The pet market has a high potential for growth within the insurance industry. Pay-outs hit a record high £785 million in the UK last year with the average claim standing at £793. Research conducted by the Association of British Insurers suggests higher costs are associated with a shift in technological advancements; increasingly sophisticated medical procedures provide an accurate diagnosis and naturally demand more investment and higher costs for customers. In May this year, a dog suffering from arthritis successfully received an ankle replacement implemented by an American company called BioMedtrix. This was the first procedure of its kind in the UK, providing an insight into what can be expected with advanced medical treatment for animals.
How has digital transformation shaped pet insurance?
Developments in technology are enabling insurance providers to mine their data in real-time to better predict and benchmark claim costs leading ultimately to far greater automated claims assessment and also to deliver more competitive profitable premium quotes for the customer. Like most industries, customers have become savvier to which company can provide the best deal, meaning insurance providers need to stay competitive and deliver high customer service standards.
Insurtech has also had a significant impact on pet insurance, with numerous platforms enabling companies to deliver tailored services to their target audiences, inevitably resulting in higher levels of customer satisfaction. Although the pet sector is a niche market, there is plenty of opportunity; only 25% of the UK market and 2% of the US market currently have pet insurance.
2020 will be an exciting year for Aquarium Software as we grow our business in the global pet insurance market. We have already identified opportunities to explore how our digital platform can deliver significant benefits to insurers, including efficiencies for business operations and enhanced customer experience. We look forward to driving digital transformation further into this sector in the new year.