Three Things to Know
The Indian pet health insurance market is still in its early stages of development. To gain a deeper understanding of dog owners’ perspectives on pet care and the potential for pet insurance, researchers conducted a survey.
The findings revealed that veterinary care costs pose a significant financial burden for many dog owners. Annual veterinary expenses varied, with 52% of owners spending between ₹1,000 and ₹3,000. Notably, 90% of owners acknowledged the financial burden of veterinary costs, and 74% reported experiencing financial stress due to these expenses.
Despite this, awareness of pet insurance remains low, with only 26% of surveyed dog owners having heard of it, primarily through word-of-mouth. While pet insurance adoption currently stands at a low 10%, a strong majority (88%) of owners expressed a willingness to pay for such coverage, suggesting a significant untapped market potential.
For Dog Welfare Practitioners:
In developing countries like India, while pet insurance awareness remains low, this research reveals a promising market. The ASPCA’s successful launch of its own branded pet insurance in the U.S., in partnership with a commercial insurer, offers a valuable model. This approach allows the organization to participate in market growth while simultaneously addressing a critical issue: preventing pet surrenders due to unexpected veterinary costs.
Large animal welfare organizations in developing countries should consider this model as a potential avenue for generating revenue and fulfilling their mission.
The Full Picture
Pet ownership necessitates comprehensive care, including regular veterinary checkups. Pet insurance provides crucial financial protection against unexpected medical expenses, enabling owners to prioritize their pet’s health without financial constraints. This, in turn, allows veterinarians to provide optimal care. Moreover, pet insurance alleviates the stress and guilt associated with unaffordable treatments, strengthening the human-animal bond.
The Indian pet care market is booming, yet pet insurance remains underutilized. Factors influencing purchase decisions include awareness, affordability, sense of responsibility, and risk perception. As veterinary costs rise, the demand is poised to increase. Veterinarians play a vital role in educating owners about the benefits, including improved emergency care and overall pet well-being.
Study Methods
This study, titled “A Study On Pet Health Insurance And Its Impact On Owners Spending For Veterinary Services With Reference To Mysuru City,” utilized a quantitative research approach to investigate factors influencing the intention of pet dog owners in Mysuru to purchase pet insurance. Data was collected through a survey that included the following:
- Owner details: Age, gender, educational qualification, occupation, and annual income.
- Pet details: Number of dogs owned, pet age, breed type and size, and duration of ownership.
- Pet care practices: Hours spent with the pet daily, type of food given, sleeping arrangements, and monthly expenses on pet care.
- Veterinary care: Amount spent on veterinary expenses in the last year, frequency of veterinary visits, and history of major illnesses.
- Pet insurance: Awareness of pet insurance, insurance status, reasons for not purchasing insurance, willingness to pay, and preferred monthly expenditure on pet insurance.
Study Results
The study surveyed 235 pet owners in Mysuru to investigate their awareness of and willingness to pay for pet insurance, while also examining their veterinary visit patterns and associated expenses. The survey found that 83% of respondents owned a single dog, with most dogs falling within the 4-6 year age range. Ownership duration was diverse, with 47% of owners having shared their lives with their pets for 1 to 3 years.
Dog owners reported spending an average of two hours daily with their pets. Feeding habits varied, with 51% providing home-cooked meals and 41% opting for commercial pet food. Sleeping arrangements were diverse, with 46% of pets sleeping outdoors and 16% enjoying the comfort of their owners’ bedrooms.
Veterinary Care
The study revealed a range of veterinary care utilization patterns. Twenty-three percent of owners had not visited a veterinarian in the past year, while 24% visited once, 25% twice, and 18% visited more than four times. Common health issues among dogs included diarrhea, skin infections, obesity, fractures, kidney diseases, respiratory infections, and distemper.
Annual veterinary expenses varied, with 52% spending between ₹1,000 and ₹3,000, while 21% reported no expenditure, often due to recent pet acquisition. The study highlighted significant concerns about the financial burden of pet care, with 90% of owners agreeing that veterinary costs are a significant issue, 74% citing financial stress from expenses, and 70% expressing worry about the financial risks associated with pet illnesses.
Attitude Towards Pet Insurance
Among the respondents, a significant 73% were unaware of pet insurance, while 26% had learned about it through family, friends, or veterinarians. Despite this, 90% had not insured their pets, primarily due to a lack of awareness. Some cited financial constraints or relied on veterinarian recommendations for adoption as alternative reasons. However, a strong majority (88%) expressed willingness to pay for pet insurance, with an average preferred premium ranging from ₹500 to ₹1000.
Risk perception among pet owners primarily centered around the fear of their pets becoming ill or dying, as well as the anticipation of future medical needs. These concerns significantly influenced their desire for pet insurance. A substantial 92% feared losing their pets, and 94% anticipated future medical needs.
The COVID-19 pandemic appears to have heightened the relevance of pet health insurance, with 70% of respondents acknowledging its necessity in managing unexpected expenses. Overall, 95% strongly believed in the importance of pet health insurance, recognizing its crucial role in mitigating financial risk, reducing unforeseen costs, and providing financial stability. This underscores the growing acceptance of pet insurance as a valuable tool for addressing both the emotional and financial challenges associated with pet ownership.
Conclusion
This study is the first to investigate pet owners’ knowledge of pet insurance, their willingness to pay for it, and how these factors relate to veterinary visits and costs in Mysore, India. Findings revealed that 74% of pet owners were unaware of pet insurance, despite 88% expressing a willingness to pay for it.
Future research should delve deeper into the attitudes, barriers, and motivators that influence pet insurance adoption among pet owners. Additionally, studies should analyze how pet health insurance impacts owner behavior and determine the significance of different plan features for developing effective marketing and commercial strategies.
Miscellaneous
Data From Study:
Owned Dogs > Cost of Ownership > Pet Health Insurance
Year of Publication:
2023
External Link:
S, P. G. N., H, V., V., & Kurthukoti, D. A. (2023). A study on pet health insurance and its impact on owners spending for veterinary services with reference to Mysuru City. Journal of Survey in Fisheries Sciences. https://doi.org/10.53555/sfs.v10i1.1486