In the post recesssion era, where financial services providers are doing their best to retain current clients while seeking lucrative potential clients, Healthy 50+ Consumers have become a top priortiy.

New Research Study: Healthy 50+ Americans: Trends and Opportunities in the Emerging Wellness Market In the post recesssion era, where financial services providers are doing their best to retain current clients while seeking lucrative potential clients, Healthy 50+ Consumers have become a top priortiy. As a result of their level of educational achievement and higher professional and managerial employment rate, Healthy 50+ Consumers have higher incomes. And when compared to their peers in the same age group, Healthy 50+ Consumers are more likely to have a household income of $100,000 or more. Financial providers will benefit from the analysis and insight inside this brand-new research study. In addition to taking advantage of the latest trends and opportunities in the Healthy 50+ cohort, you will: Uncover the financial management habits and attitudes of Healthy 50+ Americans, including their perceptions on financial security, economic outlook and their preferences for credit cards, life insurance, stock trading and tax preparation. Craft business plans with our aggregate household income forecast through 2015. Understand the attitudes of Healthy 50+ Americans regarding education, eating habits, core values and leisure and entertainment choices. Gain insight into the economic profile of Healthy 50+ Americans and why this cohort will be your best bet for expansion in the five years ahead. More information: Price/Info   |   Table of Contents   |   Place an Order

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The Future of Pet Insurance in North America

The North American market for pet health insurance has never been more competitive. During the past five years the number of established players has doubled, and all of the companies now in the market appear to be on solid ground. Where is this market headed? How will companies incorporating distinct trends now impact the industry in the next five years? Furthermore, what business strategies will maximize their bottom line?

Presentation authored and read by David Lummis, Senior Pet Market Analyst, Packaged Facts

Pet Insurance in North America, 4th Edition—Blog Entry



David Lummis



As the pet market analyst for Packaged Facts, I started covering this market in 2003.  Wow.  Talk about a market that’s come a long way—and yet still has a long way to go.  Back in 2000, the market was valued at under $50 million, with almost all of those sales coming from a single company, Veterinary Pet Insurance (which founded the market in 1980).  In the fourth edition of our report, released on Monday October 18, 2010, sales were at $354 million, with a dozen companies established in the North American market.

If that sounds like phenomenal 10-year growth it’s because it is, at approximately 600%.  But get this:  This figure still represents less than 1% of the 180 million-plus dogs and cats in North America.  That means (doing a little very rough math) that if the level rises to 10%, we’ll be looking at a market worth $3.5 billion, and with 25% of dogs and cats insured, a market worth nearly $9 billion.  This isn’t out of the question, since about one-quarter and one-half of dogs and cats are insured in the United Kingdom and Sweden, respectively.  There’s a lot going in the North American market right now too, including major insurance companies weighing in as underwriters, such as Aon with Healthy Paws, Aetna with Pets Best, and Berkshire Hathaway subsidiary Central States Indemnity Co. of Omaha with PurinaCare.

Still, marketers have their work cut out for them in dealing with the lingering impact of the recession.  In Packaged Facts’ September 2010 consumer survey, among those who did not have pet insurance, 42% cited as the reason “don’t want additional bill” and 37% said they “don’t want to spend the money for it.”  With economic recovery slow at best, this reticence does not seem likely to change overnight.  Packaged Facts does not expect consumers to throw open their pocketbooks any time soon, but rather to continue to practice moderation.  Thus value will remain a major marketing theme in 2011 and 2012 as pet insurance companies strive to communicate the benefits of their products and keep the pricing options as attractive as possible.  Expect to see more zero- (and other very low) deductible plans, following in the footsteps of Trupanion and, more recently, VPI (via its new Feline Select Plan).

That said, the level of competitive activity is at an all-time high, and with so many irons in the fire I’m not ruling out a “big boom” in the North American pet insurance market.  Such growth will, however, depend on the ability of marketers to move from what appears to be a stage of market cannibalization (and perhaps some retrenchment, even) to one of more uniform growth via an expanded consumer base.  One possible catalyst to higher-level growth would be the entry into the market of another mega-retailer, such as PetSmart (via its Banfield units) or Walmart, the latter of which is reportedly planning a Canadian launch as a Western Financial white label (although neither company could confirm this).

One thing’s for sure, given the currently very low level of pet insurance penetration and very high level of competitive activity—about a half dozen companies have entered the field just since 2004, including PetFirst, Pets Best, Embrace, Fetch/Petplan USA, Trupanion, PurinaCare, and Healthy Paws—the North American pet insurance party is likely just getting started.

~David Lummis, Senior Pet Market Analyst, Packaged Facts

Pet Insurance in North America, 4th Edition

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.