Insurtech investment around the world is booming – reaching record levels for the first half of 2021, according to the recent Quarterly InsurTech Briefing from Willis Towers Watson. Worldwide insurtech investment reached $7.4 billion in the first half of 2021, exceeding investment in the whole of 2020 and every other previous year. This growth reflects the fact that consumers and businesses increasingly expect insurance to be delivered when and how they want it.
The surge in insurtech investment is partly being driven by the demand for companies to meet the growth of pet insurance around the world. The pet insurance market has boomed following a rapid increase in the number of people buying pets during the global pandemic.
In April the Association of British Insurers (ABI) reported that more than one million owners chose to insure their cats in 2020, with the value of claims handled at a record high, up ten per cent on 2019. Also, new research suggests that globally the pet insurance market for dogs and cats is expected to reach its highest compound annual growth rate (CAGR) by 2026.
But there is still huge growth potential in the global market, with national markets like the USA still set to experience enormous growth. Less than three percent of the USA’s pets are currently covered by insurance compared with an average of roughly 20 per cent across European markets, according to IBISWorld.
Even though American pet owners spent an all-time record of almost $2 billion on pet health insurance in 2020, this market is predicted to grow significantly year on year as more owners take out pet insurance policies. In the UK, only around 25-30 per cent of pet owners hold pet insurance policies, which again means there is significant growth potential in the market.
This means continued growth for insurtech as more firms seek to capitalise on the attractive long-term opportunities in pet insurance and other insurance markets. Currently the pet insurance market is underserved, so there is plenty of room for growth.
Aquarium believes the growth of insuretch and that digital innovation in pet insurance is continuing at pace, which is in turn driving significant growth for policy providers. Pet insurance is a high growth product and if the service is right customers will want policies for many years to come.