BY SAMANTHA BARTLETT, DVM
Millennial pet owners view their pets as akin to having children, as many Millennials are waiting later to have children. Although a large number of Millennials are renters, many that do buy houses cite their pet as one of the factors driving them to purchase rather than rent. These pet owners are also more likely to plan vacations around their pets and make home cooked meals for their pets.
A study conducted in 2018 by Liberty Mutual Insurance found that Millennials are more likely to own pets and are more likely to have health insurance for those pets than GenXers and Baby boomers. The survey found that 57 percent of Millennials own a pet and 31 percent of those pet owners have pet insurance. This study also indicates that Millennial pet owners are more likely to sacrifice their own health care to cover the costs of care for their pets. In short, Millennials are the largest group of pet owners and are driving the pet care market in demand for health care and spending.
Because of this young generation of pet owners, pet insurance policies grew by 17% last year and the number of claims has increased dramatically. These owners are seeking the best health care they can attain and are more likely to spend larger amounts of money on products that are more ecologically friendly and better for their pet’s overall health and development. These owners also realize that catastrophic events occur for which they may not be able to afford out of pocket and also that aging pets require more costly care. These owners are far more willing to spend money to save their pets and prolong lives than they are to euthanize.
Pet insurance is a $774 million industry and includes a dozen major companies. Nationwide, the biggest pet insurance provider, estimates that almost 50% of fortune 500 companies offer pet insurance as an employee benefit. Many employers are offering pet insurance benefits to entice potential employees to join the company. The average premium costs about $600 per year. As pet owners seek more advanced treatment and expect longer life spans of their pets, insurance will become increasingly important to managing the costs of health care.
On the veterinary aspect, owners with pet insurance are more willing to come to the vet and spend more money per visit than those without insurance. As health care providers, we can help drive this growing trend by helping to educate owners on the benefits of having insurance for their pet and by making it easy for claims to be filed, whether it is doing it through the clinic or filling out claims forms and providing records in a timely and convenient manner.
