Last year, the number of pet insurance policies in South Korea surpassed 250,000 for the first time, marking a record high. Once considered a niche market, pet insurance has emerged as a new battleground for insurers, who are now competing to attract customers through various initiatives, including lost pet recovery services, partnerships with pet specialty stores, and support for animal adoption.
According to the insurance industry on June 18, Kakao Pay Insurance entered the pet insurance market in March of this year. The company launched a product that covers up to 5 million won for medical expenses on the day of surgery and a maximum of 40 million won annually. Recently, it strengthened its lost pet notification service, “Gachi Chajgae,” in collaboration with the animal rescue organization “Jihappy Dog.” Pet insurance subscribers and users of Jihappy Dog can report information about lost animals, which is then disseminated via KakaoTalk, while Jihappy Dog assists with on-site searches and rescues. This move indicates an expansion beyond insurance sales into pet care services to enhance brand competitiveness.
DB Insurance is focusing on expanding its offline presence. It recently signed a business agreement with E-Mart’s pet specialty brand, “Mollis,” to begin selling a dedicated product called “Ola! Pet Insurance.” The strategy aims to naturally expose pet insurance to customers visiting the store for pet supplies, thereby capturing new demand. Additionally, it is collaborating with the pet funeral platform “Popoz” to promote pet funeral culture and raise awareness of pet insurance.
My Brown, the first pet-specialized insurance company in South Korea, is broadening its reach into the public sector. It recently participated in a project with Gyeonggi Province to provide “Adoption Animal Assurance Insurance” for families adopting stray animals. Following its involvement in a project in Gangnam District, it is now expanding its public cooperation model to promote stray animal adoption and enhance pet welfare. Furthermore, it has broadened its coverage from products focused on surgeries or high-cost treatments to include routine veterinary care, surpassing 20,000 cumulative policyholders within just 10 months of launch.
The surge in the pet insurance market is driven by rapid growth. According to the Insurance Research Institute, as of the end of last year, the number of pet insurance contracts held by 13 domestic insurers reached approximately 250,000, a 55.3% increase from the previous year. During the same period, gross premiums rose to 129.1 billion won, marking a 61.1% increase and surpassing 100 billion won for the first time.
However, the enrollment rate remains low compared to major countries abroad. As of 2024, the pet insurance enrollment rate in South Korea is 2.1%, significantly lagging behind countries like the UK and Sweden. In the UK, the enrollment rates are 25% for dogs and 12.1% for cats, while Sweden boasts rates of 90% for dogs and 50% for cats.
Industry experts believe that simplifying the claims process, promoting animal registration systems, and accumulating pet disease data are essential for market expansion. In particular, the accumulation of veterinary care information could enable insurers to develop products and set premiums based on breed and age-related risk factors, potentially leading to significant market growth.
Jung Soo-jung, a researcher at the Insurance Research Institute, stated, "The domestic pet insurance market has entered a phase where competition among insurance companies intensifies after the standardization of key product conditions. To ensure market growth and stability, related infrastructure improvements must be implemented concurrently."
* This article has been translated by AI.
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