The pet insurance market - Italy (2023)

1.2 The global market

The global pet insurance market is facing a period of strong growth, which is expected to reach a total value of $**.* billion by **** (***); an extremely positive figure compared to $*.** billion in ****.

Insurance is certainly useful to cover any costs of veterinary care, as well as to protect the pet's owners against any damage caused to third parties, in addition to the possibility of being able to rely on legal protection in the event of a court or out-of-court dispute. Most insurance programs are designed for dogs and cats, since they tend to be the type of pets most owned and require the most exorbitant expenses; however, there are also policies to cover birds, reptiles, and other types of pets.

Global Pet Insurance Market ****-****, billion US$ Assinews

Europe plays the role of major player, given its growth in demand in recent years; In fact, globally, Europe covers **.* percent of the entire market.

Regional analysis of the pet insurance market Forecast ****, % Exactitude Consultancy

Insuring pets through nasal fingerprinting: the Chinese idea

ping An Insurance's proposal to apply facial recognition technology to pets to provide appropriate insurance is certainly innovative. Initiative proposed during Pet Fair Asia, held in late August ****. The Chinese insurance ...

1.3 The local market

One of the aspects covered by insurance policies is the care of the animal's health. In ****, according to data from the latest expenditure monitoring report of the General Accounting Office of the state, Italians spent about *** million euros on this aspect, compared to *** million in ****. The increase compared to the pre-pandemic period is ** percent. The health of the animal, however, is not the only concern of pet owners, as pets can cause damage to property, people or other animals; the expenses for this kind of compensation can be very significant, even millions of euros in the most extreme cases.

"Precisely in order to protect oneself from risks, insurance exists, even for pets," stressed Anapa President Vincenzo Cirasola. "Veterinary care is becoming increasingly sophisticated but at the same time increasingly expensive, the cost of surgery can reach several thousand euros. Not to mention compensation for damages that a pet may cause to third parties. With a policy we are protected from the small-big mishaps that can happen in our home life."[***]

As has been expressed earlier, Pet Insurance is among the fastest growing branches in the policy industry; in Italy there are still no certain statistical surveys, for this reason an ...

1.4 Lockdown and pets

The dilgare of Covid-** has led to an increase in pet purchases. A survey vaulted by YouGov shows that as of ****, one in four Italians had begun to devote themselves to caring for a pet. According to data in the interview, the choice was strongly influenced by the consequences of lockdown for ** percent of respondents, with ** percent seeking the companionship of a pet to relieve loneliness and ** percent seeing spending more time at home as an opportunity to better manage the animal. **% sought a refuge from daily worries in caring for a pet, while **% did so to reduce anxiety.

Pet boom in Italian homes during the pandemic: reasons why Italy, ****-****,% Ansa

Most people were able to devote between two and four hours a day to caring for their pet, while **% of respondents say they committed more than seven hours a day. Individuals' choice pours mainly on dogs (***) and other animals, such as reptiles, birds and fish. At the time of gradual reopening of activities and return to normalcy, with consequent reduction of smart working, some people are reevaluating their decision: **% regret their choice of getting a pet and *% say they can no longer take care of it. Despite this, **% of ...

2.1 Demand characteristics

In ****, one-third of Italians will welcome a pet in their home. Compared to ****, a decrease of **.* percent (***).[***]

Pets in Italy Italy, ****, % Eurispes

The following graph provides an interesting overview regarding Italians' choice of pets. The figures clearly show that dogs are the most popular pet in Italy, accounting for ** percent of choices. This suggests a strong cultural affinity of Italians for dogs, which are often considered family members. Cats, with **.* percent of preferences, represent the second choice. Cats also enjoy considerable popularity and are widely adopted as pets in Italian homes. Their independent but affectionate nature may explain their continued popularity. Fish and birds, although they account for a significant percentage, are a less common choice among Italians. Fish account for *.* percent, while birds make up *.* percent of preferences. These pets may be more suitable for those who prefer animals reduced care or have limited space in their homes. Overall, the graph suggests that Italians love pets and that the choice between dogs and cats remains the main preference. However, it is important to note that there are also people who choose less traditional animals such as fish and birds, which reflects the diversity of personal preferences when it comes to ...

2.2 Factors influencing demand

Although the option to insure one's pets has existed for years, since **** there has been a significant increase in membership, leading most auto and home insurance companies to make extensions for pet policies. A prerequisite for applying for an insurance plan is that the pet is registered with the registry, has a microchip tattoo, health record and is regularly vaccinated. Any damage caused or suffered by the animal when used in activities proivite by law is not covered.

Liability

"Third-party liability" is one of the first reasons for owners to insure their animal; insurance, in this case, is concerned with reimbursing damages caused by the animal to third parties, whether people, other animals or property. "From the North to the South, the national chronicles record an escalation of canine aggression, led by even serious bites," points out Anmi (***). For this reason, despite the fact that several show that, in the case of dogs, there are no breeds that are more dangerous or aggressive than others, several companies apply different conditions for some specific breeds, such as Pitbull, Rottweiler and Dogo Argentino, sometimes deciding not to insure the animal. Another limitation that may be imposed by insurance companies is the age ...

2.3 Geographical distribution of demand

Geographically, the center obtains the primacy of demand for one or more pets with **.* percent; followed by the Northwest (***).

3.1 Market structure and size

The analysis of the size of the insurance market is carried out based on data belonging to the category related to the activities of insurance agents and brokers (***). Specifically, three different magnitudes are considered:

number of active enterprises number of employees legal form of active enterprises

Number of active enterprises

During the time period taken into analysis (***), there is no significant change in the number of operating enterprises, remaining basically stable. From **** to ****, a growth of *.**% was attested. Stability in the number of firms operating in the insurance agency sector may mean that we are facing a mature or well-established market. However, it is important to constantly monitor industry trends and customer needs to remain competitive and adapt to any changes. Competition and innovation remain critical to long-term success in the insurance industry.

Number of companies active in the insurance industry Italy, ****-****, thousands Istat

Number of employed people

The data for the number of employed people also tends to remain stable; a growth of * percent was recorded in the last year. In general, stability in the number of people employed in the insurance industry is not necessarily a negative symptom. It may indicate that the industry is able to maintain ...

3.2 The value chain

In the pet insurance landscape, there are two main macro-areas:

insurance dealing with liability and third-party damage: covering damage caused by the animal to people, property or other animals; some insurances also include legal protection in case of damage done or suffered by the dog; insurance covering medical-veterinary expenses: covering medical-veterinary expenses in case of illness or accident.

Limitations on liability

There are several limitations imposed by insurance companies; specifically these include:

exclusion of certain dog breeds: since ****, the classification into dangerous breeds has been superseded and the obligation to take out a policy on specific liability has lapsed; in fact, however, some insurance companies still use this wording to establish deductibles or deny coverage. Despite the current legal provisions, taking out dog insurance remains mandatory in the event of reports of high risk of aggression of the specimen by the veterinarian; deductibles: the deductible represents the amount that will be deducted by the Insurance company when settling the claim for the damage that the animal will have caused to third parties; overdraft: very similar to the deductible, with the difference that it is not a fixed value but a percentage expression. The policy that has a lower deductible and/or ...

3.3 Distribution channels

The passage of product distribution through agents and brokers is a traditional practice in the insurance industry. These brokers play a key role in the insurance market by connecting insurance companies to customers' needs. The following are some additional considerations:

the role of agents and brokers: insurance agents are often affiliated with a specific insurance company, where they are responsible for selling that company's products. They play an advisory and customer service role, helping them understand their needs and showing them the most suitable policies. Insurance brokers, on the other hand, are generally independent and have access to a wide range of insurance companies. They provide objective advice and help customers compare different options to find the policy best suited to their needs. decliningtrend in the direct insurance share: there has been a decline in the direct insurance share over the years, suggesting that more and more people are relying on agents and brokers rather than seeking policies directly from insurance companies; this is driven by both the wide range of choice and the increasing complexity of policies. growth of thebanking and postal network: in the recent period, premiums brokered by the banking and postal network are in a growth phase. ...

3.4 Main actors

The following is an analysis of the most important insurance companies that offer pet policies in their offerings.

UnipolSai

UnipolSai Assicurazioni S.p.A. is the insurance company of the Unipol Group, a leader in Italy in non-life insurance and, in particular, in motor liability. It operates through the largest agency network in Italy. UnipolSai Assicurazioni is controlled by Unipol Gruppo S.p.A. and, like the latter, is listed on the MTA market of the Italian Stock Exchange. In ****, **.* million customers, *,*** insurance agencies and *,*** sub-agencies are registered

HD Assurances

Established in ****, the HD Assurances group focuses on creating necessary and innovative animal health products; the insurance company's strengths lie in its sales teams and customer service, specializing in the direct distribution of complementary health contracts for humans and animals.

**hAssistance

Present in *** outlets throughout Italy, they have a team specializing in insurance for motorcycles and scooters, bicycles, scooters, urban mobility vehicles and boats. Of course they also deal with pet policies dogs and cats.

Italian Post Office

The history of the Italian Post Office began *** years ago. Today it has a network of **,*** post offices, ***,*** employees, *** billion euros in Total Financial Assets and ** million customers. Poste Italiane is an ...

4.1 Type of offer and prices

Taking out insurance is required by law only in derminate specific situations: when dogs are considered to be at high risk of aggression (***):

UnipolSai C@NE&G@TTO

The policy offered by the UnipolSai group is for dogs and cats with microchips or identification tattoos only; it offers coverage for care, third-party damage, legal protection, veterinary expenses for surgery, rehabilitation and funeral expenses.

SCOPE: **% AGE OF SUBSCRIPTION: * months - ** years COSTS: €**-**/month, €***-***/year (***) MAXIMUM AMOUNT: €*,***

ConTe - CaneGatto

One of the best insurance offers is the one offered by the Italian insurance company ConTe. There are three options offered by Con-Te Cane Gatto for dog health insurance: Silver, Gold and Platinum.

SILVER: basic option; the cost is €*.**/month and includes coverage for veterinary expenses in case of injury or illness. The maximum is €*,*** with **% deductible and €*** overdraft (***); in case of no surgery, the maximum is €*** with **% deductible and €** overdraft. GOLD: cost €**.**/month, provides greater coverages than Silver. Specifically, search expenses in case of loss, funeral expenses, drug delivery and **/* assistance are added. PLATINUM: Cost of €**.**/month, provides reimbursement of expenses for visits and examinations related to infirmity or illness and legal protection.

ConTe allows you to insure dogs of ...

4.2 Features and costs

Choosing the best insurance policy takes into consideration several variables, one of them being the convenience of one rate over another; the following are some examples:[***]

The cost of dog insurance

Comparing the main features of the policies on the market, the costs of an insurance that covers only third-party liability start at about *€/month, while, with the addition of veterinary coverage it reaches **€/month. Remember that when choosing the most affordable insurance, the different elements (***) mentioned above should be taken into account.

The cost of cat insurance

Cat owners can also consider taking out a dedicated insurance policy. At the level of offerings, cat insurance offers the same coverages as dog insurance, such as reimbursement of veterinary expenses, liability damage coverage, or financial help in case of the loss of a feline. The cost of the policy varies depending on the cat's age, the coverages included in the policy, and the feline's breed. On average, a cat's insurance costs around ***-***€/year.

Insurance compared with veterinary expenses

According to a survey conducted by Altroconsumo, in **** the average annual expenditure of Italians for the care of their dog fluctuates around * ***€ and * ***€ for a cat. Included in this value are all the ...

4.3 New demand trends: mutual assistance

The Assigeco insurance company is offering a new insurance project for the protection of pets. The veterinary care mutual that bears the name "Protect Me Forever" and is on sale online at assaperlo.com is an innovative protection solution designed to provide many useful services for both pet and owner.

The product, which dogs and cats up to ** years of age and rabbits up to * can be enrolled in for the first time, offers several services:

Veterinary protection

veterinary expenses for hospitalization palliative care compassionate posting and funeral expenses emergency transportation assistance

Civil liability

liability for damage to third parties (***) third-party property damage liability (***) legal assistance

Assistance guarantees

search expenses in case of loss adoption in case of early death or severe disability of the owner in case of hospitalization of the owner, search for facilities to accommodate the pet car interior sanitation expenses

[***]

5.1 The regulation

At the regulatory level, there is no law that makes it compulsory to take out insurance for one's pets; the legislation provides for a compulsory policy only if the pet is included in the register of animals (***) declared to be at high risk of aggression, compiled and updated by the Veterinary Services of the Local Health Authorities.[***]

Italian law also defines what the owner's responsibilities are towards his pet and the actions performed by it; the Court of Cassation has clarified on several occasions the scope of the application of Article *** of the Criminal Code, stating that the responsibility lies not only with the owner but also with the person who looks after or supervises the animal. Responsibility for possession is to be considered as material and de facto possession; any reference to ownership of the animal, on the other hand, is irrelevant. In judgments No. **** of **/**/**** and No. **/**/****, the Supreme Court stated, "the holder of a dog assumes a position of guarantee with the consequent obligation to control and guard the animal, taking every precaution to avoid and prevent possible aggression to third parties, regardless of the formal ownership of the animal." If these damages result from aggression causing bodily ...

5.2 Pet bonus

In one of the many amendments proposed in the Budget Law of ****, an annual allowance of approximately €*** was to be established for each pet (***) living in the household and registered in the relevant registry, providing for activation for all beneficiaries with an Isee under €**,***. The proposal, however, was not approved and therefore is not active today.

Currently, one can claim the deduction provided by the pet bonus ****, without filling out some online application or by hand; in fact, the procedure is extremely simplified, as it provides for the inclusion of veterinary expenses in the tax return, communicating to the Inland Revenue Agency all outgoings incurred for the care of the pet (***). Copies of payments, which must be:

traceable: made through bank or postal transfers, credit, debit and prepaid cards, bank and bank drafts verified: through tax invoices indicating the tax identification number of the purchaser and the type, quantity and description of what was purchased

The maximum reimbursable amount, for expenses of €*** and up, is €**.

Requirements

to be a pet owner (***) for pets prove that you have incurred expenses related to its care and assistance have an income of less than **,*** euros (***)

[***]

6.1 Segmentation

Italian companies

Foreign companies

• UnipolSai Assicurazioni
• Assicurazioni Generali
• HD Assurances (JAB Holding)
• Poste Italiane
• ConTe - Gruppo Admiral