Did you give the family pet insurance?
According to the 2020 White Paper on the Chinese pet industry, by 2020 the number of urban dogs and cats in China was 100 million, the number of foster families was 99.8 million, the size of the pet market was 206.5 billion, the size of the pet market was 40 billion, of which more than 60 per cent had medical experience, and 56.4 per cent of the pet owners indicated that access was their greatest pain.
With huge market size and consumer demand, businesses smell business opportunities. So a new round of competitions on pet medicine began. This time, entrepreneurs are targeting pet insurance.
Blinger Yinghan, New Ripper and Tecon have recently announced a collaborative launch of a pet insurance product, which is expected to be on-line on 18 August. Upon insurance coverage, the pets are entitled to a free dose of rabies “Ribecon” (which can be used by dogs and cats) in more than 900 pet hospitals selected under the umbrella of the New Ripper Group.
At the same time, the Thai Patrony also provides $1,100 worth of medical coverage for vaccine accidents or vaccine accident deaths against rabies, as well as direct compensation services for in- and out-of-body deworming up to 40 per cent, with a maximum saving of $1,800.
In fact, pet insurance is not a novelty. So far, many traditional insurance companies, such as the Chinese people's insurance, China's safety, China's Taipa, Sunshine Insurance, Land Insurance and Public Security, have entered this subdivision, while the first Internet platform, including the payment of treasures, micro-insurance and so on, has been brought into the Bureau.
The Deputy General Manager of the Tecon Online Health Insurance Enterprise, Junchang, revealed that the product had developed a pricing strategy based on the psychological point of decision-making by Internet users and the characteristics of quick single-off transactions. The cumulative income from this product would be hundreds of millions if it were calculated roughly on the basis of 100 million pets and 10 per cent penetration. Of course, this is a very ideal situation. The reality, however, is that compared to the rate of over 40 per cent in Sweden, the most developed country, our country currently has less than 1 per cent penetration in pet insurance and is not rich in the type of insurance.
There are two main reasons for this. At the end of the pet medical market, there are low levels of standardization, non-transparent pricing systems, over-medicine and low levels of informationalization, on the one hand, and within the pet insurance market, there are low user awareness of pet insurance products, difficulties with pet identification, risk control difficulties, and under-attractive products. The issue of the attractiveness of the product in turn includes such “torture points” as the narrow scope of safeguards, the high level of exemption, the small number of targeted hospitals and the cumbersome processing of claims.
However, the specific performance expectations for this pet insurance were not disclosed by Qin.
For pharmaceutical enterprises and medical institutions, while there are no premium earnings, they can also benefit from them. In response to the interface news, the marketing director of the New Serpents Petty Group stated that the shared vision was to increase the penetration of pet insurance and, in the process of exploration, to work to improve the welfare of pets and pet owners, for example, by creating a shared pet social security system. In the case of pet risk penetration, it is hoped that at least 10 per cent may be increased. David Gocken, the head of conservation operations in the Greater Central China region of Burlinger, said, “As a producer of pet health products, Burlinger can bring product and technology-related knowledge to this collaboration.”
It is worth mentioning that in 2020, for the purpose of increasing the market for animal health in China, a new cooperative relationship was established between Blingo Yinghan and the New Ripper Group of China, which also acquired some of its shares.