamify polices through reward-based systems. This will not only allow for greater cost efficiency for pet insurers, but it would also provide a path for policyholders to feel comfortable using tracking and wearable technology in their premiums.