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Pet Insurance in North America, 4th Edition
November 1, 2010
Now in its fourth edition, Packaged Facts’ Pet Insurance in North America is the most
comprehensive examination of the U.S. and Canadian pet insurance markets available
and a must-have for any company interested in this dynamic industry. Although sales
growth slowed due to the recession, revenues (measured as gross written premiums)
remained in the double digits in 2009 while delivering a 2005-2009 compound annual
growth rate of 21%. Packaged Facts expects the North American market for pet
insurance to continue to chart strong annual increases over the next five years, with the
high level of competitive activity helping to offset the slow economic recovery and
ongoing challenge of communicating the value of pet health insurance to budget-
watching consumers.
As of 2010, industry pioneer Veterinary Pet Insurance (VPI) continues to lead the
market. However, both the U.S. and the Canadian pet insurance markets have
experienced significant market share shifts during the past five years as more than a
half dozen new companies have come onto the field. Each of these companies brings
with it unique strengths, in some cases including potent co-marketing affiliations with
powerful brands (e.g., PetPartners and the AKC, PurinaCare with its own famous
name), and in other cases including important retail channel thrusts (e.g., PetFirst with
Kroger and Petfinder.com, and Trupanion with Petco). The industry is also seeing more
investment backing and large insurance companies coming into the market as
underwriters, including Aon with Healthy Paws, Aetna with Pets Best, and Berkshire
Hathaway with PurinaCare.
Based on primary research including interviews with every leading pet insurance
provider in North America, this latest edition of Packaged Facts’ groundbreaking 2003
report offers a road map for competing in this market both now and in the years ahead.
All of the top players are profiled in depth, including VPI, Pethealth, Hartville (ASPCA),
Western Financial/Petsecure, PetFirst, PetPartners (AKC), Vetinsurance/Trupanion,
Pets Best, Embrace, Fetch (Petplan USA) and PurinaCare. Statistics provided include
historical and projected market revenues, number of policies in force, and company
shares (both U.S. and Canadian), along with profiles of pet owners and pet insurance
purchasers, based on data from sources including Experian Simmons, The American
Pet Products Association, and Packaged Facts own consumer surveys.

2. Chapter 1: Executive Summary
Introduction
Scope of Report
Report Methodology
Market Analysis
Consumer Analysis
Market Size and Composition
North American Market Growth Continues
Looking Ahead
Figure 1-1: North American Pet Insurance Market Revenues: United States,
Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars)
Number of Policies in Force
Veterinary Chanel Feels Recessionary Pinch But Retains Upward Curve
Competitive Overview
Top North American Marketers
Figure 1-2: Estimated Share of North American Pet Insurance Market by
Company, 2005 vs. 2009 (percent)
Market Share Shifts
Competitive Trends
Consumer Trends
Pet Ownership Overview
Figure 1-3: Household Ownership Rates for Selected Pet-Owning Classifications,
2010 (percent of U.S. households)
Pet Owners and Insurance
Chapter 2: Market Trends
Introduction
Market Definition
Equine Insurance Excluded
Range of Coverage
Typical Restrictions
Gross Written Premiums and Conversion Rates
Market Size and Composition
North American Market Growth Continues
Table 2-1: North American Pet Insurance Market Revenues: United States,
Canada, and North America, 2005-2009 (in millions of U.S. dollars)
Figure 2-1: Share of North American Pet Insurance Market: United States vs.
Canada, 2002-2009 (percent)
Number of Policies in Force
Figure 2-2: North American Pet Insurance Market: Number of Pet Insurance
Policies in Force, 2005-2009
Share of Policies by Animal Type
Figure 2-3: Share of U.S. Pet Insurance Market Revenues by Animal Type, 2009
(percent)
Market Outlook
Recession Takes a Toll
A Stuttering Recovery

3. Pet Owners Not Immune to Economic Downturn
Figure 2-4: Level of Agreement with Statement “I Am Spending Less on Pet
Products These Days Because of the Economy,” 2010 (percent of U.S. pet
owners)
Table 2-2: Economic Outlook of U.S. Pet Owners: Now vs. Last 12 Months
(percent)
Figure 2-5: Level of Agreement with Statement “I Anticipate Spending More on
Pet Products Over the Next 12 Months,” 2010 (percent of U.S. pet owners)
Table 2-3: Economic Outlook of U.S. Pet Owners: Now vs. Next 12 Months
(percent)
Veterinary Chanel Feels Recessionary Pinch But Retains Upward Curve
Figure 2-6: Percentage of Dogs and Cats Given Medication and/or Drugs: 2000-
2008 (percent)
Table 2-4: Veterinarian Visits, Expenses and Services Received, 2008 (number,
percent and dollars)
Table 2-5: Average U.S. Household Expenditures on Veterinary Services, 1998-
2008 (in dollars)
Veterinarians Lining Up Behind Pet Insurance
Figure 2-7: Percentage of Veterinarians Who Actively Recommend Pet
Insurance, 1997-2009
Figure 2-8: Percentage of Veterinarians Who Would Like to See Wider Use of
Pet insurance by Year of Veterinary School Graduation
Consumer Awareness/Trade Support/Media Coverage Up
North American Pet Health Insurance Month
Improving PR
North American Pet Health Insurance Association (NAPHIA)
Schwarzenegger Axes California Pet Insurance Bill
Human/Animal Bond a Potent Force
Figure 2-9: “Consider My Pet(s) Part of the Family”: By Percent of Pet, Dog/Cat,
Dog and Cat Owners, February 2009 (percent)
Table 2-6: Mean Number of Veterinary Visits: By Human/Animal Bond Among
Dog and Cat Households, 2006
Table 2-7: Mean Veterinary Expenditures: By Human/Animal Bond Among Dog
and Cat Households, 2006 (in dollars)
Growing Populations of Dogs and Cats
Table 2-8: Number of Dogs and Cats in the United States: 2000, 2002, 2004,
2006 and 2008 (number in millions and percent)
Figure 2-10: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2010
(percent of U.S. households)
Internet Popularity Among Pet Owners a Plus
Table 2-9: Level of Pet Owner Agreement with Statement: “I Use the Internet to
Help Find and Choose Pet Products,” February 2010 (percent)
Table 2-10: Level of Pet Owner Agreement with Statement: “I Buy Pet Products
Online,” February 2010 (percent)
Table 2-11: Selected Internet-Related Psychographics: Adults Overall vs. Dog or
Cat Owners, 2010 (percent and index)

4. Impact of Aging Pet Population
Figure 2-11: Percentage of Dogs and Cats Age 6 and Over: 1996 vs. 2006
(percent)
Impact of Pet Overweight, Obesity
Table 2-12: Percentage and Number of Overweight and Obese Dogs and Cats,
2009
Increased Competition/Channel Expansion
Shift Away from Credit Usage Bodes Well
Table 2-13: Credit Card Ownership and Usage: By Frequency, 2005-2010
(percent)
Looking Ahead
Figure 2-12: Projected North American Pet Insurance Market Revenues: United
States, Canada, and North America, 2009 vs. 2014 (in millions of U.S. dollars)
Chapter 3: Competitive Overview
Market Share Trends
Top North American Marketers
Figure 3-1: Estimated Share of North American Pet Insurance Market: By
Company, 2005-2009 (percent)
Figure 3-2: Estimated Share of U.S. Pet Insurance Market: 10 Companies, 2009
(percent)
Figure 3-3: Estimated Share of U.S. Pet Insurance Market: By Company, 2005-
2009 (percent)
Figure 3-4: Estimated Share of Canadian Pet Insurance Market: By Company,
2005-2009 (percent)
Market Share Shifts
Table 3-1: North American Marketers of Pet Insurance, October 2010
Competitive Trends
A New Ball Game
Figure 3-5: Cumulative Share of North American Pet Insurance Market
Revenues: Over 5% Share Companies vs. Under 5% Share Companies, 2005-
2009
Differentiation to the Fore
The Underwriting Advantage
Company Snapshot: PurinaCare Insurance Services, Inc.
Table 3-2: PurinaCare Monthly Ultimate Premiums Estimate, June 2008-
November 2009 (in dollars)
Enter Healthy Paws—and Aon
Next Up: PetSafe
More International Cross-Over
Internet More Important Than Ever
The Company Benefits Thrust
Competition from Alternative Payment Options
CareCredit
Pet Assure
Banfield
Other

5. Looking Ahead
Chapter 4: Competitor Profiles
Competitor Profile: Embrace Pet Insurance
Background
Company Positioning
Recessionary Adjustments
Competitor Profile: Hartville Group, Inc
Company Overview
Types of Plans
Management Shakeup Yields Growth
Company Voluntarily Delists Stock
ASPCA Venture Going Strong
Illustration 4-1: ASPCA Pet Insurance Ad in Veterinary Practice News (June
2010)
Hartville Premiums Up in 2009
Figure 4-1: Hartville Group Gross Written Pet Insurance Premiums, 2001-2009
(in millions of dollars)
Number of Active Policies at Approximately 120,000
Figure 4-2: Hartville Group Number of Active Pet Insurance Policies, 2001-2009
Ongoing Strong Consumer Focus
Increased Focus on Veterinary, Company Benefits Channels
Competitor Profile: PetFirst Healthcare LLC
Company Overview
Company Strategy
Focus on Simplicity
More Choices
Ramping Up Online
The Kroger Connection
The Petfinder.com Connection
The Home Again Connection
Expansion in Company Benefits Arena
Competitor Profile: Pethealth, Inc.
Company Overview
Revenue Growth
Table 4-1: Pethealth Revenues, 2001-2009 (in millions of Canadian dollars)
Pet Insurance Operations
Brokers
Underwriting
U.K. Market Entry
EVE Online Claims Processing
North American Pet Insurance Performance
Table 4-2: Pethealth Pet Insurance North American Gross Written Premiums,
2001-2009 (in millions of U.S. dollars)
Table 4-3: Number of Pethealth Pet Insurance North American Policies in Force,
2001-2009
United States v. Canada

6. Table 4-4: Share of Pethealth Pet Insurance North American Gross Written
Premiums: U.S. vs. Canada, 2005-2009 (percent)
Pet Insurance Programs and Marketing
Non-Insurance Operations
PetPoint Shelter Management Software
24PetWatch Pet Registry Services
Petango.com
Competitor Profile: PetPartners, Inc.
Company Background
AKC and CFA Policy Types
AKC and CFA Program Marketing
Illustration 4-2: AKC Pet Insurance Ad in AKC Family Dog (April/May 2010)
Company Launches PetPartners “Gemstone Brand,” Expands into Company
Benefits Arena
New Partner Programs
Company Profile: Petplan USA (Fetch, Inc.)
Company Overview
The U.K. Connection
The HSUS Connection
Media Focus
Illustration 4-3: Promotional Banner for Fetch Magazine
Illustration 4-4: Petplan Print Ad: Bark Magazine (May/June 2009)
Competitor Profile: Pets Best Insurance Services
Company Overview
The AVMA GHLIT Partnership
Product Positioning
Illustration 4-5: Pets Best Ad in Animal Wellness (December/January 2010)
Channel Focus
Affinity Relationships
Illustration 4-6: ChaseHealthAdvance and Pets Best Joint Marketing Ad (May
2009)
Competitor Profile: Veterinary Pet Insurance Co.
Company Overview
Company Realigns with Focus on Consumer Advocacy
Commitment to Benefit Schedule
Belief in Indemnity Insurance
Adherence to Regulation
A New Product Roster
Emphasizing Wellness Care
2009 Revenues of $184 Million
Table 4-5: Veterinary Pet Insurance Gross Written Premium 1998-2009 (in
millions of dollars)
Advertising Spending and Themes
“That’s a Good Human” Campaign Launched
Illustration 4-7: VPI Print Ad: “That’s A Good Human” Campaign
Public Relations Mix “Fun Facts” with Pet Health Tips

7. Web-Based Marketing and Support
The Iams Connection
Veterinary Channel Remains VPI Focus
Industry Leader in Voluntary Benefits Arena
Competitor Profile: Vetinsurance International (Trupanion)
Company Background
Trade Approach
Trupanion Plus Petco
Consumer Approach
Illustration 4-8: Trupanion Trade Ad (Veterinary Practice News, June 2010)
Policy Changes
Trupanion Online
Cause Marketing
Competitor Profile: Western Financial Insurance Company
Company Background
Western Financial In
Petplan Out
Pet Insurance Brands and Channels
Most Recommended Brand in Veterinary Channel
Adoptsecure Offered in Shelter Channel
Premiums, Policies Continue Upward Trend
Table 4-6: Western Financial Pet Insurance Gross Written Premiums, 2003-2009
(in millions of U.S. dollars)
Table 4-7: Western Financial Pet Insurance Number of Active Policies, 2005-
2009
Company Launches Value-Priced Option: Petset
Hbc Brand Launched in 2008
PurinaCare Canada
PC Financial Brand Targets Loblaw Supermarket Crowd
CAA Brand Reserved for Auto Club Members
Strategic Alliances
Public Relations and Cause Marketing
Chapter 5: Consumer Trends
Pet Ownership Overview
Methodology and Data Sources
52% of Households Keep Pets
Figure 5-1: Household Ownership Rates for Selected Pet-Owning Classifications,
2010 (percent of U.S. households)
Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning
Classifications, 2005, 2007, and 2010 (percent of U.S. households)
Overall Demographics for Dog Owners
Regional Skews by Number of Dogs Owned
Overall Demographics for Cat Owners
Household Composition Skews by Number of Cats Owned
Table 5-2: Demographics for Dog Ownership, 2010 (percent, number of
households, and index)

8. Table 5-3: Selected Demographics for Keeping One Pet Dog, 2010 (percent,
number of households, and index)
Table 5-4: Selected Demographics for Keeping Two or More Pet Dogs, 2010
(percent, number of households, and index)
Table 5-5: Demographics for Cat Ownership, 2010 (percent, number of
households, and index)
Table 5-6: Selected Demographics for Keeping One Pet Cat, 2010 (percent,
number of households, and index)
Table 5-7: Selected Demographics for Keeping Two or More Pet Cats, 2010
(percent, number of households, and index)
Pet Owners and Insurance
APPA Consumer Surveys Show Rise in Pet Insurance Ownership Rates
5% of Dog Owners With a HH Income of $60K+ Carry Pet Insurance
Figure 5-2: Prime Demographics for Purchasing of Dog Insurance, 2008 (percent
of U.S. dog owners)
Cat Insurance Usage Rates Show Opposite Pattern by HH Income
Figure 5-3: Pet Insurance Ownership Patterns by Household Income: Dog
Owners vs. Cat Owners, 2008 (percent of U.S. dog or cat owners)
Vets Are Most Important Source for Pet Insurance Awareness
Figure 5-4: Sources from Which Dog or Cat Owners Become Familiar with Pet
Insurance, 2010 (percent)
37% of Dog/Cat Owners Are Not Familiar with Pet Insurance Policies
Figure 5-5: Levels of Familiarity with Pet Policies Among Dog or Cat Owners
Who Do Not Carry Insurance, 2010 (percent)
Top Reasons for Not Having Pet Insurance Policies
Figure 5-6: Reasons for Not Carrying Pet Insurance: Dog or Cat Owners, 2010
(percent)
Table 5-8: Demographic Characteristics for Purchasing of Dog Insurance, 2008
(percent of U.S. dog owners)
Table 5-9: Top Demographic Characteristics Favoring Purchasing of Cat
Insurance, 2008 (percent of U.S. adults)

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