Is There A Good Future For Pet Insurance Business?
Almost everyone falls in love with a fluffy puppy romping and rolling around. Similarly, many are smitten by a snuggly kitten, and some love the excited chirping of their pet birds. According to a US pet-owners and demographic study of 2007, more than 50% of all Americans are pet-owners of either a dog or a cat; and nationwide, they are pet-owners of a combined population of 72 million dogs, 82 million cats and 4.5 million feathered friends! More than half the families in the US have a pet dog, cat, or bird. Unless you get one for free, buying a pet and maintaining its food and medical expenses, is a serious commitment because a cat or a dog lives at least for 10 years, and a bird, far longer. Then there is other pet-related expenditure like beds, playthings, vitamins, grooming, obedience training, cages, etc. all of which are making pet-owners more aware to the need for pet-insurance. According to latest trends, most pets are maintained by the more affluent families, who treat their pets as members of the family. Naturally, these pet-owners are now looking out for better or more sophisticated medical care for their pets, and willing to spend more money than did pet-owners in the past. As a result, veterinary service is presently one of the top growing sectors in the industry, and so is veterinary insurance or pet insurance business, which is closely linked to the health of a pet.
Since pets are increasingly being regarded as ?equal? members of the household, they are, as such, deserving of equal healthcare, and therefore targeted by pet insurance companies. A routine visit to a vet is similar to giving your car a periodical checkup or servicing, during which, your friendly mechanic may accidentally discover some critical part needing repair or replacement. Similarly, a routine visit to the vet may uncover the need for diagnostic testing like blood tests, X-rays and MRI scans, surgery and hospitalization, which could easily touch a bill of $1000 or more. Whereas an average pet-owner?s annual expenditure for routine vet visits is around $ 350 for a dog and $ 200 for a cat, the average additional surgical expenses for these pets are $574and $ 337 respectively. Most of these expenses can be recovered if you have taken insurance for your pet.
What is pet insurance business, and how does it benefit you? Pet insurance protects your pet from illnesses and accidents. It helps you pay the veterinary bills of your pet. Veterinary care is becoming more expensive nowadays due to increased access to sophisticated diagnostic tests, surgery and chemotherapy. Taking a pet insurance policy is your best bet for meeting not only routine medical expenses for your pet, but also meeting emergency medical expenses in case of unexpected illnesses and accidents. Generally, pet insurance also covers the benefit of basic diagnostic tests, treatment and surgery. Finally, insuring your pet would leave you with a clear conscience for having given the best protection to your pet dog, cat or bird.
Pet insurance business is based on widening umbrellas of healthcare, available under various plans. The most basic pet insurance covers accident-injuries and the associated veterinary procedures. It does not cover routine healthcare or illnesses of your pet; the second level of insurance does. The third level covers routine veterinary checkups neutering/spraying (making the animal sterile) and comprehensive annual physical examination, in addition to the second level benefits. Finally, the fourth level of pet insurance gives a total healthcare package including all three levels, plus sophisticated diagnostic testing and surgery.
When you signup your pet for insurance, you should be clear about the level of healthcare coverage you want your pet to have. Your basic pet insurance policy goes into effect normally 3 days after signing up. When your pet is sick, take a claim form along with you to the vet, and make sure he lists the diagnosis and signs the form. This is important for claiming reimbursement. After attaching the copies of paid receipts to the completely filled claim form, send it to the pet insurance company. You generally receive the check from the company within 2 or 3 weeks of posting your claim.
Since medical care of your pets is guaranteed business, the pet insurance industry is booming today. The average annual growth rate of premiums paid by pet owners has risen by 20% each successive year for the last 5 years, and it is expected to continue in 2010 also. At the end of 2009, pet insurance companies received a total of $300 million dollars in insurance premium payments, though there was no significant increase in fresh pet insurance during 2008 and 2009 due to the economic recession. There are ten pet insurance companies in the US marketing 14 brands. There is increased interest from equity investors in the pet insurance market.
In UK, market research reveals that almost 40% of adults live in a household along with at least one pet. While almost 30% of pet owners currently have a pet insurance policy, specialist pet insurance business providers dominate 45% of the market, while some leading retailers account for 25% of the market.
To conclude, the pet insurance market is showing trends of 20% growth rate in 2010, and pet-owners are the dominant force in the business by utilizing their insurance options. There are more exchanges of views and experiences between pet-owners in online social media, and increased awareness of pets among them. The future promises greater insurance and protection for pets.
Related directory categories
Dogs And Puppies
Reptiles And Amphibians
Dog And Cat Collars
Pet Care And Boarding
Fishing Equipment And Supplies
Dog Carriers And Cages
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