Importance and expansion of pet insurance in the world
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Pet insurance is a policy similar to people’s health insurance but covers the needs of animals.
Nowadays, the contracting of this type of coverage has spread throughout the world, with dogs and cats being the most insured. Thus, Sweden is the country with the highest number of insured pets, covering 80 percent of pets, while in the United Kingdom the percentage is 30 percent and in Spain the penetration is below 5 percent.
According to data from Market Insights Reports, the size of the global pet insurance market is projected to reach $11.61 billion by 2027, up from $4.785 billion in 2020, at an annual growth rate of 13.5% during that period.
But these types of policies are not as recent as we might think. The first animal insurance came about in 1890, in Sweden, when the first policy was signed to insure a horse. However, it was not until two years later when this type of insurance reached the northern part of the American continent, thus, Lassie, the female collie that starred in the successful movie, was the first pet to be insured in the United States.
Pets represent a decision variable when choosing to invest in a house, in a car, in travel, in their own care or simply in leisure activities.
Types of coverage
Depending on the insurer or the financial institution providing the service, the policies granted cover all types of risks, ranging from vaccinations and anti-parasites, indemnity for theft, removal of the corpse if the animal dies, esthetic service, stay service due to travel or illness of the owner, and of course, civil liability, in case the animal causes any damage or accident.
It is estimated that the average indemnity paid by insurance companies in accidents of this last type amounts to 481 dollars, but it shoots up to more than 3,200 if there is an injured person or animal, in this way, the insurance allows to face any situation with peace of mind.
Insurance with veterinary coverage, depending on the country, costs around US$37 a month, according to Rastreator, while a single visit to a veterinarian can cost around US$43.
The outlook in Mexico
In the Latin American country, an estimated eight out of ten households have a pet; in fact, it is more common to have a dog or cat than to have children under the age of nine.
Six out of ten Mexicans take their pets to the veterinarian more than three times a year. In 2021 alone, 797 million dollars were paid in medical care for dogs.
A basic pet insurance in Mexico can be obtained from 10 and include coverage of up to 511 dollars for damages to third parties, as well as support of up to 180 in case of death of the canine or feline friend, either for burial or cremation expenses.
If you wish to take out insurance for your pet, BBVA can help you. Contact an advisor.
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