1. Analysis of the demand for pet insurance among uninsured pet owners in the United States
- Author
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Jie Li, Guillaume Lhermie, Leslie J. Verteramo Chiu, Casey L. Cazer, Cornell University College of Veterinary Medicine, State University of New York (SUNY), Department of Population Medicine and Diagnostic Sciences, College of Veterinary Medicine, Cornell University [New York], Charles H. Dyson School of Applied Economics and Management, Université de Carthage - University of Carthage, Interactions hôtes-agents pathogènes [Toulouse] (IHAP), Ecole Nationale Vétérinaire de Toulouse (ENVT), Institut National Polytechnique (Toulouse) (Toulouse INP), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-Institut National Polytechnique (Toulouse) (Toulouse INP), and Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE)
- Subjects
Adult ,Male ,040301 veterinary sciences ,[SDV]Life Sciences [q-bio] ,Sample (statistics) ,Canine cancer ,insurance features ,Preventive care ,0403 veterinary science ,Young Adult ,Dogs ,Willingness to pay ,Surveys and Questionnaires ,pet economics ,Animals ,Humans ,health care economics and organizations ,Aged ,Aged, 80 and over ,Service (business) ,pet insurance ,Insurance, Health ,Actuarial science ,General Veterinary ,Consumer demand ,Ownership ,0402 animal and dairy science ,Pets ,04 agricultural and veterinary sciences ,General Medicine ,Middle Aged ,040201 dairy & animal science ,United States ,3. Good health ,Conjoint analysis ,insurance demand uptake ,Cats ,Female ,Business ,Dog owners - Abstract
International audience; Background: Although cost is often a barrier to providing optimal veterinary care, only a minority of pet owners use insurance to help cover veterinary costs. We sought to estimate consumer demand and preferences for pet insurance and how educating owners on treatment costs and disease risk affects pet insurance uptake.Methods: We surveyed 306 dog owners across the United States without pet insurance, including a choice experiment, used ordinary least squares regression to estimate the demand for pet insurance, and conjoint analysis to estimate the pet insurance feature preferences.Results: Pet insurance uptake increased by 12.3% after veterinary treatment cost and canine cancer risk information was presented to participants. We found that, on average, pet owners were willing to pay 24 dollars more per month for a preventive care service in pet insurance. Forty-four percent of participants were willing to spend up to 1000 dollars to prolong their pet's life a year, while 46% of the sample were willing to spend 3000 dollars or more.Conclusions: Our results suggest that providing pet owners’ information about the costs and likelihood of disease can increase their willingness to pay for pet insurance. Coverage of preventive care was the most valuable feature in pet insurance among those presented to dog owners.
- Published
- 2021