Once thought of as something reserved for the likes of Paris Hilton and her chihuahua Tinkerbell, health insurance for pets is increasingly being seen as a serious investment.
A recent Synovate survey conducted in nine markets shows that 51% of UK pet owners currently own or would consider buying pet health insurance. Their sentiments are echoed by the Philippines (28%) and the US (22%), who come in second and third respectively.
The study was conducted among 6,109 respondents in the UK, the US, Russia, Czech Republic, Bulgaria, Thailand, Philippines, Taiwan and Hong Kong.
The UK and the US are the absolute leaders in pet ownership, according to the Synovate survey. Three-quarters (75%) of English respondents are pet owners, while two-thirds (69%) of American households count pets among the family.
Given these figures, it is not surprising that The Scotsman says there are more than 400 pet insurance policies available in the UK from providers as diverse as the Kennel Club and DIY store Homebase. "As pets become an increasingly important factor in people's lives, they are more likely to make a financial and emotional investment in their welfare," says Frank Furedi, professor of sociology at the University of Kent in the UK.
The explosion in pet health insurance products was also inevitable as advancements in pet care increasingly rival those used to treat humans. With growing availability of these treatments, however, has been the corresponding escalation in veterinary fees. "With the rising cost of pet care, owners are naturally looking towards the security that pet insurance can offer," says Barbara Heffernan, director of Synovate's corporate and financial unit in the UK. "In response to this, the market is now awash with more affordable policies."
Brain surgery, cancer treatment, canine dialysis, even teeth correction with braces, are now being offered by more and more veterinarians, says the American Pet Products Manufacturers Association (APPMA) which identified "medical advancements in pet care" as one of its top six industry trends for 2006.
According to an APPMA-commissioned survey, pet insurance was gaining in popularity with 3% of dogs and 1% of cats having pet insurance – their figures for 2002 show 2% and less than 1% respectively. The APPMA expect pet owners in the US to spend US$8.6 billion on veterinary care this year.
Findings from the Society for Human Resource Management's 2005 Benefits Survey show that 10% of HR professionals in US companies with more than 500 staff offer pet insurance as a voluntary benefit, while 5% overall offer the option, up from 2% in 2004.
"The boom in personal health and wellbeing was a trend bound to spread to the pet industry," observes Claire Braverman, head of Synovate's Financial Services practice in the Americas. "The growth in pet insurance is consistent with the general growth in spending we have seen on pets in the US over the past several years, and the development of unique pet products such as pet daycare, pet spas and local municipal pet parks. We don't expect to see a decrease in the development of these products anytime soon."
Furedi says there is a deeper, underlying reason for the rush to buy pet cover. "As people's lives become more fragmented and relationships with other people become more difficult, humans turn to pets. They offer an unconditional love in a way that other people don't."
In the Synovate survey, that love could prove to be the litmus test for human relationships. Eighty-five per cent of Russian pet owners categorically state that their partner "must accept my pet as an important part of my life" – the highest among all markets surveyed. That tough statement also resonates in the Czech Republic (73%), the US (73%) and the UK (71%).
Interestingly, a high percentage of pet ownership in a country does not necessarily correspond with a high involvement with pets – in the Philippines, acceptance of a pet as part of the relationship package is less important (29%).
Unimpressed respondents who don't own pets cite reasons ranging from "too high maintenance" to admitting they are "not a pet person". Nine out of 10 Bulgarian respondents who fall into this set heartily agree with the statement that "pets are poor substitutes for children", followed by their counterparts in Hong Kong (87%) and the Philippines (71%).
