Olha Luhova, PhD in Economics, Associate Professor, Associate Professor of the Accounting and Taxation Department, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID ID: 0000-0003-4432-0295
e-mail: lugova@mnau.edu.ua

Olha Melnyk, Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID ID: 0000-0001-8639-7755
e-mail: melnikoi@mnau.edu.ua

Pet Insurance: Challenges and Prospects for Development

Abstract. Introduction. The world animal insurance market is developing dynamically, demonstrating stable growth. The main factors of this growth are the increase in the number of pets, the increase in the cost of veterinary services and to raise the level of knowledge of the owners about financial risks related to medical care of animals. The most developed regions in the field of pet insurance are North America, Europe and the Asia-Pacific Region. In Ukraine, the pet insurance market is at the stage of formation, which necessitates the study of world experience and the development of effective mechanisms for its development.

Purpose. The purpose of the study is to analyze the current state of the pet insurance in the world and in Ukraine, to identify the main challenges, prospects and possible directions of development of this segment of the insurance business.

Results. It is established that the main players in the market are large insurance companies that offer insurance products adapted to the needs of animal owners. The most popular types of insurance are policies in case of illness and accidents that occupy about 97% of the market. Insurance programs, including preventive treatment, wellness services and coating of specialized veterinary procedures, are also actively developing. The pet insurance market in Ukraine is at the stage of formation and is characterized by a low level of penetration of insurance products. Despite the considerable number of pet owners, insurance services remain low in widespread due to low awareness of the population, a limited number of insurance programs and insufficient trust in insurance companies, the high cost of insurance policies, the lack of uniform payment standards and insufficient state support. There are only a few companies offing insurance policies for pets on the market.

Conclusions. The global pet insurance market shows stable growth caused by social and economic factors. Innovative solutions and digital technologies open up new opportunities to expand the market. The use of mobile applications, telemedicines and online platforms for policies allows you to make insurance services more accessible and understandable to consumers. Also, the expansion of insurance coverage to preventive measures, alternative treatment methods and individual insurance programs can increase the number of insured animals. Further development of the pet insurance depends on a comprehensive approach that includes improving the legislative framework, educational campaigns and cooperation between insurance companies, veterinary clinics and government bodies. 

Keywords: insurance; insurance market; insurance companies; insurance amount; insurance contract.

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