The pet insurance market - France (2024)

1.2 The global market

Worldwide market

The global pet insurance market is one with strong growth potential over the next decade. Numerous sources estimate average annual growth of between **.*%(***) between now and ****-****.

The Business Research Company estimates that the market will increase from $*.** billion in **** to $*.** billion in ****, representing growth of **. *%. According to the firm, it should continue to grow at an annual rate of **.*% between **** and ****. This gives us the following estimates:

Global pet insurance market size World, ****-****, in $ billions Source: ****

The market is driven by variables such as : the overall increase in the pet population, the growing awareness of pet owners who are "discovering" this service on the one hand, and increasingly accepting it on the other.the market is being driven by variables such as: an overall increase in the pet population, the growing awareness of pet owners who are "discovering" this service on the one hand, and increasingly willing to spend more to take better care of their pets on the other, rising veterinary costs, and finally the penetration of new geographical markets.

The main markets for pet insurance areNorth America, particularly the USA, and Europe. These are also the main markets, along with China, for pets.

Pet populations World, ...

1.3 The French market

Compared to its European neighbors, the French market still has strong growth potential over the next few years. Indeed, **% of French people own at least one cat or dog, yet only **% of them decide to insure them, according to an Ifop study. Although the humanization of pets is gaining ground in France, with an increasingly close connection between owners and their dogs or cats, it is surprising to note that the take-up rate for pet insurance remains relatively low.

Source: ****

This rate is to be understood on the **.* million dogs and cats counted in **** by the Fédération des Fabricants d'Aliments pour Chiens, Chats, Oiseaux et autres animaux familiers(***), a figure that rises to **.* million by ****.

Number of pets France, ****-****, in millions of animals Source: ****

According to an Ifop study, in **** the French will spend an average of €** a year on pet insurance. This makes it the *th largest item of expenditure for their pets, after food, veterinary costs and accessories/leisure.

Expenditure by the French on their pets France, ****, in euros Source: ****

Breakdown of French pet budget France, ****, in euros Source: ****

By ****, the French pet insurance market is expected to be worth between *** and *** million euros a year. ...

2.1 Animal population growth

The first variable that automatically impacts the number of pet insurance policies taken out is logically the number of pets owned by the French (***).

According to a **** FACCO study, **% of French households will have at least one pet. The pet population has been on the rise in France for several years, mainly driven by cats, except in ****, when there will be a slight decline of -*.*% in the number of cats. By contrast, the number of dogs will increase by *.*% between **** and ****.

What's more, the dog population in France has stabilized over the last ten years at around *.* million, but the cat craze has increased their population by **.*% between **** and ****. The NAC population is estimated at * million in France, including *.* million mammals and *.* million other animals such as snakes, spiders and reptiles. [***]

Evolution in the number of dogs and cats France, ****-****, in millions of pets Source: ****

This influences the development of the various markets linked to them : food, care and hygiene products, pet toys and so on.

The petfood market is expected to grow significantly in value terms between **** and ****, with sales increasing by *.* billion euros.

Total petfood sales France, **** - ****, in billions of euros Source: ****

2.2 The premiumization trend in pet products and services

Sales in the French petcare market are on the rise, driven by demand for increasingly high-quality products. Consumers are prepared to spend more on them. Indeed, more and more people are "humanizing" their pets, regarding them as family members in their own right, and therefore deserving of increasingly high-end care and products. In ****, **% of dog and cat owners would consider their pet a family member in its own right. This would be the case for **% of dog owners and **% of cat owners.

How do you view your dog or cat? France, ****, percentage of respondents Source: ****

This trend is also revealed by a NielsenIQ study published in early ****, which estimates that * out of * dog and cat owners regard their pet as a member of the family. This emotional factor is driving a "pleasure" trend, with increased sales in the treats segment, up **.*% for cats and *.*% for dogs between **** and ****. NielsenIQ illustrates this trend with the successful launch in **** of a special range of wet cat food by Nestlé Purina, "Gourmet Révélations", rated "best launch ****" in petfood. [***]

Another market revealing this petcare trend and the importance attached to pets is that of pet-dedicated funerals. Demand for individualized funerals for dogs and ...

2.3 The rise in veterinary care

Finally, another variable directly impacting demand for pet insurance is the price of veterinary care covered by insurance. You should expect to pay around €** for a simple consultation (***) has thus increased by **.*% between **** and ****.

Sales indices for veterinary activities (***) France, ****-*****, base *** (***) Source: ****

Such a rise in sales for veterinary activities thus indicates an increase in demand for veterinary care and/or a rise in the price of care, both of which could have a positive impact on the growth of the insurance market.

Pet owners' perception of the evolution of veterinary costs France, ****, % (***) Source: ****

The majority (***) of pet owners surveyed have noticed an increase in the cost of veterinary care.

The French underestimate veterinary costs:

Despite the fact that the French are noticing a rise in the price of veterinary fees, we note that pet owners don't always estimate veterinary costs correctly,

An Ifop/Fidanimo (***) study reveals that the French underestimate the veterinary costs they could face, which could explain why so few people insure their pets. On average, dogs visit the vet ** times in their lifetime, and cats ** . However, **% of owners anticipate fewer than ** veterinary visits during their pet's lifetime. Also, **% of those questioned think that * visits should be ...

2.4 Geographical distribution of demand

To determine the distribution of demand for pet insurance, we can look at the distribution of the pet population and of veterinary clinics and staff in France. We can thus observe that veterinary clinics and staff are relatively well distributed between French regions, and are slightly more present in the south of France. [***]

According to a **** Ifop survey, dog and cat owners are most numerous as a proportion of the population in Bourgogne-Franche-Comté and Centre-Val de Loire, with **% and **% respectively, well above the national average of **%. On the other hand, fewer people in Ile-de-France (***) and Corsica own pets.

3.1 Value chain

How pet insurance works:

There are three parties involved in the process of insuring a pet: the pet owner, the veterinarian, and the insurer chosen by the owner, who may be, as we saw earlier, a general insurer offering a "pet insurance" package, or a specialized insurer. The underwriting and insurance process works as follows:

Pet owners obtain information and sign an insurance contract. To insure a dog or cat, the animal must be neither too young - over * months old - nor too old - under ** years old. The owner must also be able to prove that the animal has up-to-date vaccinations, is properly chipped or tattooed, and is not suffering from a chronic, hereditary, congenital or recurrent disease. Once the insurance has been taken out, there is a delay before the insurance takes effect. When this is the case, during visits to the veterinarian, the owner gives the veterinarian a care sheet previously drawn up by the insurer. The veterinarian fills it out, detailing the treatments carried out and their cost. The owner then pays the veterinarian in full. The owner then sends the treatment form and invoice to the insurer. Reimbursement can take from a few days to ...

3.2 Major market players

The French market can be divided into several types of player:

traditional insurers, already well established in the insurance market, who have developed an "animal insurance" offering: Carrefour Banque et Assurancecarrefour Banque et Assurance, one of the main players in dog and cat health insurance, with ** years' experience and chosen by two million customers for its Accident and Equilibre formulas Groupama, one of France's leading insurers, also offers dog and cat insurance, with * formulas (***) Selfassurancewhich has a strong market position, notably with its Confort formula Generali, with its "mon animal generali" offer, which comes in * formulas to suit different needs Crédit Mutuel also offers a pet insurance package with just * levels of cover and an **% cover rate for expenses incurred. Macif also insures animals with its "Economique" and "Protectrice" offers Groupe Matmut with the Assur'*Pattes contract, specialized insurers, more established in the animal insurance market: SantéVet, the market leader, which offers dog, cat and NAC insurance and has won over consumers with products that are both comprehensive and less expensive Jim & Joe , SantéVet's "entry-level" brand, which offers a more affordable range than SantéVet. AssurVéto, which offers * major formulas, including its Accidents and Silver formulas, Assur ...

3.3 A niche market attracting new entrants and investors

With the pet insurance market still relatively undeveloped in France, many new players have set their sights on establishing themselves in the market, and even revolutionizing it with new offerings. They are thus succeeding in overturning a system that is no longer dominated solely by traditional insurers.

Startups operating exclusively in the pet insurance segment have seen strong growth, and claim to better understand and adapt to the expectations of pet owners, particularly in terms of transparency and personalization of contracts to suit the animal. These Assurtech players include Lovys (***).

The market is attracting the attention of investment funds, as evidenced by the funds raised in ****: *** million raised by SantéVet from the Columna Capital fund[***].

Funds raised in the animal Assurtech market France, ****-****, in millions of euros Source: ****

In addition, insurtech Kozoo has raised funds for ****, the amount of which has not been disclosed. [***]

4.1 Prices and packages

Pet insurance providers generally offer * types of cover:

anentry-level plan, with a low level of cover, which may be limited to accident expenses, and which has relatively low rates and reimbursement ceilings an intermediate plan, covering both accident and sickness expenses, with average rates and reimbursement ceilings a top-of-the-range plan, offering much more comprehensive coverage (***), with a high reimbursement rate.

Insurance plans for dogs France, ****, in % and in euros Source: ****

Insurance plans for cats France, ****, in % and in euros Source: ****

BFM TV has published a comparison of the cheapest formulas offered by several insurers:

Development of tiers payants:

SantéVet introduced a financing solution called PayVet in ****, equivalent to tiers payants for its French customers. This offer enables pet owners insured with SantéVet not to pay in advance and to have their bills paid directly by the broker.

The process involves verification of the policyholder's contributions, confirmation by the vet via a dedicated application, and direct payment to the clinic by SantéVet in less than ** hours. The gradual roll-out of PayVet has already equipped *,*** veterinary clinics out of *,*** in France, with a forecast of **,*** claims by the end of ****.

SantéVet group brands Bulle Bleue and Jim & Joe will ...

4.2 Product trends

Chris Blatchly, Director of Insurance Consulting at Cognizant, talks in **** about * variables to focus on in the coming years in the pet insurance sector:

the products themselves, to be made more personalized by, for example, observing the animal's lifestyle in order to offer more appropriate rates business models, to be reimagined in part by, for example, allowing people to share insurance costs partnerships with other players such as vets, breeders, etc. Crédit Mutuel Equity has thus invested in Incineris, joining the Véternity group and getting closer to its veterinary network. new value-added services to ensure the customer's enjoyment, beyond simple insurance. SantéVet, for example, makes it easy to book appointments via VétoLib and pay via PayVet for veterinary consultations. more flexible and rapid distribution of insurance products the use ofartificial intelligence and intelligent product automation safety and loss prevention services, to not only compensate but also help improve the animal's health.

Omer Bourret, from Lovys, adds:

the need for transparency and simple, easy-to-understand products, with fewer denials of coverage and no "hidden costs".

This is what Joao Cardoso, founder of the startup Lovys, presents as the company's raison d'être. Lovys claims to be "reinventing the company ...

5.1 Regulations

Pets are defined by law as "any animal kept by a person for their own enjoyment". All pets must be identified by a tattoo or microchip on their first visit to a vet. It is then registered in the national identification database for domestic carnivores in France.

French law does not require you to take out insurance to cover your pet's veterinary care. However, all pets must be regularly monitored by a veterinarian.

The only point mentioned in French pet insurance regulations concerns civil liability insurance covering potential damage caused by an animal. In this case, regulations differ for potentially dangerous dogs and other pets. Dogs likely to be dangerous are *st and *nd category dogs, which are attack dogs (***). Owners of *st and *nd category dogs are required to take out civil liability insurance, which may be included in their home insurance policy. In the case of other pets, there is no obligation to take out specific insurance. [***]

Since October *, ****, all pet owners must sign a "certificate of commitment and knowledge" in which they undertake to respect the animal's needs. The law instituting it was enacted on November **, ****, and aims to raise awareness and responsibility among pet owners. The certificate ...

6.1 Segmentation

• Dalma
• Acheel
• Santé Vet - Vetassur
• HD Assurances (JAB Holding)
• Assurances du Crédit Mutuel