Korean pet insurance market heats up as coverage expands

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South Korea’s growing pet market is driving competition within the insurance industry, leading to the introduction of specialized and expanded pet insurance coverages.

According to industry sources on Sunday, non-life insurance companies have been extensively upgrading their pet insurance products in 2024.

DB Insurance Co. recently revised its dog and cat insurance to cover dental treatments and specific skin medications like Apoquel that were previously excluded. It also introduced a rider to cover regular magnetic resonance imaging (MRI) and computed tomography (CT) scans, which are significant expenses in pet medical costs.

Hyundai Marine & Fire Insurance Co. expanded its pet product coverage to include cats. Responding to frequent incidents of dogs swallowing foreign objects, the company also introduced extended medical coverage, becoming the first in the industry to cover removal of foreign objects and specific medical treatments, such as medication costs for skin diseases, cancer, Cushing’s syndrome and heart disease.

Samsung Fire & Marine Insurance Co. launched a pet insurance product that includes coverage for pet funeral services, with premiums on a downward trend as competition intensifies. In the past, pet insurance policies lasted only 3 to 5 years, resulting in premium increases at renewal but products with a maximum term of 10 years were recently introduced. Convenient insurance with monthly premiums of less than 10,000 won are also now available, and companies are implementing new discount schemes, such as multi-pet discounts and adoption discounts for stray animals.

The number of pet insurance subscribers is rapidly increasing as consumers’ choices expand. The top 10 non-life insurance companies recorded 39,021 new pet insurance contracts in the first half of 2024, 67 percent of the previous year’s 58,456 new contracts. The industry expects to surpass the record high of 70,000 contracts in 2024. “Sales have quadrupled compared to the previous quarter ever since we revised the product,” a Hyundai Marine & Fire Insurance official said.

Collaboration between insurance companies and the veterinary industry is also on the rise. Meritz Fire & Marine Insurance Co., for example, signed a series of memoranda of understanding with veterinary organizations, including the Korean Animal Hospital Association, in 2024.