North Americans will take an increasingly strong interest in pet insurance in the next five years, driving sales as high as $1.1 billion in 2012, according to a report by Packaged Facts, a division of MarketResearch.com (New York).

“Pet Insurance in North America” bases its predictions on dramatic growth in the overall pet market associated with the rise in affluent households willing to spend more on the health and well-being of their pets. It estimates that pet insurance revenues were $248 million in 2007, up 21 percent from $205 million in 2006.

Fostering growth in this segment is the fact that, for the first time, insurance plans are being sold under nationally known pet care brands such as PurinaCare and American Kennel Club. Further driving interest are companies that target consumers through new distribution channels, such as direct-to-consumer, veterinarian offices, pet-services providers, supermarkets and insurance agencies.

“Many new companies have entered the market over the past three years, and it’s a sure bet that more well-funded companies will jump on board in the coming year,” said Tatjana Meerman, publisher of Packaged Facts. “Each company has its own version of pet insurance products, ranging from highly customizable plans to greatly simplified ones for a mass market. In the pet insurance spotlight are pet market companies and brands—including PurinaCare, AKC, ASPCA—as well as dedicated pet insurance underwriters such as American Pet Insurance Co. and SecuriCan, and following in the footsteps of providing consumer finance services, Kroger.”

For more information about the report, visit www.packagedfacts.com/Pet-Insurance-1391937/.[June 2008 PET AGE]