According to recent research by Zentralverband Zoologischer Fachbetriebe e.V. (ZZF), German households make a home for 33.9 million pets, with 15.9 million cats and 10.5 million dogs. 44% of German households—and even 68% of households with children—own at least one pet.1 Although there are fewer pets overall (approximately 1.5 million cats and 500,000 dogs in Switzerland2 and 2 million cats and 800,000 dogs in Austria3) in Switzerland and Austria, Switzerland (40% of households2) and Austria (46% of households3) show high pet ownership rates as well, indicating a substantial market for pet health insurance across DACH.
Currently, pet-related liability coverages are integrated into private liability insurances across DACH for small pets, excluding dogs and horses that typically require separate coverage. In most German federal states, dog liability insurance is even mandatory4. However, dedicated pet health and accident insurance covering surgery and veterinary costs remains significantly underserved: Switzerland shows market penetration rates lower than 10%5, and Germany, despite higher adoption (~30% of dog owners and 23% of cat owners6), lacks clear market leadership and remains competitively fragmented. This coverage gap presents a major opportunity for health insurers to break into the property and casualty (P&C) insurance market and for P&C insurers to diversify their portfolio. Pet retailers, veterinary clinics, and pet shelters are in a special position since they can leverage their touchpoints with pet owners to sensitise for pet health and promote pet health insurance.
In contrast to mobility and home insurance, pet insurance ecosystems are still relatively underdeveloped uncovering plenty of business opportunities for partnerships.
NEOINSURANCE® principles at play: ecosystems, data, and innovation
Modern pet insurance solutions ideally leverage three NEOINSURANCE® core beliefs:
- Ecosystem enabled: Integration of insurance at various consumer touchpoints at the point of sale.
- Data as an asset: Using data from IoT pet devices for personalised and preventive care.
- Innovative product design: Structuring coverages similarly to human health insurance, offering customisable add-ons such as dental care, wellness checks, alternative treatments, and outpatient services.
What comes next?
In the full article, we go beyond the market potential to uncover practical execution strategies:
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Three ecosystem case studies from Germany and Switzerland showcasing how pet retailers and insurers are forming powerful affinity partnerships.
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How health insurers can organically expand into P&C by offering pet insurance as part of family-centred plans.
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Product design blueprints mapping the structural similarities between pet and human health insurance.
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Data-driven cross-selling strategies using pet behaviour insights to inform targeted offers.
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Operational and regulatory challenges – and how to overcome them with ecosystem thinking.
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How Synpulse supports insurers and retailers in building successful pet insurance propositions.
How can Synpulse support shape your pet insurance offering
Synpulse, with deep expertise in health and P&C insurance, supports insurers and ecosystem partners in navigating these complexities. From developing distribution strategies and innovative propositions to realizing ecosystem-based solutions with access to insurtech networks and insurance partners, Synpulse acts as a catalyst for successful market entry and sustainable growth.
Ultimately, expanding into pet health insurance represents a compelling strategic move, aligning insurers, retailers, and consumers in a mutually beneficial ecosystem, closing the protection gap for our beloved pets.
If you are exploring opportunities in the pet insurance space, contact us today to discover how Synpulse can help you build a future-proof, ecosystem-enabled proposition.
References:
1. TierWelt (2015), Schweizer versichern ihre Haustiere nicht
2. RTL (2025), Studie: Mehr Menschen wünschen sich Schutz für ihre Haustiere
3. Gebührenordnung für Tierärzte (GOT), revised 22 November 2022
