Pet insurers need to widen their view of the pet owner if they are going to successfully increase product penetration. By looking at the retail sector and in particular the pet care market insurers can widen their view of how these customer behave, see the commonalities and differences between the sectors, and then devise a new strategy for customer acquisition.
The pet care market is made up of three key product areas: food, accessories, and hygiene/health. As expected, food is the largest group and generates £3.1bn of sales followed by accessories at £738m and hygiene/health at £480m.
Within these product areas retailers follow similar strategies as insurers. For example for pet food there is the basic range, right up to the luxury freshly made products. Whereas discount retailers are driving down the cost of food, price comparison sites are also driving up the level of competition and challenging pricing for pet insurance.