With the recent boom in pet technology, the pet insurance market represents an exciting opportunity for insurers.
Cloud Insurance, an all-in-one InsurTech solution for agents, insurance companies, brokers and MGAs, is on a mission to help entrepreneurs launch their digital pet insurance offering quickly and smoothly.
According to Cloud Insurance, pet technology is booming. In fact, a recent market forecast report predicted that the global pet tech market will reach $31.9bn by 2027 with a CAGR of 24.7% from 2020 to 2027.
As pet gadgets, apps, and new technology transform how pet owners care for their pets, this brings up many interesting questions for insurers such as how this will impact pet insurance, as well as how insurers can leverage pet tech data and tap into the market.
Cloud Insurance outlined the key trends in the pet tech space that insurers should be aware of.
Firstly, similarly to in the health tech and health insurance markets, wearables for pets are on the rise. Like humans, pet obesity is increasing, and this leads pets to be more susceptible to health issues such as diabetes and heart disease.
Dog tech like WonderWoof and pet tech such as Bluetooth-enabled smart leashes and GPS pet trackers, enable pet insurers to have access to pet activity data. Some data that insurers can access include pet location, movement, number of daily steps, and training progress.
Cloud Insurance said this can help insurers perform more effective and accurate risk management, and hence make pet insurance more affordable and expand their customer reach.
Digital daycare tools are also becoming available. Through pet technology like a smart ball with a pet camera, people can use a mobile app to play with their pets from wherever they are. This allows pet owners to remotely give their dogs a treat or entice their feline friends in a laser-chasing game through digital daycare services for pets.
Similar to behavioural analytics, insurers can leverage this to provide insights to improve products and services.
Additionally, Cloud Insurance noted that companies are coming up with new technology that can detect health markets beyond activity levels, such as a smart health monitor that detects feline health issues through cat litter.
Another trend Cloud Insurance highlighted, is the rise of pet genetics. This allows pet oqners to have more insight into how to care for their pets, since many diseases can be hereditary.
This will also help insurers determine customised coverage for specific breeds. As a result, insurers make their customers happier by giving them the peace of mind that their pets health care needs are covered.
Finally, online pet services are on the up. From appointment scheduling software to regularly groom your pets to booking vet check-ups, online pet services are getting more diverse by the day, Cloud Insurance said.
All of the above trends in pet technology can help insurers conduct more effective risk management.
Cloud Insurance said that, without a doubt, pet tech opens up a whole new world of exciting business growth possibilities for insurance. Through strategic pet tech partnerships, pet insurance can become more customised, accessible, and affordable.
Last year, FinTech Global spoke to Cloud Insurance and pet InsurTech Kanguro on the duo’s recent partnership.
Find the full post from Cloud Insurance here.
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