A high-growth market with low penetration

Across Asia-Pacific, pet ownership has evolved from companionship to family membership, and insurance is now catching up. With veterinary costs soaring and owners increasingly seeking quality healthcare for their pets, demand for protection is accelerating. Yet coverage remains minimal, leaving a vast protection gap ready to be filled.

The APAC pet insurance market, valued at approximately USD 4.31 billion in 2024, is projected to reach USD 20.35 billion by 2033, representing a compound annual growth rate (CAGR) of 14.6%[1]. However, penetration across the region remains critically low compared with more mature markets.

Even developed insurance regions like DACH (Germany, Austria, and Switzerland), which we covered in our previous article, show limited coverage, underscoring how much untapped potential remains across markets.

Pet insurance is more than a niche. It represents the next bridge between health, property, and lifestyle ecosystems, where carriers can test digital, embedded, and ecosystem-led growth models that will define the future of personal lines insurance.

The forces driving pet insurance growth in APAC

Rising incomes and changing lifestyles are reshaping pet ownership across the region. As middle-class households expand and urbanisation accelerates, pets are transitioning from companions to family members, and pet owners are willing to pay for their care.

In Singapore, specifically, the pet insurance market stood at USD 104.4 million in 2024 and is anticipated to grow to USD 279.22 million by 2033, advancing at a CAGR of 11.5%[2]. Its high urbanisation, affluent population, and robust regulatory framework make it an attractive market for innovative insurance products.

Recent product launches also reflect increasing market maturity, with offerings focusing on preventive veterinary services and multi-pet discounts. These innovations address evolving consumer needs while expanding the market beyond traditional accident-only coverage.

The pattern holds across the region. As disposable incomes rise, so does the willingness to invest in comprehensive pet healthcare. This economic momentum is fuelling the market's double-digit growth trajectory, transforming pet insurance from a niche product into a mainstream necessity.  

Key factors driving demand across APAC include:

• Rising veterinary costs: In Singapore, veterinary bills have seen significant increases in recent years, with reports indicating an 8.4% rise in 2022 and a 10.3% rise in 2023[3], making pet insurance an essential safeguard against unexpected medical expenses.
• Pet humanisation: Reports observe that owners increasingly treat pets as family members, prioritising health and wellness spending. This trend is reflected in adoption rates, with 60% of Asians owning a pet and 32% considering their cats and dogs their best friends.[4]
• Digital convenience: Pet owners can now access insurance through online sign-ups, virtual vet consultations, and app-based claims, making the process faster and easier, and mirroring health insurance capabilities.
• Rising middle-class incomes: Higher disposable income and insurance literacy correlate with greater interest in pet coverage.

Lessons from Europe’s pet insurance maturity curve

While APAC’s market is still developing, Europe offers a useful benchmark for insurers seeking to accelerate adoption. Countries like Germany and Switzerland demonstrate how embedding pet insurance within ecosystems, such as retail chains, veterinary clinics, and Insurtech platforms, can increase uptake.

Three key lessons stand out[5]:

1. Tiered, human-like product designs: Coverage mirrors health insurance, with add-ons for preventive care, dental, or outpatient treatment, making it easier for customers to understand and compare.
2. Ecosystem integration: Embedding insurance into the pet journey (e.g., adoption, purchase, or clinic visits) dramatically increases uptake and reduces distribution costs.
3. Preventive health positioning: Shifting the narrative from “accident cover” to “wellness protection” encourages recurring engagement and loyalty.

For APAC insurers, the takeaway is clear: combine Europe’s structural lessons with Asia’s digital edge to leapfrog adoption curves.

How Synpulse empowers insurers to capture the market

The opportunity is multi-dimensional:

• Health insurers can extend existing capabilities such as networks, claims processes, and customer trust, into the pet domain, capturing synergies across health and wellness ecosystems.
• P&C carriers can use pet insurance as an intelligent entry point to health coverage, diversifying their product mix while building new customer data foundations.
• Ecosystem orchestrators such as banks, e-commerce players, and retailers can embed coverage at the point of sale, driving conversion and stickiness.

Early movers who align distribution, pricing, and partnerships around these dynamics can capture disproportionate share in a market that rewards innovation over incumbency.  

Synpulse supports insurers across the pet insurance value chain:

• Product design and pricing: We help develop tiered coverage models that balance comprehensive protection with affordability, using actuarial analysis tailored to regional veterinary costs and claims patterns.
• Distribution strategy: Our team designs embedded insurance solutions for veterinary clinics, pet retailers, and digital platforms, optimising point-of-sale integration and conversion rates.
• Digital transformation: We build mobile-first customer journeys, from instant onboarding to AI-powered claims processing, reducing friction and improving customer satisfaction.
• Regulatory navigation: We guide insurers through APAC's diverse regulatory landscape, ensuring compliance while identifying growth opportunities in emerging markets.
• Partnership ecosystems: We facilitate strategic partnerships with veterinary networks, pet care platforms, and retail channels to expand reach and build sustainable competitive advantages.

Why early movers advantage matters

APAC's pet insurance market is young but scaling fast. Rising veterinary costs, pet humanisation, digital-first distribution, and creatively embedded models create a strategically attractive market for insurers willing to innovate locally.

By drawing lessons from Europe's mature markets and adapting them to APAC's unique economic and cultural contexts, insurers can design products, partnerships, and ecosystems that not only close the protection gap but also deliver long-term customer value.

The opportunity is substantial: pet insurance remains underpenetrated in APAC, and early movers who combine digital innovation with embedded distribution are well positioned to capture significant market share in this rapidly growing segment.

References:

1. Asia-Pacific Pet Insurance Market (Market Data Forecast, July 2025).
2. Singapore Pet Insurance Market Size & Outlook (Deep Market Insights, 2025).
3. Vet Talk: Understanding and managing the rising cost of pet healthcare (The Straits Times, March 2025).
4. How the trend to humanisation is shaping up Asia’s pet economy (Allianz Global Investors, March 2024).
5. Expanding Health Insurance to Our Furry Family Members – Closing the Pet Protection Gap (Synpulse, August 2025).

A high-growth market with low penetration

Across Asia-Pacific, pet ownership has evolved from companionship to family membership, and insurance is now catching up. With veterinary costs soaring and owners increasingly seeking quality healthcare for their pets, demand for protection is accelerating. Yet coverage remains minimal, leaving a vast protection gap ready to be filled.

The APAC pet insurance market, valued at approximately USD 4.31 billion in 2024, is projected to reach USD 20.35 billion by 2033, representing a compound annual growth rate (CAGR) of 14.6%[1]. However, penetration across the region remains critically low compared with more mature markets.

Even developed insurance regions like DACH (Germany, Austria, and Switzerland), which we covered in our previous article, show limited coverage, underscoring how much untapped potential remains across markets.

Pet insurance is more than a niche. It represents the next bridge between health, property, and lifestyle ecosystems, where carriers can test digital, embedded, and ecosystem-led growth models that will define the future of personal lines insurance.

The forces driving pet insurance growth in APAC

Rising incomes and changing lifestyles are reshaping pet ownership across the region. As middle-class households expand and urbanisation accelerates, pets are transitioning from companions to family members, and pet owners are willing to pay for their care.

In Singapore, specifically, the pet insurance market stood at USD 104.4 million in 2024 and is anticipated to grow to USD 279.22 million by 2033, advancing at a CAGR of 11.5%[2]. Its high urbanisation, affluent population, and robust regulatory framework make it an attractive market for innovative insurance products.

Recent product launches also reflect increasing market maturity, with offerings focusing on preventive veterinary services and multi-pet discounts. These innovations address evolving consumer needs while expanding the market beyond traditional accident-only coverage.

The pattern holds across the region. As disposable incomes rise, so does the willingness to invest in comprehensive pet healthcare. This economic momentum is fuelling the market's double-digit growth trajectory, transforming pet insurance from a niche product into a mainstream necessity.  

Key factors driving demand across APAC include:

• Rising veterinary costs: In Singapore, veterinary bills have seen significant increases in recent years, with reports indicating an 8.4% rise in 2022 and a 10.3% rise in 2023[3], making pet insurance an essential safeguard against unexpected medical expenses.
• Pet humanisation: Reports observe that owners increasingly treat pets as family members, prioritising health and wellness spending. This trend is reflected in adoption rates, with 60% of Asians owning a pet and 32% considering their cats and dogs their best friends.[4]
• Digital convenience: Pet owners can now access insurance through online sign-ups, virtual vet consultations, and app-based claims, making the process faster and easier, and mirroring health insurance capabilities.
• Rising middle-class incomes: Higher disposable income and insurance literacy correlate with greater interest in pet coverage.

Lessons from Europe’s pet insurance maturity curve

While APAC’s market is still developing, Europe offers a useful benchmark for insurers seeking to accelerate adoption. Countries like Germany and Switzerland demonstrate how embedding pet insurance within ecosystems, such as retail chains, veterinary clinics, and Insurtech platforms, can increase uptake.

Three key lessons stand out[5]:

1. Tiered, human-like product designs: Coverage mirrors health insurance, with add-ons for preventive care, dental, or outpatient treatment, making it easier for customers to understand and compare.
2. Ecosystem integration: Embedding insurance into the pet journey (e.g., adoption, purchase, or clinic visits) dramatically increases uptake and reduces distribution costs.
3. Preventive health positioning: Shifting the narrative from “accident cover” to “wellness protection” encourages recurring engagement and loyalty.

For APAC insurers, the takeaway is clear: combine Europe’s structural lessons with Asia’s digital edge to leapfrog adoption curves.

How Synpulse empowers insurers to capture the market

The opportunity is multi-dimensional:

• Health insurers can extend existing capabilities such as networks, claims processes, and customer trust, into the pet domain, capturing synergies across health and wellness ecosystems.
• P&C carriers can use pet insurance as an intelligent entry point to health coverage, diversifying their product mix while building new customer data foundations.
• Ecosystem orchestrators such as banks, e-commerce players, and retailers can embed coverage at the point of sale, driving conversion and stickiness.

Early movers who align distribution, pricing, and partnerships around these dynamics can capture disproportionate share in a market that rewards innovation over incumbency.  

Synpulse supports insurers across the pet insurance value chain:

• Product design and pricing: We help develop tiered coverage models that balance comprehensive protection with affordability, using actuarial analysis tailored to regional veterinary costs and claims patterns.
• Distribution strategy: Our team designs embedded insurance solutions for veterinary clinics, pet retailers, and digital platforms, optimising point-of-sale integration and conversion rates.
• Digital transformation: We build mobile-first customer journeys, from instant onboarding to AI-powered claims processing, reducing friction and improving customer satisfaction.
• Regulatory navigation: We guide insurers through APAC's diverse regulatory landscape, ensuring compliance while identifying growth opportunities in emerging markets.
• Partnership ecosystems: We facilitate strategic partnerships with veterinary networks, pet care platforms, and retail channels to expand reach and build sustainable competitive advantages.

Why early movers advantage matters

APAC's pet insurance market is young but scaling fast. Rising veterinary costs, pet humanisation, digital-first distribution, and creatively embedded models create a strategically attractive market for insurers willing to innovate locally.

By drawing lessons from Europe's mature markets and adapting them to APAC's unique economic and cultural contexts, insurers can design products, partnerships, and ecosystems that not only close the protection gap but also deliver long-term customer value.

The opportunity is substantial: pet insurance remains underpenetrated in APAC, and early movers who combine digital innovation with embedded distribution are well positioned to capture significant market share in this rapidly growing segment.

References:

1. Asia-Pacific Pet Insurance Market (Market Data Forecast, July 2025).
2. Singapore Pet Insurance Market Size & Outlook (Deep Market Insights, 2025).
3. Vet Talk: Understanding and managing the rising cost of pet healthcare (The Straits Times, March 2025).
4. How the trend to humanisation is shaping up Asia’s pet economy (Allianz Global Investors, March 2024).
5. Expanding Health Insurance to Our Furry Family Members – Closing the Pet Protection Gap (Synpulse, August 2025).