Chapter 2: Market Trends

• Introduction
  
  
  
  
  
  • Market Definition
    
    
  • Equine Insurance Excluded
    
    
  • Range of Coverage
    
    
  • Typical Restrictions
    
    
  • Other Services
    
    
  • Gross Written Premiums and Conversion Rates
  
  
  
  
• Market Size and Composition
  
  
  
  
  
  • North American Market Posts Double-Digit Growth
    
    
  • U.S. Pet Insurance Market Revenues
    
    
  • Table 2-1: North American Pet Insurance Market Revenues: United States, Canada, Total, 2003-2007 (in millions of U.S. dollars)
    
    
  • Canadian Pet Insurance Market Revenues
    
    
  • Figure 2-1: Share of North American Pet Insurance Market: United States vs. Canada, 2007 (percent)
    
    
  • Number of Policies in Force
    
    
  • Figure 2-2: North American Pet Insurance Market: Number of Pet Insurance Policies in Force, 2005-2007
    
    
  • Share of Policies by Animal Type
    
    
  • Figure 2-3: Share of U.S. Pet Insurance Market Revenues by Animal Type, 2007 (percent)
    
    
  • VPI Pinpoints Top 10 Pet Insurance Claims
  
  
  
  
• Market Outlook
  
  
  
  
  
  • North American Market at Pivotal Stage
    
    
  • Rising Veterinary Costs and Spending
    
    
  • Table 2-2: Caring for Pet’s Health: Veterinarian Visits, Expenses and Services Received, 2006 (number, percent and dollars)
    
    
  • Figure 2-4: Percentage of Dogs and Cats Given Medication and/or Drugs: 2000-2006 (percent)
    
    
  • Consumer Spending on Veterinary Services on the Ups
    
    
  • Table 2-3: Average Annual Consumer Expenditures on Veterinary Services, 1996-2006
    
    
  • Most Veterinarians Behind Pet Insurance
    
    
  • Aging Pet Population Keeps Focus on Pet Health
    
    
  • Figure 2-5: Distribution of $25.3 Billion U.S. Pet Healthcare Market, 2007 (percent)
    
    
  • Figure 2-6: Percentage Dogs, Cats and Horses Age 6 and Over, 1996 vs. 2006 (percent)
    
    
  • Pet Food Recall Puts Spotlight on Pet Health
    
    
  • Rising Rates of Pet Overweight, Obesity
    
    
  • Pet Humanization and Pampering
    
    
  • Table 2-4: Mean Number of Veterinary Visits by Human-Animal Bond Among Dog and Cat Households, 2006
    
    
  • Table 2-5: Mean Veterinary Expenditures by Human-Animal Bond Among Dog and Cat Households, 2006
    
    
  • Pet Population Trends Mostly Favorable
    
    
  • Table 2-6: Number of U.S. Households That Own a Pet: 1990-2006 (in millions)
    
    
  • At Least 39 Million Pet Households “Prime Prospects” for Pet Insurance
    
    
  • Table 2-7: Dog and Cat Owners by Level of Household Income, 2007 (percent, number of households and index)
    
    
  • Internet Popularity Among Pet Owners a Big Plus
    
    
  • Figure 2-7: Percentage Rates for Use/Influence of Internet: Overall Households vs. Dog- or Cat-Owning Households, 2007 (percent)
    
    
  • Media Perceptions Still a Mixed Bag
  
  
  
  
• Looking Ahead
  
  
  
  
  
  • More Competition and Consumer Awareness
    
    
  • Wal-Mart?
    
    
  • Effects of 2008 Recession
    
    
  • The Boomer Question
    
    
  • Figure 2-8: Projected Percentage Population Growth by Age Group, 2005-2015
    
    
  • Table 2-8: Pet Ownership Indices: By Adult Age Bracket, 2006 (indices of U.S. households)
    
    
  • Double-Digit Revenue Gains Expected to Continue
    
    
  • Table 2-9: Projected North American Pet Insurance Market Revenues: United States, Canada, Total, 2007-2012 (in millions of U.S. dollars)

Chapter 3: Competitive Trends

• Overview
  
  
  
  
  
  • Top North American Marketers
    
    
  • Table 3-1: North American Marketers of Pet Insurance, 2007
    
    
  • Figure 3-1: Estimated Share of North American Pet Insurance Market by Company, 2005-2007 (percent)
    
    
  • Figure 3-2: Estimated Share of U.S. Pet Insurance Market by Company, 2005-2007 (percent)
    
    
  • Figure 3-3: Estimated Share of Canadian Pet Insurance Market by Company, 2005 vs. 2007 (percent)
    
    
  • The New Competitive Landscape
    
    
  • Purina Set to Enter U.S. Market
    
    
  • The Underwriting Advantage
    
    
  • Company Snapshot: Trupanion/Vetinsurance
    
    
  • Seasoned Executives Form New Companies, Summit
    
    
  • Company Snapshot: Pets Best
    
    
  • The U.K. Influx
    
    
  • Company Snapshot: Fetch, Inc. (Petplan U.S.)
    
    
  • Simplification and Customization
    
    
  • Company Snapshot: Embrace Pet Insurance
    
    
  • High-Tech Backfilling—and “Forefilling”
    
    
  • Company Snapshot: EnsurApet
    
    
  • Outside Competition in the Form of Managed Care
    
    
  • Pet Assure
    
    
  • CareCredit
    
    
  • Pethealth
  
  
  
  
• Competitor Profile: Hartville Group, Inc.
  
  
  
  
  
  • Company Overview
    
    
  • Types of Plans
    
    
  • Management Shakeup Precedes Growth
    
    
  • Company Signs Deal with ASPCA
    
    
  • Hartville Doubles Premiums in 2007
    
    
  • Figure 3-4: Hartville Group Gross Written Pet Insurance Premiums, 2001-2007 (in millions of dollars)
    
    
  • Number of Active Policies up 101%
    
    
  • Figure 3-5: Hartville Group Number of Active Pet Insurance Policies, 2001-2007
    
    
  • Consumer Marketing
    
    
  • Looking Ahead
  
  
  
  
• Competitor Profile: PetFirst Healthcare LLC
  
  
  
  
  
  • Company Overview
    
    
  • Simple Pricing, Up Front
    
    
  • Figure 3-6: Monthly Premiums: PetFirst Comprehensive Pet Insurance Plans, 2007 (in dollars)
    
    
  • Online Policy Management
    
    
  • Retail Distribution Through Kroger, Others
    
    
  • Value Appeal
    
    
  • Financial Services as Store Loyalty Builder
    
    
  • Kroger Company Snapshot
    
    
  • Other Retail Partners
    
    
  • PetFirst Expands Company Benefits Business
    
    
  • Home Again
    
    
  • Looking Ahead
  
  
  
  
• Competitor Profile: Pethealth, Inc.
  
  
  
  
  
  • Company Overview
    
    
  • 24PetWatch Pet Registry Services
    
    
  • PetPoint Shelter Management Software
    
    
  • PawsConnect.com Social Networking Website
    
    
  • Steady Revenue Growth
    
    
  • Figure 3-7: Pethealth Revenues, 2001-2007 (in millions of Canadian dollars)
    
    
  • Pet Insurance Performance
    
    
  • Figure 3-8: Pethealth Pet Insurance Gross Written Premiums, 2001-2007 (in millions of U.S. dollars)
    
    
  • Number of Policies
    
    
  • Figure 3-9: Number of Pethealth Pet Insurance Policies in Force, 2001-2007
    
    
  • United States v. Canada
    
    
  • Figure 3-10: Share of Pethealth Pet Insurance Gross Written Premiums: U.S. vs. Canada, 2005-2007 (percent)
    
    
  • Pet Insurance Programs and Marketing
    
    
  • Distribution Channels
    
    
  • Underwriting Participation
    
    
  • Company Adds Maintenance Coverage
    
    
  • Company Extends Petco Pact
    
    
  • Company Teams up with H-E-B
    
    
  • Company Expanding Buckslip Technology
    
    
  • EVE Online Claims Processing
    
    
  • Company Moves into Managed Care
    
    
  • Looking Ahead
  
  
  
  
• Competitor Profile: PetPartners, Inc.
  
  
  
  
  
  • Company Background
    
    
  • Company Strategy
    
    
  • Policy Types
    
    
  • Looking Ahead
  
  
  
  
• Competitor Profile: SecuriCan General Insurance Company
  
  
  
  
  
  • Company Background
    
    
  • HED (Hayhurst Elias Dudek, Inc.)
    
    
  • Premiums, Policies Rising at Double-Digit Rates
    
    
  • Figure 3-11: SecuriCan Pet Insurance Gross Written Premiums, 2003-2007 (in millions of U.S. dollars)
    
    
  • Figure 3-12: SecuriCan Pet Insurance Number of Active Policies, 2005-2007
    
    
  • Petplan: SecuriCan’s Flagship Brand
    
    
  • Marketing Venues
    
    
  • SecuriCan Launches PurinaCare Brand
    
    
  • PC Financial Brand Targets Loblaw Supermarket Crowd
    
    
  • CAA Brand Reserved for Auto Club Members
    
    
  • Strategic Alliances
    
    
  • Looking Ahead
  
  
  
  
• Competitor Profile: Veterinary Pet Insurance Co.
  
  
  
  
  
  • Company Overview
    
    
  • Recent Company Milestones
    
    
  • Policy Types
    
    
  • Emphasizing WellCare
    
    
  • Commitment to Benefits Schedule
    
    
  • Belief in Indemnity Insurance
    
    
  • Adherence to Regulation
    
    
  • 2007 Revenues of $150 Million
    
    
  • Table 3-2: Veterinary Pet Insurance Gross Written Premiums, 1998-2007 (in millions of dollars)
    
    
  • Figure 3-13: Share of Veterinary Pet Insurance Gross Written Premiums by Policy/Rider Type, 2004-2007 (percent)
    
    
  • Consumer Advertising Targets Niche Markets
    
    
  • Table 3-3: National Consumer Advertising Expenditures by Veterinary Pet Insurance, 2000-2006 (in thousands)
    
    
  • “Family Redefined” Campaign Expanded
    
    
  • Public Relations Mix “Fun Facts” with Valuable Pet Health Tips
    
    
  • Web-Based Marketing and Support
    
    
  • Working with Iams
    
    
  • Veterinary Channel Remains VPI Stronghold
    
    
  • Industry Leader in Voluntary Benefits Arena
    
    
  • Looking Ahead

Chapter 4: Consumer Trends

• Pet Ownership Overview
  
  
  
  
  
  • Methodology and Data Sources
    
    
  • 52% of Households Keep Pets
    
    
  • Figure 4-1: Household Ownership Rates for Selected Pet-Owning Classifications, 2007 (percent of U.S. households)
    
    
  • Table 4-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications, 2005 vs. 2007 (percent of U.S. households)
    
    
  • Pet Owner Demographics
    
    
  • Dog and Cat Owner Demographics
    
    
  • Table 4-2: Demographics for Pet Ownership, 2007 (percent, number and index of U.S. pet-owning households)
    
    
  • Table 4-3: Demographics for Dog or Cat Ownership, 2007 (percent, number of households, and index)
    
    
  • Table 4-4: Demographics for Dog Ownership, 2007 (percent, number of households, and index)
    
    
  • Table 4-5: Demographics for Keeping One Pet Dog, 2007 (percent, number of households, and index)
    
    
  • Table 4-6: Demographics for Keeping Two or More Pet Dogs, 2007 (percent, number of households, and index)
    
    
  • Table 4-7: Demographics for Cat Ownership, 2007 (percent, number of households, and index)
    
    
  • Table 4-8: Demographics for Keeping One Pet Cat, 2007 (percent, number of households, and index)
    
    
  • Table 4-9: Demographics for Keeping Two or More Pet Cats, 2007 (percent, number of households, and index)
    
    
  • Table 4-10: Demographics for Keeping Pet Dogs and Cats, 2007 (percent, number of households, and index)
  
  
  
  
• Pet Owners and Insurance
  
  
  
  
  
  • APPMA Consumer Survey Charts Pet Insurance Usage
    
    
  • The Dog Insurance Purchaser
    
    
  • The Cat Insurance Purchaser
    
    
  • Pet Owners Out Front for Many Types of Insurance
    
    
  • Pet Owners on the Web
    
    
  • Table 4-11: Demographic Characteristics for Purchasing of Dog Insurance, 2007 (percent of U.S. adults)
    
    
  • Table 4-12: Top Demographic Characteristics Favoring Purchasing of Cat Insurance, 2007 (percent of U.S. adults)
    
    
  • Table 4-13a: Penetration Rates for Selected Types of Insurance: Overall Households vs. Dog- or Cat-Owning Households, 2007 (percent)
    
    
  • Table 4-13b: Indices for Selected Types of Insurance: Overall Households vs. Dog- or Cat-Owning Households, 2007
    
    
  • Table 4-14a: Percentage Rates for Use/Influence of Internet: Overall Households vs. Dog- or Cat-Owning Households, 2007
    
    
  • Table 4-14b: Indices for Use/Influence of Internet: Overall Households vs. Dog- or Cat-Owning Households, 2007

Appendix: North American Pet Insurance Providers