Pet insurance is taken out to provide financial protection for costs that may arise when a pet is injured or falls ill. The insurance primarily covers expenses for veterinary visits.
In 2021, a total of 5.3 billion SEK was paid in premiums for various pet insurances. The most common type of pet insurance is for dogs, but a significant portion of the premiums also covers insurances for horses and cats. Compared to 2020, the premium income for pet insurance increased by a total of 0.6 billion SEK, which represents a 13 per cent growth. This is the largest annual increase in premium income from 2012 to 2021. Over the entire period, premium income for pet insurance has more than doubled.
The overall increase in premium income is most likely due to more insurance contracts being taken out for pets. It could also be a result of increased premiums for pet insurance or policyholders choosing to take out more comprehensive and therefore more expensive insurance policies.
The premiums collected by insurance companies are intended to cover both claims costs and expenses such as salaries and premises. In 2020, insurance companies paid out a total of 3.4 billion SEK in compensation for costs incurred when insured animals were affected by illness or injury. The claims payments primarily consist of reimbursements for veterinary care. Compared to 2019, the payments increased by 0.4 billion SEK, representing a 14 per cent increase. This is the largest increase during the period from 2011 to 2020. Compared to 2011, the claims payments have more than doubled.
