It’s nothing new. Statistics have long confirmed a reality that anyone can see walking around their city: in Spain there are more pets than small children. many more. And in view of how they evolve the birth rate and the animal census of company, everything indicates that this gap will widen with the passage of time. It is therefore understandable that insurers are increasingly interested in a business that promises a notable growth in the coming years: policies for dogs and cats.
It makes sense if we take into account that in Spain there are not only millions of pets. It is increasingly easier to find families who dedicate hundreds of euros in your care.
The number: 20 million. It is not easy to specify how many pets are there in Spain. The figures handled by public organizations, veterinarians and the industry dedicated to their care do not completely coincide, but the general image they offer is the same: we Spaniards like the company of dogs, cats, parrots, ferrets, iguanas and other animals capable of adapting to living in our homes.
If we trust Anfaac, the association that represents feed manufacturers, in Spain there are more than 20 million of pets, especially dogs (6.9 million). The Spanish Association of Industry and Commerce of the Pet Sector (Aedpac) raises the number of pets to 28 million“present in 40% of the homes” in the country. Other sources point to some 30 millionwhile REIAC (Spanish Network for the Identification of Pet Animals) had registered three years ago 10.1 million of dogs and 968,000 cats.
A question of censuses… and euros. Censuses show us that hundreds of thousands of dogs, cats, ferrets, reptiles, birds live in Spanish homes… but that is only part of the ‘photo’ that interests the sector. Another (equally or even more important) is how much we spend on their care. That question was answered in March by EAE Business School, which published a report on ‘pet-money’ which concludes that pets generate a business of 5,770 million euros annually in Spain, drive an economy that grows at 8.3% and support 75,000 direct jobs in 12,300 companies.
These are compelling figures, but they are less surprising when you know another key provided by EAE: 49% of households Spaniards live with at least one pet, on whose care we spend on average between 500 and 1,000 euros per year. “In many cases these disbursements are comparable to spending on leisure or communications,” confirms the studywhich has detected a “cultural change” in the relationship with animals that leads a good part of Generation Z and millennials to affirm that they are an essential part of their lives.
“Hundreds of millions a year”. The report from AEA Business School also probed the animal-specific insurance business and discovered two things. First, it is in full expansion. Second, that sector data show that it already moves “several hundred million euros a year.” He is not the only one who paints a promising picture for insurers willing to exploit this business niche.
Fortune Business Insights calculate that the size of the global pet insurance market amounted to $25.91 billion last year and, if its forecasts are correct, this year it will rise to $30.74 billion. The organization estimates that the sector is growing at a compound annual rate of 18.63%, meaning that in less than a decade it would be in 120,560 millionwith a prominent weight from North America.
A business to exploit. Despite all of the above and the fact that veterinary coverage is basically private, the pet insurance business still has a lot of room to grow in Spain. At least that’s what it suggests a study from Guidewire, which points out that only half of pet owners have a specific policy for themselves. Specifically, after interviewing more than 4,000 people from Spain, France, Germany and the United Kingdom, the firm assures that, although 74% have a pet, only 49.6% have insurance to protect them. Other analyzes on the subject considerably reduce that percentage.
“This data draws attention when taking into account the regulations in force in Spain, so, since September 29, 2023, the Animal Welfare Law requires all owners of dogs, the most common pet, to take out civil liability insurance, regardless of their breed,” points out the entity. All in all, Spain is one of the countries “”with the greatest acceptance of pet insurance” and the penetration of this type of services has clearly grown in recent years.
Waking up appetite. In view of all the above, it is much better understood that large insurance companies and venture capital is entering in the digital veterinary insurance niche. Their hook: to make healthcare for dogs, cats and other pets easier on the wallet. One of the most recent tests comes from Petolo, linked to Getolo GmBH and the Zurich Group.
A few days ago the company announced his landing in Spain after acquiring a portfolio of more than 150,000 dogs and cats insured in Germany and France. “The Spanish market has 15.5 million dogs and cats, mostly without veterinary insurance,” says the firm, which offers several plans that allow you to recover part of the bills (between 60 and 100%, depending on the bread) for animal health care.
Is it a unique case? Not at all. As explained recently Five Days There are more examples of insurers and private equity firms that seem interested in the veterinary insurance business. Another recent case is that of Reale, which has decided to reinforce its presence in the pet policy sector. entering the shareholding from Canitas. The business has also attracted entrepreneurs such as those who have promoted the startup Barkibuwhich aims at the same objective: the vein that represents private healthcare for pets.
Images | Olga Kononenko (Unsplash) and Karsten Winegeart (Unsplash)
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