There’s no denying that Australia is a pet-loving country. Australia has one of the highest pet ownership rates in the world with approximately 61% of households owning a pet, which is about 29 million pets1.
Pet owners will know that taking care of pets has a lot of costs, particularly with veterinary care. While pet insurance isn’t very common amongst pet owners, there’s a good chance that it’ll become more widespread in the future. Here’s what we know about the pet insurance industry in Australia and the trends that experts anticipate seeing in the next several years.
The Importance of Pet Insurance
The topic of pet insurance is becoming more relevant and important to Australian pet owners because of rising veterinary care costs. The rise of veterinary chains and lack of regulations on setting prices are just a few factors that cause vet bills to be so expensive.
While pet insurance may have sounded like a luxury in the past, it may actually be necessary, cost-saving, and lifesaving for many pets in Australia. A 2019 comparison of costs will show how much you could save with pet insurance.
The average annual cost of pet insurance for 5-year-old dogs was around $1,000. The following are the average costs of treatments for some common accidents and illnesses:
Based on these numbers, pet owners could potentially save on thousands of dollars and avoid heartbreaking scenarios and making tough decisions due to expensive vet bills.
How Many People Have Pet Insurance in Australia?
The most recent data shows that only about 7% of pets in Australia have pet insurance. The cost of pet insurance in Australia ranges between $20-60 a month.
There isn’t too much data available on the number of pet owners with pet insurance by states and territories. However, information gathered by Roy Morgan on the profile of pet insurance holders is available.
The largest group of people with pet insurance are those employed, and they make up 77.4% of the people who have pet insurance. Of all the people who have pet insurance, 59.8% are women. Here’s a more detailed breakdown of percentages of the types of consumers that have pet insurance.
Popular Pet Insurances Providers in Australia
As of 2022, there are approximately 22 major pet insurance providers in Australia. Some of the more prominent companies are Medibank, Woolworths, and Coles.
Medibank is popular because pet owners can find some of the most budget-friendly plans through this company. Pet owners also prefer Woolworths’ comprehensive coverage because it has some of the best annual limits for the price. Coles’ premium plans are popular because pet owners can enroll in plans with 100% reimbursement rates.
Pet owners that are more interested in receiving coverage for routine care often opt for Pet Insurance Australia’s plans. The PIA Major Medical Cover plan automatically includes routine care in its coverage, while the majority of plans from competitors don’t.
Trends About Pet Insurance in Australia
While pet insurance in Australia is still a bit of a niche market, experts in the field anticipate it becoming more common. The humanization of pets and expensive vet care costs are just two of many other factors that can push more pet owners to consider pet insurance.
The need for veterinary care services is growing, yet prices are also growing. Also, only a small percentage of Australian pet owners have pet insurance. These trends and consumer attitudes are very similar to the UK, and in the UK, about 30% of pet owners have pet insurance.
So, the current natural progression is to see an increase and growth in the pet insurance industry over the next several years. According to IBISWorld, the veterinary services industry in Australia is only projected to grow over the next 5 years as pet ownership rates have risen during the COVID-19 pandemic.
Pet insurance can also help veterinarians receive consistent payment for running their practices. Rising costs in veterinary care can discourage and prevent pet owners from giving the treatments that their pets need. So, paying monthly pet insurance premiums can be cheaper for pet owners than paying vet bills upfront.
Frequently Asked Questions
Your pet’s breed can impact pet insurance premiums. Dog breeds with the most expensive premiums are typically Tosa Inus, Swiss Mountain Dogs, American Bulldogs, French Bulldogs, and Australian Bulldog Miniatures.
Cat breeds with expensive premiums tend to be British Shorthairs, Manxes, Sphynxes, Scottish Folds, and Persians.
What does pet insurance cover in Australia?
For the most part, pet insurance will cover unspecified accidents and illnesses. So, they will cover costs for diagnostic testing, surgeries, and hospitalizations.
Reimbursements for routine care aren’t common, but you can usually find plans with add-on options that will expand your coverage to wellness and preventative care. Other add-on options that some pet insurance companies offer include coverage for death from illness or injury, alternative therapies, and prescription food.
Keep in mind that not all pet insurance companies offer the same add-ons. So, pet owners must research and seek clear answers to the coverage that each company’s plans provide.
Can pets get insurance after receiving a diagnosis?
You can still enroll pets for insurance after they receive a diagnosis, but they won’t receive coverage for any bills related to the diagnosis. This is because insurance companies won’t give reimbursements for pre-existing conditions.
Pet insurance companies can determine if a pet has a pre-existing condition through their underwriting process. During this process, they’ll look through your pet’s medical history and vet exams to locate any diagnoses or chronic illnesses that your pet already has.
Final Thoughts
Only a small percentage of pet owners have pet insurance, and with veterinary costs becoming more expensive, both pet owners and veterinarians may benefit from pet insurance plans. Insurance can help pet owners budget and make savings, and veterinarians can ensure that they get paid.
Overall, experts in the Australian pet industry market see a promising future for pet insurance. There’s much room for growth, and many anticipate that Australia’s trends will follow in the footsteps of pet insurance trends in the UK.
See Also:Â
- What Does Pet Insurance Not Cover? 13 Exclusions (With Examples)
- Does Pet Insurance Cover Heartworm Treatment? Standard Policies & FAQ
Featured Image Credit: Drazen Zigic, Shutterstock
