Statista Reveals Hong Kong's Growing Pet Insurance Market Driven by OneDegree's Success

Surge in Pet Insurance Demand during COVID-19 Pandemic

Statista has reported a remarkable increase in pet ownership in Hong Kong, directly influencing the rise of pet insurance. Alvin Kwock, co-founder of OneDegree, noted that the trend is fueled by a heightened concern for pet health, particularly during the COVID-19 pandemic.

OneDegree's Profitability Explained

• OneDegree's recent profit milestone came during the July-to-September quarter.
• Its average monthly revenue from pet insurance increased by 37% in 2023.
• The pet insurance market has grown 18 times compared to 2020.

The company reported that 64% of its customers are insuring cats, while the rest mostly cover dogs. Kwock states that while 75% of owners often insure just one pet, there are exceptions, like a customer who covers 11 animals.

Growing Pet Care Expenditure in Hong Kong

According to Statista, pet owners in Hong Kong typically spend around HK$700,000 (approximately US$89,467) throughout a pet's lifetime. Notably, food expenses are at the forefront, followed closely by medical costs.

Future Prospects for Pet Insurance

• Even with only 10% of pets currently insured, there remains significant growth potential.
• Kwock predicts a 30% to 50% growth in pet insurance policies over the next 5 to 10 years.

OneDegree stands out as one of four digital insurers governed by a new licensing regime from the Insurance Authority, showcasing the shift towards online policy sales.

Broader Solutions from OneDegree

In addition to pet insurance, the company offers digital asset insurance through its OneInfinity brand, covering 10 of the 13 virtual asset trading platforms in Hong Kong. Meanwhile, the cybersecurity market continues to expand, with strong interest in solutions leveraging AI.

Conclusion: A Bright Future for Pet Insurance in Hong Kong

The demand for pet insurance is likely to grow alongside the rising awareness, making it an exciting opportunity for businesses like OneDegree. With the global AI cybersecurity market set to double by 2026, OneDegree is poised for expansion and success.