Hong Kong’s Rising Pet Ownership Fuels OneDegree’s Profit Surge: An In-depth Look at the Growing Trend of Pet Insurance

The purchase of pet insurance in Hong Kong is on the rise, leading to increased profits for insurer OneDegree. According to the company, cats make up 64 percent of their insured pets, with dogs making up the remainder, apart from a small number of birds.

Alvin Kwock, the co-founder of OneDegree, noted in a discussion that during the Covid-19 pandemic, there has been a noticeable increase in pet ownership in Hong Kong, particularly dogs and cats. He added that pet owners are demonstrating greater concern for their pets' health, treating them as valued members of their households.

Kwock mentioned that the organization's initial earnings, achieved in the quarter from July to September, were partially fueled by items that provide financial coverage for veterinary expenses when pets like dogs, cats, and even birds, fall ill or get injured.

The firm stated that 64 percent of their insurance policyholders have cats, with the remaining being dog owners, apart from a handful who own birds. Approximately 75 percent of pet owners have insurance for just one pet, although there is one customer who is paying for insurance for 11 pets.

Having a pet in Hong Kong has gained increased interest recently, as the count of household pets such as cats and dogs surged by 50,000, reaching 1.19 million from 2018 to 2023, as per the data gathered and visualized by Statista, a Germany-based data analytics company.

Pet owners in Hong Kong are among the highest spenders in the Asia-Pacific region when it comes to pet care, with an average lifetime expenditure of approximately HK$700,000 (US$89,467) on pet-related products and services, as per a survey conducted by OneDegree in March. The survey pointed out that the most significant portion of this expense is pet food, with veterinary bills coming in second.