Global Pet Insurance Gains Popularity, Indonesia Still Has Low Penetration

JAKARTA — The pet insurance industry is showing significant global growth, driven by changes in consumer behaviour and rising animal healthcare costs. However, in Indonesia, this product is still in its early stages with relatively low penetration rates. A Credence Research report notes that the global pet insurance market is projected to grow at a compound annual growth rate (CAGR) of 11.41% until 2032. This growth is propelled by increasing veterinary service costs, the ‘pet humanization’ phenomenon—where pet owners treat their animals as equal family members rather than mere pets—and demand for comprehensive protection against illnesses and accidents. This type of protection product even dominates around 71% of the market share in 2024. Additionally, dogs are the dominant category in pet insurance with nearly 78% portion, reflecting the high protection needs for the most commonly kept animals. Meanwhile, Latin America accounts for about 4%, and the Middle East and Africa around 2%. This composition reflects higher adoption rates in mature markets, as well as expansion opportunities in developing countries. Industry developments are also marked by innovations such as digital claims systems, integration of tele-veterinary services, and wellness-based products. On the other hand, competition is intensifying as companies enhance automation, pricing models, and partnerships with animal clinics. The rise in pet care costs is a primary factor driving the need for insurance. Treatments such as surgeries, hospitalisations, and medications for chronic illnesses can impose significant financial burdens on owners. Quoted from Money.com on Friday (10/4/2026), in general, pet insurance provides reimbursement for services like diagnostics, hospitalisations, surgeries, and treatments if the animal falls ill or suffers an accident. Industry data also shows that pet care costs continue to rise. Lifetime care costs for dogs have increased by around 12%, while for cats nearly 20% since 2022.