Wearables and smart devices in the pet insurance market offer a significant opportunity for insurers to expand their client base. According to GlobalData’s 2023 UK Insurance Consumer Survey, while only 15.9% of pet owners currently use smart devices to monitor their pets’ health, a considerable 47.1% would consider doing so in the future. Covéa’s partnership with pet wearables provider Tractive underscores the potential for insurers to leverage these devices in underwriting insurance policies while also opening new avenues for distribution.
Pet owners predominantly use smart devices to monitor play and interactions, with 51.7% utilising them for this purpose. However, there is untapped potential in using these devices for broader health monitoring, such as tracking sleep patterns, which 39.6% of pet owners would consider. Tractive, known for its all-around devices that monitor both health and location, exemplifies how insurers can capitalise on pet wearables’ popularity and align their offerings with consumer demands. Partnerships such as the one between Covéa, software house Ignite, and Tractive demonstrate a strategic approach to reaching and engaging pet owners effectively.
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Tractive’s pet protection signifies a move to integrate pet wearables with insurance offerings. By providing free devices, Tractive demonstrates a commitment to its customers while incentivising them to opt for insurance coverage. The high demand for devices that manage and track pets’ health and location underscores the importance for insurers to adapt and cater to evolving consumer needs. Given the relative cost of these wearables, between £45 and £60, it makes it more affordable to offer them with a policy.
Pet wearables provide data that insurers can analyze for more effective risk management. GPS trackers, for instance, offer insights into pet activity, enabling insurers to assess health trends and mitigate risks accordingly. This data-driven approach not only enhances the affordability of pet insurance but also expands insurers’ customer reach by offering tailored policies based on individual pet profiles.
Pet insurers should embrace the opportunity presented by pet devices and wearables. By aligning their offerings with consumer preferences, leveraging data analytics, and focusing on health and location tracking, insurers can not only attract new customers but also foster greater engagement and loyalty within their existing client base. This represents a promising avenue for insurers and may best be served through partnerships with pet wearable companies.
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