SEOUL — South Korea recorded an astonishing jump of more than 50% in the total number of pet insurance policies in 2023. This increase can be attributed to the growing recognition that pets are important companions and even family members in countries where one in four people have a health insurance policy.Households with pets
During the COVID-19 pandemic, there has been a significant surge in the number of pets being adopted into new families. A 2023 analysis by KB Financial Group's Center for Financial Research found that people turned to animals for comfort and companionship as they faced isolation due to strict social distancing guidelines issued by governments. KB survey data showed that more than 5.5 million households own at least one pet.
At the same time, the domestic pet products market is experiencing rapid growth, with an average annual growth rate of over 10%, reaching 4.5 trillion won in 2023, according to research by the KB Financial Group's research center. The survey revealed that households spent an average of 154,000 won a month on pet food and other daily necessities last year. In particular, food and snacks account for more than half (50.8%) of total spending on pet-related products.
According to data released by 10 major non-life insurance companies in South Korea on March 6, a total of 109,088 pet insurance contracts were concluded by the end of 2023, a significant increase of 51.7% from the previous year. . Of these, there were 58,456 new contracts, a significant increase of 66.4% compared to the same period last year.
Despite this growth, pet insurance coverage in South Korea is estimated at 1.4%, based on government estimates of approximately 8 million pets, including dogs, cats, turtles, birds and reptiles, compared to the UK. (25). percent) and Japan (12.5 percent).
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