Admiral targets growth in the pet market with the launch of Admiral Pet, but GlobalData survey data shows it will need to improve its Net Promoter Score (NPS) among customers to challenge insurance market leaders.
In August 2022, Admiral launched ‘Admiral Pet Insurance’ in addition to its motor, home, and travel insurance lines. Admiral customers could previously buy pet insurance through the brand via a third party; however, the new pet policies will be handled only by the insurer in-house, including pricing, underwriting, and customer service. GlobalData estimates Admiral underwrote 6.4% of the UK pet insurance market in 2021, which made it the fifth largest pet insurer in the market by gross written premiums.
GlobalData’s 2021 UK Insurance Consumer Survey asked consumers to rate their pet insurance provider on a 10-point scale in terms of how likely they were to recommend it. Admiral received a high passive score, with 25.0% promoters, 46.4% passives, and 28.6% detractors, which suggests its customers are satisfied but unenthusiastic and are vulnerable to competitive offerings. In contrast, Petplan received the highest NPS among the top three providers, with 43.7% promoters, 39.3% passives, and 16.9% detractors, which helps explain its strong position in the market and suggests customers are satisfied with its products.
This indicates an opportunity for Admiral to convert its customers into promoters. Admiral may be looking to capitalise on this opportunity by focusing on technological advancements and customer service offerings, such as PawSquad. Recently launched by Admiral, PawSquad is a free online service that connects customers with a qualified, UK-registered vet 24/7 for advice and treatment options. Our 2021 UK Insurance Consumer Survey states that of those who have used their pet insurer’s virtual services, 40.8% said they were “extremely satisfied”.
Admiral’s head of pet, Pritpal Powar, highlighted how its focus is not only on customer service and improved products, but also on pricing. This may prove key to Admiral’s success in the market, with inflation at 40-year highs and consumers struggling with the cost-of-living crisis. As per our 2021 UK Insurance Consumer Survey, price remains the main barrier to entry in the pet insurance market, with 41.6% of pet owners with no insurance citing this factor. The market itself has great potential to grow, with 78% of dogs and 89% of cats uninsured, according to the Pet Food Manufacturing Association. This significant growth opportunity highlights a reason why insurance giant Admiral is expanding its insurance offering with the launch of Admiral Pet.
Overall, providers who can offer a balance of affordable premiums, valuable products, and good customer service will be the ones to benefit from the potential growth of the pet insurance market.