Allianz has announced plans to enter the broker-led pet insurance market, as revealed by Serge Raffard, the company’s managing director for personal lines, during the British Insurance Brokers’ Association conference in May. The move signals expanding opportunities for insurers and their intermediary partners in a rapidly developing sector.
The growth of the pet insurance market is evident in the record £1.23bn paid out in claims across 2024, up 4% on 2023. Pay-outs have also more than doubled compared to ten years ago.
A record-breaking 4.6 million pet owners took out insurance in 2024, a 3% increase since 2023 and 33% higher than before the pandemic. The Association of British Insurers revealed these figures, highlighting the potential for intermediaries to grab a larger slice of the insurance sector.
Pet Insurance Market Growth
Markerstudy Distribution is keen to grow in the pet insurance sector, and other brokers are also making moves. For instance, Tedaisy acquired dog health and activity app Perro at the beginning of the year, aiming to combine the latest technology with insurance solutions.
Admiral and Policy Expert are also outlining bold plans in this space. To win business, brokers will have to distinguish themselves with unique offerings and services. It is clear that distributing and cross-selling pet insurance as an intermediary can be challenging.
Available markets and support from insurers will play a key role in determining the success of brokers in the pet insurance sector. The investment needed in online offerings to meet consumer expectations and the size of a broker’s book required to make this cost-effective are also important considerations.
Broker Opportunities and Challenges
Claims handling is another aspect that brokers need to consider. The entry of a market leader such as Allianz might stimulate more insurer interest, but it is unclear whether this will lead to increased competition or opportunities for brokers. As the pet insurance market continues to grow, brokers will need to adapt and innovate to remain competitive.
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The use of technology, such as AI, may also play a role in the future of pet insurance. However, for now, the focus is on how brokers can capitalize on the growing demand for pet insurance and provide unique services to their clients. With the right approach, brokers can tap into this growing market and increase their revenue.
In terms of available data, the pet insurance market has seen significant growth, with pay-outs increasing by 103% over the past decade. This growth is expected to continue, driven by increasing demand for pet insurance and advancements in technology.
Specialist staff are needed to handle claims and provide unique services to clients. Brokers may need to invest in training and hiring staff with expertise in pet insurance to remain competitive.
The size of a broker’s book is also an important consideration. However, smaller brokers may still be able to succeed by targeting niche markets or offering specialized services.
Claims Handling and Specialist Staff
Claims handling is a critical aspect of pet insurance. Brokers need to consider how to handle claims efficiently and effectively to provide good customer service.
Tedaisy, a broker that has made a name for itself in the animal health market, acquired dog health and activity app Perro at the beginning of the year.