Pet insurance premiums in the UK are set to be worth more than £1 billion in the next few years, according to the latest research.
A study by Timetric claims the industry will hit the landmark by 2017, with vet fees, advances in treatments available and increasing claims costs all driving growth.
It is thought that the sector will see a compound annual growth rate of 11.3 per cent from this year onwards – with pets living longer and requiring more medical care.
The report also found that people are more likely to claim on their pet insurance than any other policy they way own.
Allianz – which owns Petplan Insurance – said it had seen a rise of over 50 per cent in the amount of claims it had closed between 2008 and 2012.
The value of those claims also rose by almost a third – and it is predicted that insurers will naturally bump up their own fees to reflect that.
Around half of all households in the country now have at least one dog, cat or other pet.