The COVID-19 pandemic has presented huge challenges for the retail sector this year, with many traditional high-street retailers struggling to survive and a number going out of business. On the flip side, the pandemic has created a surge of consumer demand in specific areas, opening opportunities for retailers nimble enough to adapt.
Pet care is a notable example. More and more people have taken on pets in 2020 with a significant increase in overall spending on pet care, from quality food and dog walking to insurance and healthcare. Walmart has quickly responded to this trend by announcing the expansion of its pet care services in the US last month. Walmart Pet Care aims to provide a complete range of pet services, including pet insurance, for the 90 million pet owners who currently shop at Walmart. And the company predicts that this figure will increase.
Billions spent on our pets
Even before the pandemic, the American Pet Products Association (APPA) found that 67 percent of US households owned a pet, spending almost $100 billion dollars on their furry friends in 2019. The prediction is for a 3.5 percent increase on this figure in 2020-2021. However, it would be no surprise if this increase is much higher when the next survey is published.
There is a clear opportunity in the US market for retailers and insurers to offer pet insurance, as pet health and happiness becomes integrated with family life. Despite 2.5 million pets being insured in the US in 2019, Walmart rightly notes that this leaves a staggering 98 percent of pets remaining uninsured with owners responsible for vet and medication bills.
Pet insurance made simple using digital technology
At Aquarium, our digital insurance platform makes it easy for retailers to create their own competitive pet insurance offerings. Already, Aquarium is working with many of the world’s best known insurance brands to deliver efficient and cost-effective pet insurance tailored to specific customer needs.
By using Big Data, artificial intelligence and machine-learning, Aquarium’s platform gathers and analyses pet insurance data in real-time to automate policy and claims management processes. It also guides every pet owner through the decision process to secure the most appropriate and accurate policy for their pet no matter what breed, what age or whether it has existing medical conditions.
Read more here about how Aquarium’s technology is transforming pet insurance.